Benefits for self-employed workers 2021 introduced by RD30/2020 of September 30
Patrick Gordinne Perez2025-01-16T17:00:49+00:00The Government has approved the extension until 31 January 2021 of the current extraordinary benefit for cessation of activity, which will be compatible with the activity and will also be aimed at seasonal self-employed workers, as well as the creation of a new extraordinary benefit for the self-employed 2021 for suspension of activity.
This is regulated in Royal Decree-Law 30/2020, of 29 September, on social measures in defence of employment, which also regulates the new extension of ERTES.
EXTENSION OF THE CURRENT EXTRAORDINARY SEVERANCE BENEFIT
The current extraordinary benefit for termination of activity will be extended until 31 January 2021, being compatible with the activity, provided that, during the last quarter of 2020, the following requirements are met :
– Proof of areduction in turnover during the fourth quarter of 2020 of at least 75% in relation to the same period of 2019.
– Not exceed a net income of 5,818.5 euros (1.75 times the minimum wage) in the period October – December of this year.
To determine entitlement to the monthly benefit, the net income for the fourth quarter will be prorated, and may not exceed 1,939.58 euros per month.
Those who meet these requirements may continue to receive the current special unemployment benefit for self-employed workers or apply for it.
Likewise, self-employed workers in a situation of pluriactivity will also be able to apply for it, as long as the income from their self-employed activity does not exceed 2.5 times the SMI (2,320 euros per month). Likewise, self-employed workers who benefit from the Flat Rate and who have paid contributions for less than a year (previously they could not) will also be able to access it.
With this new extension, the self-employed will receive 50% of their contribution base (previously they received 70%) and it includes exemption from contributions.
Once requested, the benefit will begin to accrue with effect from 1 October 2020 and will have a maximum duration of 4 months, provided that the application is submitted within the first fifteen calendar days of October. Otherwise, the effects are fixed on the first day of the month following the month in which the application is submitted.
Self-employed workers who, because they do not meet the requirements, cannot access this benefit, may apply for an income reduction benefit, as long as their income in the last quarter of 2019 does not exceed the minimum wage (SMI). The amount of the benefit will be 50% of the minimum contribution base and they will also be exempt from paying contributions and will be counted as having paid contributions.
Compatibility with paid work
The activity termination benefit may be compatible with paid employment, with the following conditions applying in this case:
– Net income from self-employment and income from paid employment may not exceed 2.2 times the minimum wage.
– Income from paid employment may not exceed 1.25 times the minimum wage.
The amount of the benefit will be 50% of the minimum contribution base that corresponds to the activity.
The application must be accompanied by a sworn statement of the income received as a result of paid employment, without prejudice to the obligation to submit a company certificate.
Seasonal self-employed
Seasonal self-employed workers may continue to receive the special allowance for cessation of activity, provided that they meet the following requirements:
– They have paid contributions for a minimum of four months between the months of June and December 2018 and 2019.
– Their income does not exceed 23,275 euros in 2020.
– They have not carried out any activity or been registered or assimilated to registration from 1 March to 31 May 2020.
With this benefit, seasonal self-employed workers will receive 70% of their contribution base and will be exempt from contributions.
NEW BENEFIT FOR TEMPORARY SUSPENSION OF ACTIVITY FOR SELF-EMPLOYED WORKERS
From 1 October 2020, self-employed workers who are forced to suspend all their activities as a result of a decision adopted by the competent authority as a measure to contain the spread of the Covid virus19 will be entitled to an extraordinary economic benefit for cessation of activity under the terms and requirements set out below.
The new benefit for temporary suspension of activity for self-employed workers may be enjoyed from the day following the adoption of the measure to close the activity until the last day of the following month in which it is agreed to lift it.
Self-employed workers who meet the following requirements may apply for this benefit:
– Be affiliated and registered in the Special Social Security Scheme for Self-Employed or Self-Employed Workers (RETA) at least 30 calendar days before the date of the decision to cease activity.
– Be up to date in the payment of Social Security contributions. However, if on the date of the suspension of activity this requirement is not met, the managing body will ask the self-employed worker to pay the contributions due within a non-extendable period of 30 calendar days.
Amount of the benefit for the self-employed in 2021
The amount of the benefit will be 50% of the minimum contribution base corresponding to the activity carried out. It will be increased by 20% if the self-employed worker is recognised as a member of a large family and the only income of the family unit or similar during that period comes from the suspended activity.
However, when two or more members of the same household are entitled to this extraordinary benefit for cessation of activity, the amount of each of the benefits shall be 40%, and the provision in the previous section for large families shall not apply.
During the time that the activity is suspended, the self-employed worker will remain registered in the corresponding special scheme and will be exempt from the obligation to pay contributions. The exemption from the payment of contributions will extend from the first day of the month in which the measure to close the activity is adopted until the last day of the month following that in which the measure is lifted.
The benefit will be incompatible with the receipt of remuneration for work as an employee, unless the income from the work as an employee is less than 1.25 times the amount of the minimum wage; with the performance of another self-employed activity; with the receipt of income from the company whose activity has been affected by the closure; as well as with the receipt of a Social Security benefit except for that which the beneficiary was receiving because it was compatible with the performance of the activity that he/she was carrying out.
CONTROL AND REVIEW OF 2021 SELF-EMPLOYED BENEFITS GRANTED
As of 1 March 2021, all provisional rulings will be reviewed.
For this purpose, the mutual insurance companies collaborating with the Social Security, provided they have the consent of the interested parties, will obtain the tax data of the self-employed workers for the year 2020 from the Ministry of Finance.
If the mutual insurance companies collaborating with the Social Security are unable to access the data held by the tax authorities, the self-employed workersmust provide the collaborating mutual insurance company with
– Copy of form 390 of the annual VAT summary return for the year 2020.
– Copy of form 130 corresponding to the self-assessment in instalments of Personal Income Tax (IRPF) for 2020.
– Individual income tax return or company certificate stating the remuneration received as an employee.
– Self-employed workers who pay Personal Income Tax (IRPF) by objective assessment (form 131) must provide the necessary documentation to accredit the income required in this provision.