The personal services sector (SAP) or care economy is the fastest growing in current and future employment, according to World Economic Forum.
The care economy expects 2,600,000 jobs in 2022 (numbers drawn from US data), much higher than other areas such as sales, marketing content, data, artificial intelligence or engineering and cloud computing.
How will Spain be prepared if 80% of the volume of employment in this sector is within Informal or underground economy? Regulation is urgent and necessary to facilitate the emergence of hundreds of thousands of jobs, promote the professionalization of the sector and the establishment of specialized companies.
Everything indicates that this will become a reality in the coming years and Alars, a company specializing in caring for people since 1999, we are ready. And for this, Spain only has to look at Europe, copy the best practices, adapt them to our own peculiarities and try to improve them.
In 2005, the so-called Borlow’s Plan (Law 2005-841 of July 2005), which enabled, professionalized and brought the domestic services sector out of the shadow economy in France. This law responded to three main objectives.
in the first place, Increase the purchasing power of families In obtaining high quality personal and local assistance services within the law, to facilitate their access to the greatest number of people.
They do this through exemption from social contributions, a reduction in value-added tax for professionals and companies providing services in the sector and a 50% reduction in personal income tax on expenditures for these services at home, up to a maximum of 12,000 euros per year, which can be increased up to 20,000 euros in some cases and for services certain.
Also create a tax credit in the personal income tax, with the refund of income taxes with low purchasing power that cannot be deducted.
With a corporate discount in payment fees corporate tax From those amounts allocated to these services to support their employees and family members in reconciling their personal and work lives and equal opportunities.
The care economy will create 2,600,000 jobs in 2022
Second, this law will improve the service supply structure and simplifies access them by creating a so-called Universal Service Employment Examination (CESU).
Third: Professionalizing the sector and ensuring the quality of services through the adoption of quality standards by the state.
Similar models have been followed in Belgium, Austria, Finland, Sweden or the United Kingdom. With Borlow’s plan, More than two million direct and indirect legal jobs in this sector for the first eight years.
Likewise, it improved the fight against overwhelmed labor, and made it possible to provide assistance for the care of children at home, the elderly and people with disabilities. He favored the creation of many small multi-service local and national entities.
Since its entry into force, Users increased by 54%, as well as the number of hours of services provided. It has met the important challenge of 30% of households using these services.
These data were of great importance with regard to the level of social well-being, equal opportunity, and work-life balance.
In France, the Borlo plan created more than two million legal jobs in the service sector in the first eight years
from Spanish Association for Personal and Home Services (AESPD) we suggest The emergence of the black economy and professionalizing the sector, with domestic workers having the same labor rights as everyone else and supporting families in employing these services through a special scheme for employee and employer social contributions. Whether it is the individual who is appointed directly, or if he is appointed through a service company.
We also require tax treatment similar to the one that was done in France with Borlo’s law, because that’s what really contributes to eliminating the shadow economy, Stop paying unemployment or social benefits that are incompatible with your already working condition.
Similarly, it is highly recommended to create a self-entrepreneur persona, which provides services to businesses and users. It will be enough to notify the administration of your registration and you will only pay for all Social Security and Personal Income Tax a percentage of your bills until you reach a certain sales volume where you will actually pay the normal system of any company.
According to EIOPA, the regulation will create a total of legal jobs The Personal Services Suite (SAP) equates to 1.2 million full-time jobs in three years.
Spain should look to Europe, copy and adapt best practices
When we talk about SAP, we refer to household chores, home guidance and care, care of family members in the event of illness or convalescence, maintenance law supplementary services, home tutoring, day care for children in the home and driving of vehicles. , among other things.
This would assume a balanced balance of state coffers. The formula will be: New income plus unrealized expenses – unemployment and benefits – less system costs, equal equilibrium.
The current reality is that in recent years there has been no greater number of registrations within the sector due to the impossibility of legal cost on the part of many families.
The number of social security affiliates reached in August 2021 381,737 affiliated companies, a number that has not been able to increase, but rather is decreasing since the royal decree came into force in 2012 regulating the work relationship of a special nature to serve the family home.
Although we are in a sector designed for significant growth in job creation, due to the characteristics and needs of our society.
According to EIOPA, the regulation would create 1.2 million full-time jobs in the care sector
Ultimately, this well-regulated sector will produce social welfare and new jobs, but for this, measures to support families in hiring local personnel and auxiliary personnel are necessary, as happened in the French example more than 15 years ago.
Currently, a new increase in the minimum wage (SMI) without parallel measures to support families can lead to an increase Hiring setback In the personal and home services sector.
Therefore, we suggest that this salary increase be offset by an increase in Deductions for personal income taxor rewards in social contributions or social benefits that families can benefit from, and equal social costs, whether employed by the family or through a specialized company.
In addition to the application of a very reduced value-added tax in this sector, which is quite acceptable by the European Union in regions with high rates in the shadow economy. In fact, this has already been implemented in a good number of neighboring countries.
*** Javier Benavente Barron is President of Alares and the Spanish Association of Personal and Home Services (AESPD).
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