News in the cessation of activity for self-employed persons approved by the Government
The Council of Ministers approved by Royal Decree-Law the four new modalities of cessation of activity benefit for self-employed persons. They are now available from February 1. The management of the payment of these aids corresponds to the Accident Mutual associated with the self-employed.
The Government gives the green light both to the extension of aid for self-employed persons until 31 May and to access to these four new modalities of cessation of business benefit. With these changes, aid will benefit more self-employed people who are being severely affected by the consequences of the pandemic.
The new Royal Decree-Law has been approved as a result of the consensus between the Government and the main associations of freelancers. The big novelty is the elimination of several requirements, which will facilitate access to aid:
- It is not necessary to have applied for the benefit before.
- The level of losses to be credited to access cessation of activity is reduced from 75% to 50%.
- Conditions are changed so that seasonal freelancers can benefit from the benefit.
The final text was published last week in the Official State Gazette (BOE).
Below, we explain the novelties that occur in the four modalities of cessation of activity.
1.- When an administration decrees the closure of business
Extraordinary cessation of activity for self-employed workers affected by a temporary suspension of all activity as a result of a resolution by the competent authority as a measure containing the spread of the COVID-19 virus.
It occurs when an administration decrees the closure of business, for example, in the case of hospitality. The self-employed concerned may apply for cessation of activity benefit for temporary suspension of all activity. In this case it has to be a total suspension, a reduction in capacity is not valid.
In this modality, the self-employed will charge 50% of the minimum contribution base (about 472.2 euros per month). And you will be exempt from paying the social security fee until the last day of the following month in which the closure is lifted, or May 31, 2021 (if this date is earlier).
2.- For those who were unable to access the above benefits
Extraordinary provision of cessation of activity for self-employed workers who cannot cause the right to the ordinary cessation of activity provided for in Article 7 of this royal decree-law or to the provision of cessation of activity regulated in Articles 327 and following the consolidated text of the General Law on Social Security, approved by Royal Legislative Decree 8/2015, of 30 October.
This modality is aimed at self-employed people who were unable to access the previous benefits of cessation of activity. In particular, the aid is intended for workers who do not fulfil the requirement to have quoted 12 months for cessation of activity. For example, this is the case for those with flat rates.
They will charge a minimum of 760 euros per month. The aid will be 50% of the minimum contribution base (about 472.2 euros per month). In addition, they will have the exemption from the fee.
3.- Cessation of activity compatible with self-employment
Right to the provision of cessation of activity compatible with self-employment.
Help goes to freelancers who have been unable to recover activity levels from their business and are not expected to occur in the coming months.
To access the benefit it is necessary to:
- Have quoted at least 12 months prior to the date of application for cessation of business benefit.
- That turnover has been reduced by 50% in the first half of 2021 compared to the second half of 2019.
- Self-employed persons who take this aid will be able to collect 50% of the contribution base. In addition, it is possible to combine the collection of the benefit with the employment (multiactivity). However, all established requirements must be met to do so.
4.- Improved conditions for seasonal freelancers
Extraordinary cessation of activity for seasonal workers.
New measures will make cessation of activity more accessible for seasonal self-employed people. These are self-employed people who worked as self-employed in 2018 and 2019 for a minimum of four months and a maximum of six months.
It is mandatory that two of the months where they have had to be discharged in the Special Regime of Self-Employed Workers (RETA) have been between January and June.
However, one of the improvements to this feature is that it does not require you to be enlisted in the RETA when you are enjoying it (usually these freelancers are unsubscribed during those months). The period in which the benefit is charged, the mutual period will be the one quoted by the self-employed. The amount of the aid will be 70% of the minimum base (660 euros per month).
