Inversiones Maslosa / Insights / Blog / Self-employedBlog
Diversification, Profitability and Added Value
IF YOU ARE SELF-EMPLOYED AND EARN LESS THAN €2,500 A MONTH, YOU WOULD EARN MORE WORKING FOR THE MINIMUM WAGE AT A SUPERMARKET.
The idea of being self-employed is often associated with freedom and the possibility of building something of your own, but in practice, this “freedom” comes with a disproportionate financial and bureaucratic burden. It is evident that, under the current system of tiered contributions and taxation, self-employed individuals with moderate incomes face an unsustainable situation. Fixed costs, such as self-employment contributions and income taxes, along with deductible expenses, significantly erode gross income, leaving many self-employed workers with net earnings barely comparable to the Minimum Interprofessional Wage (SMI).
Figures from the Tax Agency show that two-thirds of self-employed workers declare net income below the SMI, meaning that millions of people are trapped in a precarious labor model. The 2023 reform of contributions based on actual income promised to alleviate this burden, but in reality, it has perpetuated a regressive dynamic: self-employed individuals with lower incomes continue to bear a proportionally greater burden than those with higher earnings. This is not only unfair but also deeply discouraging for those trying to start a business or maintain independent economic activity.
On the other hand, the comparison with salaried employment is significant. While a self-employed person’s net income may be slightly higher than that of a worker earning the minimum wage, the social benefits and financial stability of salaried employment clearly tip the scales in its favor. Paid vacation, unemployment benefits, and income predictability are advantages that the self-employed system simply cannot offer. Furthermore, the financial stress associated with income fluctuations and delayed payments from clients turns the supposed “freedom” of being self-employed into a constant source of uncertainty.
This situation calls for a review of the fiscal and labor model for the self-employed. It is essential to establish more progressive contribution rates tailored to the economic realities of each sector, reduce administrative burdens, and offer real tax incentives for those with low income or just starting their activity. If concrete measures are not taken, we will continue to see how self-employment becomes synonymous with economic precariousness, discouraging entrepreneurship and limiting job opportunities outside salaried employment.
Ultimately, the fact that working in a supermarket, earning the minimum wage, can be more profitable than being self-employed reflects a systemic failure. If we want to build a dynamic and inclusive economy, we must ensure that being self-employed is not a financial sentence, but a viable and sustainable option for those who choose to bet on their labor independence.
