Nowadays, working as an employee may not be as profitable as it seems. Many times you don't make ends meet, or some seek to have extra income to be able to improve their lifestyle. But is it possible to work for someone else and at the same time have a business, and therefore be self-employed?
If you also wonder if it is possible be self-employed and salaried as an employee At the same time, in this article we are going to try to clarify any doubts you may have in this regard. Keep reading and we will give you the answer.
Working for someone else and as a self-employed person: the formula for pluriactivity
Imagine that you have a contract in a company where you work for 8 hours, a full day. But when you're done, you go home and There you usually work for a few hours doing graphic design work for different clients. to which you have to present an invoice in order to pay for your service. In other words, you are an employee and at the same time self-employed. But is that possible? Does Social Security allow the same person to contribute to two regimes?
The answer is simple: yes. In reality, this formula, which is not well known, but is available to everyone, is called pluriactivity and is characterized because the worker will be registering with Social Security as an employee and, He will also be self-employed, which would be self-employed.
Believe it or not, it is a way to obtain benefits from both regimes. On the one hand, you will be able to have a job, as far as possible, stable, because as an employee you have a contract and you can feel “supported” if the venture (that is, your business) does not go well. On the other hand, you combine the salary you receive from that job with what you get.
In other words, think that you have a "cushion" that can support you while your business takes off, in such a way that you will always have a minimum (a salary) that will be fixed, and you will be able to dedicate time to your business so that it begins to give you results. This way, when it starts to be more profitable than self-employment, you can decide whether to leave one of the jobs to enhance the other.
Can you be self-employed even if you have a full day?
As we have seen before, combining self-employment with an employed contract is possible. But what if that contract is full-time? Can you work more than 8 hours a day?
To answer this, think about “full-time” freelancers, do you really think they only work 8 hours? Or do they dedicate much more to their business? Surely, We are inclined to think more about the second option than the first.
And in this case, as an employee your “cap” of working hours per day is 8 hours. But as a freelancer you have no limit.. You can work one hour, seven, eleven or as many as you want. And that is where the possibility of having your 8-hour work day comes in and then devoting as much time as you want or can to your venture.
Two regimes, and double payment to Social Security?
As you know, as an employee, when you receive the monthly payroll, it reflects the percentage that is paid into Social Security by the company. Although it is much less than what the company has to pay, it is money. And, when you are autonomous, you know that you must pay the monthly fee on your own.
When you work in both regimes, or consider doing so, one of the biggest doubts you have is regarding Social Security contributions. Do you have to pay twice? Does one prioritize the other? How is it done?
Actually, it's simpler than you think. To begin with, the contribution made by someone else is respected. That is to say, on your payroll they must continue deducting the part that you have to pay to Social Security. However, it understands that, if you are working for another company, you do not have all the hours of the day to work as a freelancer. And that means that, instead of having to pay the contribution of a "normal" self-employed worker, your contribution will be different.
In general, a self-employed worker pays at least 295 euros (more or less) per month. But it is freelancing full time. Something that, if you already have a job outside, It is not your case.
This translates in which your self-employment fee will be lower. How much? Specifically:
- the first 18 months, will be 50% of the minimum base. That is, if we say that the minimum is 295 euros, you would pay half of that, 147,5 euros per month.
- From month 19, and until you want, instead of paying 50%, the fee goes down again and you will only have to pay 25%, the other 75% is a reduction they make to you.
Now, keep in mind that This bonus is not compatible with the flat rate of 60 euros per month for x months as a freelancer. That is, you must choose between one or the other (we recommend the first because it does not have a validity period but you can benefit from it as long as you maintain your situation).
Another point to keep in mind is that you must meet a series of requirements, in the sense that You must have an employment contract and, at the same time, register for the first time as self-employed in the RETA and start a situation of pluriactivity.
If I contribute “double”, do I have double retirement?
If you think about the future, you surely think that, if you contribute twice as much to Social Security, therefore, you should be entitled to two pensions, one as an employee and one as a self-employed person. AND The truth is that you are not wrong.
But, to obtain two retirements, a requirement must be met: have more than 15 years of contributions in both regimes.
What happens if I have it in one and not in another? Then, you would only get the retirement of one of them, in which you met the requirements. The other would make an arrangement to collect a portion of it for not having reached that minimum.
What if you are not 15 years old in any of them? So, Social Security allows you to accumulate both contributions and thus request the benefit in the regime that corresponds to you.
Do you have more questions about being self-employed and employed? Ask us.