Royal Decree-Law 30/2020, in addition to the complex regulation of the extension of the ERTEs, also regulates in Article 13 and Additional Provision 4 the new aid scheme for the self-employed.
We shall now summarise the new regulation of these benefits as clearly as the wording of the regulation allows.
Prolongation of the termination of activity benefit
Firstly, the unemployment benefit that the self-employed have been receiving until now has been extended. They may continue to receive this benefit until 31 January 2021, provided that during the fourth quarter of 2020 they continue to meet the requirements established for this benefit.
Self-employed workers who have not received this benefit may apply for it if they meet the requirements and provided that they have received the extraordinary benefit for cessation of activity provided for in article 17 of Royal Decree Law 8/2020, of the 17th March, up to the 30th of June.
The amount of the benefit is 50% of the contribution base.
The main requirements for the extension of, or access to, this benefit are as follows:
- Reduction in turnover during the fourth quarter of 2020 of at least 75% compared to the same period in 2019.
- Not having obtained during the fourth quarter of 2020 a net income of more than €5,818.75.
- In the case of self-employed workers who have dependent workers, they must accredit compliance with all their employment and Social Security obligations.
The recognition of the extension or access to the benefit will be carried out by the collaborating mutual insurance companies on a provisional basis with effect from the 1st of October 2020 if requested before the 15th of October, and if requested later, from the day after the application is made.
During the time that the self-employed person is receiving the benefit, he/she must pay all the contributions into the TGSS. The Mutual Society will pay the worker, together with the benefit for cessation of activity, the amount of the contributions for common contingencies that would have had to be paid if the self-employed person had not been carrying out any activity.
New aid: Extraordinary allowance for cessation of activity
The first of the new aids for self-employed workers is the ”Extraordinary benefit for cessation of activity”, and is intended for self-employed workers who are forced to suspend their activity completely as a result of a resolution or regulation published by the competent authority, which aims to contain the spread of Covid-19.
The requirements for accessing this benefit are as follows:
- To be affiliated and registered at least 30 calendar days before the date of the resolution that agrees the cessation of activity.
- Be up to date in the payment of Social Security contributions.
The right to receive it starts on the day following the adoption of the resolution or regulation that entails the closure of the activity of the affected person, and will end on the last day of the month in which the measure is lifted and ceases to have effects.
The exemption from payment of contributions will be effective from the first day of the month in which the measure of closure of activity is adopted until the last day of the month following that in which the measure is lifted. The period during which the self-employed worker is exempt from the obligation to pay contributions shall be considered as having paid contributions.
The amount of the benefit will be 50% of the minimum contribution base corresponding to the activity carried out, and the application must be made within the first 15 days following the entry into force of the agreement or resolution to close the activity.
New aid: Extraordinary severance benefit for termination of activity
The second new aid is the ‘‘Economic benefit for cessation of activity of an extraordinary nature”, and is intended for self-employed persons whose income has been reduced and who are not entitled to the benefit explained in the previous point.
The requirements are:
- To be registered and up to date in the payment of contributions to the Special Regime for Self-Employed Workers.
- Not have income from self-employed activity in the last quarter of the financial year 2020 that exceeds the minimum interprofessional wage.
- Have a reduction in income in the fourth quarter of 2020 of at least 50% of the income in the first quarter of 2020.
It can start to accrue from the 1st of October 2020 and will last for a maximum of 4 months, provided that the application is submitted within the first 15 calendar days of October. Otherwise, it shall take effect from the first day of the month following the month in which the application was submitted, and shall not last beyond the 31st of January 2021.
During this period of enjoyment of the benefit, the self-employed person is exempt from the obligation to pay contributions.
The amount will be 50% of the minimum contribution base corresponding to the activity carried out.
It should be borne in mind in any case that the collaborating or managing entity responsible for the recognition of the benefit reserves the right to check compliance with the requirements for the benefit enjoyed, and will have the right to claim the amounts received if it can prove that the established conditions are not met.