CASS contributions (Caixa Andorrana de Seguretat Social), new upcoming changes
As of September 1, 2019 the amendment of Law 17/2018 (Law 9/2019 of 7 of February). This new law has several changes that affect self-employed workers. From now on, they will pay based on their income. This has been done with the objective of being more equanimous.
In PSF we know that this information is important for our clients and therefore we think it is convenient to comment on it.
What changes will we find in the new CASS regime?
We explain the differences between the current regime and the new one.
Until now, the CASS contribution scheme for self-employed workers was organized as follows:
- The self-employed contribution base is calculated by applying a certain percentage to the average monthly salary of the total number of employees of the previous year.
- The percentages determined were divided into 4 (25%, 50%, 75% or 100%).
It can be said that it was a fairly simplified model and with quotation tranches that did not allow much flexibility.
The new scheme will be organized as follows:
- The contribution base of the self-employed is calculated by applying a certain percentage to the average monthly salary of the total number of employees of the previous year.
- The percentages determined are increased to 7 (25%, 50%, 62.5%, 75%, 100%, 125%, 137.5%).
- In addition, a new contribution scheme is created for young entrepreneurs under 35 during the first 12 months of activity. These will contribute 55% of the minimum wage, that is, between 50 and 60 euros, and will be entitled to benefits from the general branch.
Why this change? For what purpose is this modification made?
This remodeling of the law responds to the need to create a more equitable system for all, taking into account the sustainability of the CASS system.
This measure responds to the resolution of the Consell General of May 5, 2016. At that time, the Government was asked for the possibility of establishing the contribution of people who exercise an activity on their own:
- depending on their income or,
- depending on the average salary in the sector.
In PSF we are on top of these changes, to give the best assistance to our customers.
If you need more information, contact us.
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