Are you aware of your Self-employment benefits? Knowledge is power.
As a consequence of the expansion of the Covid19 and the state of alarm decreed on March 14th, the Government has published a Royal Decree-Law through which a number of urgent extraordinary measures are established to confront the economic and social impact of this disease.
Freelancers have been hit especially hard, since they are mostly self-reliant and there is no social benefit net in place catching them as there is for employees.
Self-employed people have now been given the option to apply for a benefit for ceasing activity caused by a situation that is in any case involuntary, with more flexible conditions than usual to be able to access it. This benefit is somewhat similar to unemployment benefit for employees with an employment contract.
Thus, exceptionally, and for a limited period of one month, from the date of entry into force of Royal Decree 463/2020 of 14 March, which declares the state of alarm for the management of the health crisis situation caused by COVID-19, or until the last day of the month in which the state of alarm ends, if it lasts more than one month.
Who gets Self-employment benefits?
Self-employed workers whose activities are suspended, in accordance with the provisions of the aforementioned Royal Decree, or, otherwise, when their invoicing in the month prior to that for which the benefit is requested is reduced by at least 75 percent in relation to the average invoicing of the previous semester will be entitled to the extraordinary benefit for cessation of activity provided that they meet the requirements.
What are the requirements for Self-employment benefits?
To be affiliated and registered, on the date of the declaration of the state of alarm, in the Special Social Security Scheme for Self-employed Workers or where appropriate, in the Special Social Security Scheme for Sea workers.
In the event that their activity is not directly suspended by virtue of the provisions of Royal Decree 463/2020, of 14 March, prove that their turnover has been reduced by at least 75 per cent in relation to that of the previous six-month period.
Be up to date with the payment of Social Security contributions. However, if on the date of the suspension of the activity or the reduction of the invoicing this requirement is not fulfilled, the managing body will invite the self-employed worker to pay the contributions due within a non-renewable period of thirty calendar days.
In addition, the Government also plans to approve a line of guarantees on behalf of the State for companies and the self-employed of up to EUR 100 billion, covering both loan renewals and new financing by credit institutions, financial credit establishments, electronic money institutions and payment institutions, to meet their needs arising from, among others, invoices, working capital requirements or other liquidity needs, including those coming from financial or tax obligations, to facilitate the maintenance of employment and to alleviate the economic effects of COVID-19.
For more information, check back regularly on Lexidy Law Boutique coronavirus pages.
If you are self-employed worker and the crisis produced by the Covid19 has put you in a difficult financial situation and you consider you can benefit from these benefits, it will be our pleasure to inform you in further detail about the process and how to apply for it, as well as to assist you through the application process.