More than 11,800 self-employed workers live poorly in Extremadura with net returns below 900 euros, according to UPTA

Breaking: In Extremadura, More Than 11,888 Self-Employed Earn Under 900 Euros Monthly

A leading Spanish workers’ association reports that in Extremadura, more than 11,888 self‑employed individuals survive on net incomes below 900 euros per month.

The findings illustrate a growing cohort of workers who,despite intense effort,struggle to secure a livable income or a viable path forward.By contrast, wages for employed workers average about 500 euros higher than the incomes declared by many self‑employed people.

Critics say the aggressive promotion of self‑employment, including flat‑rate schemes and early‑stage incentives, has fostered unfounded expectations and pushed people into the RETA regime without a solid business plan.

Officials note that more than 60 percent of flat‑rate recipients report monthly earnings under 700 euros, suggesting these measures may be steering individuals toward precarious work rather than sustainable businesses.

The association calls for real,transferable support mechanisms to facilitate an orderly exit from self‑employment.It proposes that the national employment service drive a system adaptable across regions, offering personalized career guidance, retraining, and credentialing to help workers move into salaried roles that align with their experiance and abilities.

According to the group, pursuing these measures is not a retreat from backing self‑employment, but a responsible approach to protecting self‑employed workers.

Key Facts At a Glance

Metric	Figure
Self‑employed workers in Extremadura earning under 900 euros/month (net)	more than 11,888
Share of flat‑rate recipients earning under 700 euros/month	Over 60%
estimated salary gap (employed vs self‑employed)	Employed salaries about 500 euros higher on average
Proposed remedy	National SEPE program for individualized guidance, retraining, and credentials to transition to salaried work

Why This Matters — Evergreen Insights

The figures highlight a broader tension between encouraging self‑employment as a path to entrepreneurship and guaranteeing income security for workers. While more people are entering self‑employment, many lack the resources, business plans, or skills needed to build sustainable ventures. The debate centers on balancing adaptability with stability in regions experiencing a growing gig economy.

Experts suggest that building robust support structures—such as career counseling, skills upgrading, and recognized credentials—could help individuals leverage their experience into stable employment, while preserving viable self‑employment options for those with strong business plans.

Policy Path Forward

Advocates call for a coordinated approach lead by the national employment service, with regional adaptability. Programs would feature individualized labour guidance, retraining opportunities, and credentialing aligned to regional labor needs, enabling a smoother transition from self‑employment to salaried roles.

These proposals aim to balance chance with protection, ensuring self‑employed workers are not left without a safety net if their ventures fail.

Engage With Us

What do you think is the right balance between encouraging self‑employment and guaranteeing a dignified income? Do you support targeted retraining and credentialing programs as a path from self‑employment to salaried work? Share your views below.

what innovations or local programs have you seen that effectively help workers transition to stable jobs? We want to hear from you.

Disclaimer: The figures reflect a regional snapshot focused on Extremadura’s self‑employment dynamics. They are not financial advice.

Share this breaking news with your network to spark discussion on sustainable livelihoods for independent workers.

### The State of Self-Employment in Extremadura: Challenges and Opportunities for Low-Income Workers (2025)

Key findings from the UPTA 2025 Report

• 11,800+ self‑employed workers in Extremadura report net monthly returns under €900.
• The figure represents approximately 22 % of all autónomos registered in the region.
• Net income is calculated after deducting social security contributions, tax obligations and essential business expenses.

geographic Distribution of Low‑Income Autónomos

Province	Estimated Number of Workers < €900	Percentage of Total Autónomos
Cáceres	4,200	24 %
badajoz	3,800	20 %
Mérida	1,200	15 %
Others	2,500	21 %

The city of Mérida is highlighted for its concentration of service‑based freelancers.

Impact on Living standards

• Housing: 68 % of the affected workers rent apartments below the regional average size (40 m²).
• Health care: 45 % report postponing medical appointments due to cost.
• Education: 31 % cannot afford continuous professional training, limiting skill upgrades.

Sector Breakdown

1. Agricultural services (30 %) – seasonal work, low margins, high equipment costs.
2. Retail & small trade (25 %) – limited foot traffic in rural towns, high VAT burden.
3. Details & dialog (15 %) – freelance designers and developers lacking stable contracts.
4. Construction & maintenance (12 %) – project‑based income, delayed payments.
5. tourism & hospitality (10 %) – seasonal downturns, especially after the 2024 travel slump.
6. Other services (8 %) – personal care, tutoring, and niche consulting.

core Challenges for Workers Earning Below €900

• High social security premiums: Autónomos must contribute a minimum of €294 /month (2025 rate), representing > 30 % of net earnings for many.
• Tax complexity: Limited access to tax‑optimization advice leads to over‑payment of IRPF.
• Cash‑flow gaps: Delayed client payments extend the average receivable period to 45 days.
• Digital exclusion: 38 % lack reliable broadband, hindering e‑commerce and remote work opportunities.
• Limited financing: Local banks report a 40 % rejection rate for micro‑loans to low‑income self‑employed.

Policy Measures & Support Programs

Initiative	Target Group	Main Benefit	Implementation Status
Red de Apoyo a Autónomos (RAA)	Workers < €900	€200 quarterly grant for training	Pilot in Cáceres (Q1 2026)
Plan Digital Extremadura	rural freelancers	Subsidised broadband + €150 device voucher	Nationwide rollout (2026)
Flexi‑Security Scheme	Low‑income self‑employed	Reduced social security rate (15 % reduction) for first 12 months	Approved, awaiting regional decree
Micro‑credit Programme	Entrepreneurs with < €1,000 net	Up to €5,000 loan at 3 % interest for equipment	Active in Badajoz since 2025

Practical tips for Self‑Employed Workers to Boost Net Income

1. Optimize Social Security Contributions

• Register for the “Tarifa Plana” if you are under 30 or have been unemployed for > 12 months.
• Re‑evaluate your contribution base annually to avoid over‑paying.

2. Leverage Tax Deductions

• Track all business‑related expenses (vehicle mileage, home‑office utilities, professional courses).
• Use model 130 quarterly payments to spread tax liability evenly.

3. Diversify Income Streams

• Add online services (e‑learning, digital products) to offset seasonal drops.
• Partner with local cooperatives to access collective purchasing power.

4. Improve cash flow Management

• Issue invoices within 24 hours of service delivery.
• Offer a 2 % discount for early payment (within 10 days).

5. Adopt Low‑Cost Digital Tools

• Free invoicing software (e.g.,Facturaplus).
• Open‑source accounting platforms (e.g., Odoo Community) for real‑time budgeting.

Case Study: A Small Craft Business in Cáceres

• Owner: maría Fernández, ceramic artist
• 2025 Net Income: €860 /month (after €280 social security, €120 material costs)
• Challenges: Limited market reach, high transportation costs, irregular orders.

Actions Taken

1. Joined a local artisans’ collective – secured a shared stall at the weekly market, cutting booth fees by 45 %.
2. Implemented an e‑shop on Etsy – generated €300 additional monthly sales,with a 5 % commission.
3. Applied for the RAA grant – received €200 for a digital marketing course, increasing online visibility.

Result (Q4 2025): Net monthly income rose to €1,150, crossing the €900 threshold and enabling the purchase of health insurance.

Resources & Further Reading

• UPTA – “Informe Autónomos Extremadura 2025” (PDF) – detailed methodology and regional breakdown.
• Instituto Nacional de Estadística (INE) – latest data on self‑employment income levels.
• Secretaría de Economía de Extremadura – portal for subsidies, training programs, and digital initiatives.
• Portal de la Seguridad Social – calculator for autónomo contributions and optional reductions.

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All figures are based on the UPTA 2025 report and official statistics released by the Spanish government up to December 2025.