In 2022, dozens of concerts throughout Spain resulted in a 5.9 million euro hole in the Social Security system, according to a work inspection report obtained by EL PAÍS regarding a company called Actura 12 S.L. This case sheds a light on the issue of labor precariousness among musicians, which creates a fertile ground for this alleged fraud. Many companies have been engaging in this practice for years, leading to even greater losses for the state. Most artists do not see becoming self-employed as viable due to the inconsistency and low income involved, which creates an opportunity for companies like Actura 12 to exploit.
The modus operandi of these companies involves demanding a invoice from musicians for concerts, which they cannot provide if they are not self-employed. In response, billing companies hire the musician for a day, invoice on their behalf, pay them, and then revoke the employment. Some of these companies, regardless of the musician’s fee, contribute the minimum Social Security amount and declare the rest as supplements or other types of income. This under-contribution results in the musicians earning more money upfront, but losing social protection in the long run.
Several musicians have described the practices of these companies to EL PAÍS, detailing how they all had identical experiences of being employed by these billing companies. These musicians have chosen to remain anonymous to protect themselves from potential legal and reputational consequences. Experts in the field have condemned these actions as fraudulent and detrimental to both the musicians and legally-operating companies in the sector.
The origins of this issue dates back about two decades, when many concerts were paid for in cash. Today, however, local authorities require invoices for payment, which musicians often cannot provide due to the instability and lack of regulation in the sector. Many artists struggle to become self-employed due to low incomes, prompting the government to introduce a specific self-employment fee for the artistic sector. However, the fee is often deemed unaffordable for many musicians, leading them to rely on billing companies.
The solutions to this issue include greater regulation of the sector, fair remuneration for artists, and proper employment arrangements with public and private employers. The variety within the music sector, from part-time musicians to those reliant on music for a living, complicates efforts to understand and regulate the industry. It is crucial to address this issue to ensure that musicians receive fair treatment and social protection when performing. The need for systemic change is evident, and it is time to push for a more fair and sustainable model for artists in the music industry.
