Iguality is committed to the principle of Equal Pay for Equal Value across all roles and contract types (freelancers, employees, or others). Our goal is to ensure that compensation reflects the true value of the work and is applied fairly, regardless of the individual's contract or personal tax status.
Currently, we define this fairness based on a target Net Pay per Hour of approximately €25 per hour for our current freelance roles.
Application to Current Freelance Contracts
Our current structure is built to guarantee the established Net Pay Equality for all existing equivalent freelance roles.
The Current System: Why Base Rates Differ
To ensure everyone receives approximately €25 net per hour, we are forced to set different Base Hourly Rates (Base Imponible). This difference is not a reflection of the work's value but a necessary mathematical adjustment due to external Spanish tax rules (IRPF and IVA):
- The IRPF Factor: Different freelancers may have different mandatory IRPF withholding rates (e.g., 7% vs. 15%). This deduction changes the required Base amount needed to hit the final net target.
- The IVA Factor:
- For Services Subject to IVA: The Base Rate must be lower (e.g., €23.59/hour). This is because the 21% IVA is added to the fee, which helps offset the IRPF deduction.
- For Services IVA Exempt: The Base Rate must be higher (e.g., €29.42/hour). This is because the Base must absorb the entire IRPF deduction alone, with no IVA added to balance the amount.
Future Policy: Alignment and Growth
Considering True Value
While the current system guarantees your take-home pay, we recognize that the Base Hourly Rate llauna be another accurate reflection of the true value of the work done for Iguality. If so, this rate should be equal for equivalent roles.
Therefore, looking ahead, we may want to consider transitioning our compensation policy toward prioritizing a single, unified Equal Base Rate for all. This shift would place the principle of Equal Value of Service above a guaranteed Net Payout.
Contingency for Growth and Role Changes
This policy change would only be considered when Iguality would grow significantly, or specific team members would have strong increases in their current hours. Any transition would be managed with a view toward finding a balanced common rate that minimizes any negative or positive financial difference to the current established net payments. We commit to communicating and discussing any such policy change with team members well in advance.
Future Roles and Compensation Differences
Our commitment to equal pay will apply to all future contracts, including both freelancers and future employees. However, as Iguality grows and roles evolve, we may introduce differences in pay for both freelance and employee contracts. These distinctions will be based on objective factors, such as:
- Role and Responsibilities
- Level of Experience
- Contract Type and Duration (e.g., differentiating between a half-time versus a full-time position)
- Market Benchmarks
Any compensation differences between roles, whether for freelancers whose hours increase significantly or for future employees, will be prepared and discussed when the time comes, adhering strictly to all legal and collective agreements. These distinctions will always be clear, transparent, and compliant with all legal frameworks.
Additional Benefits and Development
In the future, we aim to offer comprehensive insurance and wellness benefits to our team members. We also provide regular training opportunities and share information on external events and workshops for professional development.