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BusinessWhat changes come into force this January 1, 2024: pensions, self-employed contributions...

What changes come into force this January 1, 2024: pensions, self-employed contributions and rents

This January 1 comes with news on pensions, self-employed quotas, taxes, tolls, rents and updates to all types of rates.

These are the main changes in the welcome of this 2024:

Self-employed fees

The deployment of the new contribution system for self-employed workers based on their real income will continue to be developed in 2024. It consists of 15 installment sections ranging from 225 to 530 euros – in 2023 they have ranged from 230 euros to 500 euros -, depending on net returns. The self-employed have the possibility of changing the tranche every two months, with a total of six changes per year, to adapt their contribution to the income forecasts at each time of the year and their professional activity.


As a novelty, due to the new contribution system, all those people who have been registered in 2023 as self-employed, even if only for one day, will have to file the Income Tax declaration from 2024 onwards. Before the entry into force of this system, only self-employed individuals who in the previous year had obtained more than 1,000 euros of net income in their business were obliged to do so.

Pension rise

Contributory pensions will increase by 3.8% with the arrival of the new year, while the minimum contributory pensions will increase by 6.9%, except for those of widows with family responsibilities, which will increase by 14.1%, from 905.9 euros current up to 1,033.6 euros per month. For their part, non-contributory income and the Minimum Living Income (IMV) will also increase by 6.9%.

With this 3.8% increase that contributors will experience in 2024, the average retirement pension will increase by 734 euros per year or 52 euros per month, while the system’s average pension, currently 1,200 euros per month, will increase by 638 euros per year, which means 46 euros more per month.

The salary of officials

The salary of the more than 3.5 million public employees will rise by a fixed percentage of 2% with the arrival of 2024, which may be raised by another additional 0.5% depending on the evolution of the CPI.

The salaries of public employees increased by 3.5% in 2022 and, for the moment, they have risen by 3% in 2023, since it remains to be seen whether they will receive, retroactively and consolidated, an additional increase of 0.5 % (in case the nominal GDP in 2023 exceeds that projected by the Government).

Limit on updating rents

The annual update of the income of housing rental contracts may not exceed 3% in 2024, while this year the new tax incentives applicable to the Personal Income Tax (IRPF) also begin to take effect. leases of properties intended for housing. Both measures are part of the Housing Law.

Thus, the tenant of a primary residence rental contract whose rent must be updated because the corresponding annual period of validity of said contract has expired, may negotiate with the landlord the increase that will be applied in that annual rent update. However, if there is no agreement between both parties, the annual variation in income may not exceed 3%.

In the event that the landlord is a large holder (more than 10 urban properties), the limit of the annual variation in rent may not exceed 3%, whether or not there is an agreement between the parties.

The SMI is at 1,080 euros waiting for the Government’s decision

The interprofessional minimum wage (SMI) starts 2024 at 1,080 euros per month for fourteen payments, waiting for the increase that the Government finally decides to apply as a result of its negotiations with CCOO, UGT, CEOE and Cepyme. In any case, whatever increase is made to the SMI for this new year, it will have retroactive effects from January 1, 2024.

It would not be the first time that the increase in the SMI was approved once the year began for its application with retroactive effects. It already happened with the 2023 increase, when the Government, with the support of the unions and the rejection of employers, approved in mid-February to raise the SMI by 8%.

Tolls

Toll rates will rise between 5% and 6.65%, depending on the specific conditions of each concession.

Specifically, the 2024 rate review has meant an increase of 6.65% for the AP-46 and AP-7 Alicante-Cartagena; 6.55% for AP-9; 5.12% for AP-68; 5.07% for the AP-6, AP-51, AP-61, AP-53, AP-71 and AP-7 Málaga-Guadiaro, and 5% for the AP-66.

Increase in service and supply rates

The gradual withdrawal of tax cuts on electricity will mean one of the main changes in the monthly billing of supplies. The VAT on electricity will go from 5% to 10%, where it will remain throughout 2024. The VAT on gas will go from 5% to 10% in the first quarter, and then return to 21%.

Other taxes linked to electricity will also be modified throughout the year. Specifically, the Tax on the Value of the Production of Electric Energy (IVPEE) – which was suspended – will have a rate of 3.5% until March, going to 5.25% until June, and the Special Tax on Electricity (IEE) – now at 0.5% compared to 5.1% – will be set at 2.5% in the first quarter of the year and will go to 3.8%.

As for other supplies, the rate of last resort (TUR) for natural gas will rise by 8.19% on average, in relation to the price in force since the previous review. However, the price of the bottle remains at 15.14 euros pending the review this January. Telecom companies will raise rates – like those already announced by Movistar and Vodafone – and postal stamps will increase their price by 5.1%.

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