Principle
Iguality is committed to Equal Pay for Equal Value across all roles and contract types, including freelancers, employees, or others. Compensation reflects the true value of the work and is applied fairly and consistently, regardless of contract type or individual tax situation.
Target Net Pay
To ensure a decent living standard, Iguality aims for a similar net pay for all freelance roles. Actual base rates vary depending on individual taxes, generally ranging between €22 and €30 per hour. Differences in base rates do not reflect differences in work value; they are simply mathematical adjustments to meet the target net pay after IRPF and IVA.
Bucket-Based Adjustment System
To ensure proportionality and financial sustainability, weekly hours determine a bucket multiplier applied to the base cost. The system is progressive: each band's rate applies only to the hours within that band, not to all hours worked. This means crossing into a higher band never reduces total pay.
- Band 1: 0–15 weekly hours – 100% applied to all hours in this band
- Band 2: 16–25 weekly hours – 55% applied to hours 16–25 (hours 1–15 remain at 100%)
- Band 3: 26–35 weekly hours – 21% applied to hours 26–35 (previous bands unchanged)
The result is a blended effective rate that is always higher than the headline multiplier for that band. For example, a freelancer at 25 hours receives 100% on the first 15 hours and 55% on the remaining 10, giving a blended effective rate of 82% — not 55%. Maximum contracted hours at Iguality as freelancer are 35 per week.
Worked Example
A freelancer with a base rate of €24/hour illustrates the impact of hours and the progressive band system:
- 10 weekly hours: Band 1 (blended 100%) → monthly net €883 / yearly net €10,596 / net hourly €20.39
- 20 weekly hours: Band 2 (blended 88.75%) → monthly net €1,571 / yearly net €18,848 / net hourly €18.15
- 30 weekly hours: Band 3 (blended 71.8%) → monthly net €1,904 / yearly net €22,848 / net hourly €14.65
- 35 weekly hours: Band 3 (blended 64.6%) → monthly net €2,000 / yearly net €24,000 / net hourly €13.19
Extra or Missing Hours
For freelancers with a fixed monthly invoice, extra or missing hours are handled as follows:
Extra Hours on Top of Base Hours:
Calculate the base hourly rate by dividing the normal monthly invoice by the total monthly hours (base weekly hours × 4.33, the average number of weeks per month). Multiply this rate by the extra hours worked. IVA and IRPF are applied as usual.
**Example: **A freelancer with a monthly invoice of €930 for 10 hours/week has a base hourly rate of 930 ÷ (10 × 4.33) ≈ €21.48/hour. If they work 5 extra hours in a week: extra pay = 21.48 × 5 ≈ €107.40. Total monthly payment = €930 + €107.40 ≈ €1,037.40.
Separate Hours Submitted Independently:
If hours are invoiced separately from the base monthly contract (e.g. covering missing hours or a short-term assignment), treat the hours as a standalone week for the purpose of the band system. Apply the progressive multiplier based on the number of hours being submitted, then apply IVA and IRPF as usual.
**Example: **A freelancer submits 25 separate hours at a base rate of €29.41. Using the progressive band system: hours 1–15 at 100% (€441.15) + hours 16–25 at 55% (€161.76) = total payment ≈ €602.91 (blended effective rate: 82%).
Key Principles
- Equal value, equal net pay for equivalent roles
- Band system is progressive — crossing a band never reduces total pay
- Blended effective rate is always higher than the headline band multiplier
- Maximum contracted hours: 35 per week
- IVA is included only for organisational budgeting
- IRPF is applied only for freelancer take-home pay
- Transparent, auditable, and easy to communicate internally or to freelancers
Future Policy: Alignment and Growth
Considering True Value
While the current system guarantees your take-home pay, we recognize that the Base Hourly Rate can 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, and market benchmarks. Any such differences will always be clear, transparent, and compliant with all legal frameworks.
In the future, we also aim to offer comprehensive insurance and wellness benefits to our team members, alongside regular training opportunities and information on external events and workshops for professional development.