Berserker001

This had been discusses many times, but there is still one thing, I don´t understand.

I have to pay a minimum of 250 euro a month regardless of my earnings. But what if I earn e.g. 3000 Euro per month.

Can I still choose to pay only a minimum base of 250 Euro, or do I have to pay 29,8 % of 3000 Euro?


Mark

cricketman

I believe you can choose. The minimum is 250 euros a month. Some people choose to pay more so they contribute more to their pension.

Berserker001

But this table really confuses me

It seems like you have to pay more, if you earn more. At least up to a maximum base of 29.8% of 3198 Euro a month. 953 Euo is really a lot of money

JLFS

There is the minimum payment which is what you are talking about, but as you get older, over over 52 for example, you can opt to pay more.

This extra gives you a bigger pension than if you just paid the minimum payment.

I dont know anyone who has paid the extra at a younger age than is necessary for the pension calculation, most leave it as late as possible because it does not do you much good, as the rate of pension although caluclated from the whole of the working period, the final years of payments are what gives it the "boost".

Also paying too much can be a disadvantage (not talking about the extra expense) if for some reason you were ill and applied for "permanent incapacity."

I know someone who is quite near retirement age, and has been paying the extra SS contribution for a few years.
He is ill (not fit for work ever again kind of ill) and his lawyer has told him that if he had just been paying the normal SS rate, he would have received the permanent incapacity payment until he retires, then switch to pension when reaching 65.

He has been denied the payment because he would receive the highest rate, and he has had to have appeal after apeal because of the monthly sums involved.
When someone is in his state of health and his age, there is uaually a fight to get the payment, but it is always granted, but as he woul be paid more than someone who had only paid the minimum contributions to SS, he is having one hell of a fight and is constantly being rejected, with the hope that he gives up, as he only has to hang on for a couple more years till he gets his pension.

cricketman

You dont HAVE to pay more if you earn more, you can choose how much you pay.

You can choose to always pay the minimum of 29.8% of 870 euros if you like (i.e. 250 euros per month)

JLFS

Thats right- lots of folks carry on paying the minimum right through their working life.

And if you do want to pay more as you get older, speak to your accountant as to what age you should, so as not to" waste" your money.

Jontee

Now I am confused. I have looked at my bank receipt for my Autonomo. I pay 271,35. It is shown as;

CONT:COM BASE 907,50 CUOTA 270,44
COTIZ.ADIC.LE BASE 907,50 CUOTA 0,91

I really do not want to pay any more than I need as some months I earn hardly anything. Can I ask to pay less?