The cessation of activity aid for self-employed workers
will remain in force at least until 30 September 2021.
The national government has announced the extension of these aids, as well as those of the temporary employment regulation files (ERTE),as we recently reported in this same blog through a Royal Decree-Law.
The text, which has already entered into force, extends the aid to protect the self-employed, so that they will be able to continue to enjoy the aid for cessation of activity throughout the summer of 2021.
What benefits do these aids offer? Do the conditions change from what has been established to date? How can you access the new cessation of activity aid for the self-employed?
In this article, and as specialists in employment advice,we will try to answer these questions, although the most important thing is to highlight that, with this extension of the extension, extraordinary benefits are maintained for those who can not develop their activity normally.
Important news on the extension of aid for cessation of activity for self-employed
As the main novelty in the aid for the cessation of activity of self-employed for 2021, exemptions from social security contributions are included for all self-employed workers who have been protected in the previous period (between February and May) during the next four months– that is, until September 30, 2021.
These exemptions will be 90% in June, 75% in July, 50% in August and 25% in September.
These exemptions from the quota are, in themselves, aid – as happened last summer – and will therefore be incompatible with the receipt of another of the methods of cessation of activity planned since June.
To access these reductions,the self-employed will not have to apply for the aid, but it will be applied automatically to those who do not access any other benefit and have received until May the cessation of activity.
The amount of the benefit amounts to 70% of the minimum contribution base. The self-employed will also be exempt from paying social security contributions, although this period will count as a contribution and, where appropriate, will be compatible with income from paid work up to 1.25 times the SMI.
The extension of the aid for the cessation of activity for self-employed workers will continue, in this way, still covering almost half a million self-employed, which has undoubtedly been one of the groups of workers most affected by the economic and health crisis caused by the COVID-19 pandemic.
Extraordinary benefit for seasonal self-employed
On the extension of the cessation of activity for the self-employed, it is also important to highlight some of the most important keys of the new agreement that directly influence seasonal self-employed workers.
The royal decree once again collects an extraordinary benefit of cessation of activity for this group.
To access it, it is required, among other requirements, have been registered and contributing as a self-employed worker for a minimum of 4 months and a maximum of 7 months of each of the years 2018 and 2019,provided that at least, in that time frame, you have contributed 2 months of June and September of both years.
Nor may he have been registered as an employee for more than 120 days during those years and, as a novelty with respect to the previous decree, he may not have been registered or more than 60 days during the second and third quarters of 2021.
The reference period for the provision of seasonal self-employed workers is extended to 7 months, which requires an income of less than 6650 euros
Neither may a taxable net income of more than 6650 euroshave been obtained during the second and third quarter of 2021.
Those who meet these requirements will be able to access a benefit that, this time, will be only 50% of the corresponding minimum contribution base (that is, around 460 euros). They will also be exempt from paying their social security contribution.
Requirements to access the aid for cessation of activity for self-employed
If you are wondering what requirements must be met to access the aid for self-employed for cessation of activity, you should know that the benefit compatible with the activity is maintained for the self-employed who, meeting the essential requirements, have a turnover in the second and third quarters is 50% lower than in the same period of 2019.
On the other hand, those who do not meet the requirements to access this benefit or the ordinary cessation, may request an extraordinary benefit.
The amount of the benefit is 50% of the base with the possibility of increasing by 20% more in cases of large families or if the income of the self-employed is the only one of the family unit.
In this case, the requirements to apply for the cessation of activity aid for self-employed workers are:
- Be registered as self-employed
- Be up to date with the payment of contributions
- Not to have net returns in the second and third quarters of 2021 exceeding 6,650 euros.
- Credit in the second and third quarters of 2021 a taxable income to those in the first quarter of 2020.
Those who do not meet the requirements to access this benefit or the ordinary cessation, may request an extraordinary benefit in the same terms that were established in the royal decree law.
The amount,as we have indicated, will be 50% of the minimum base that corresponds to the activity carried out, and the benefit will be incompatible with:
- The receipt of remuneration for the development of an employed job.
- The performance of another activity on their own account.
- The perception of income from a company
- Obtaining a Social Security benefit (except that which the beneficiary was receiving because it was compatible with the performance of the activity he was carrying out).
For extraordinary benefits due to the suspension of activity, the payment of 50% of the regulatory base is maintained. They must be registered at least 30 days before the suspension of activity and maintain this discharge until September 30.
If you are self-employed and you have questions or queries about the benefits for cessation of activity, in AYCE Laborytax you have a large team of specialists willing to give you the advice you need.