Minimum quote – What it is, definition and concept

The minimum contribution is the minimum contribution period required of any citizen who wishes to access a contributory pension during their retirement. In the same way, it could refer to the minimum contribution base required.

The minimum price, therefore, is usually a very recurrent expression in the economic world and, especially, in Spain.

But we must know that with the minimum contribution we are not only referring to the minimum contribution period required, as we can also refer to the minimum contribution base.

For this reason, below we explain those contexts in which this expression may appear, trying to allow the reader to identify what it is referring to in each case.

Minimum contribution required by Social Security

In the first case, we must know that to receive a pension, the worker must be contributing a minimum period of years. Well, if they do not have those years of contributions, they do not have the right to receive said pension.

In the case of Spain, a worker who wants to receive a contributory pension must have contributed a minimum of 15 years. However, the pensioner would collect 50% of the regulatory base. Well, we can say that we are talking about the minimum contribution required and, as such, it entails a lower outlay by Social Security.

If you want to charge 100%, the minimum contribution, or the minimum contribution period that is required is 35 years. In this case, we are talking about a contribution period that would generate the right in our favor to receive 100% of the pension.

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Minimum contribution for self-employed employees

In the case of self-employed workers, the minimum contribution period required is 15 years, in the same way that that necessary to retire with 100% of the pension is 35 years.

Minimum contribution base

On the other side we have the contribution base, to which those who use the expression “minimum contribution” could also refer. Well, it is convenient to point out that the minimum contribution, in this case, refers to the contribution base, this being the amount that the company and the State pay to Social Security.

The contribution base is the gross monthly remuneration, which must include the prorated extra payments of a worker.

The contribution base is essential when it comes to knowing your pension amount. The higher the contribution base, the greater the amount to be received. But we must know that the fact that we also use the minimum price to refer to the contribution base is because the contribution base also has minimums and maximums.

Every year the law establishes maximum and minimum limits for the contribution bases of the different professional categories, establishing, on them, how much the worker and the company must contribute per month to Social Security. This happens in the case of workers employed by the General Regime.

In Spain, depending on the listing group we are talking about, we have different minimum and maximum bases.

Quotation Bases

The minimum contribution base, therefore, is the minimum amount that we must allocate to Social Security for the work we perform. This, in order to collect the pension in the future.

Minimum contribution base for freelancers

The self-employed are not within the General Scheme, so they have the obligation to contribute, in this case by paying the self-employed contribution to Social Security.

That monthly fee paid by a freelancer depends on the contribution base that he chooses. Usually, these types of workers usually choose the minimum contribution base so that their contribution is as low as possible, but this, in the same way, leads them to collect a lower pension.

The minimum contribution base required for the self-employed is € 944.40. Of this, 30.59% must be paid, that is, € 288.97 to receive a contributory pension. At the other extreme, the maximum contribution base for self-employed employees is € 4,070.00 / Month.

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