Latest Labour News for Freelance Workers in 2019

As of January 1st, 2019, the Royal Decree Law 28/2018, of December 28th, introduces very relevant labour developments for the revaluation of public pensions and other urgent measures in social, labour and employment matters.

We highlight here what will affect freelance workers:

  • Flat rate.
  • Greater cover for the self-employed: with obligation to contribute for:
  1. Professional Contingency> Work-related accident
  2. Cessation of activity> Unemployment of the self-employed
  3. Training.
  • Medical leave. The fee will not be paid as of the 61st day of the sickness leave.
  • Bogus freelancers.

Does the Flat Rate continue?

Yes, the Flat Rate continues for freelance workers during 2019. But, with a fee increase, which goes from 50€ in 2018 to 60€ during the first 12 months, from January 1st 2019.

For the rest of self-employed individuals, the fee is increased from 278.87€ / month to 283.30€ / month, with the minimum base of 932.70€ / month to 944.35€ / month.

The autonomous company goes from a fee of 357€ / month for a base of 1,199.10€ / month to a fee of 364.22€ / month, with a base of 1,214.08€ / month.

Freelance ladies, within 24 months after the maternity benefit, may obtain a flat rate of 60€ / month for 12 months, without the need to cease their activity.

Get the information you need from Pérez Parras Economists & Lawyers Firm in Málaga and Nerja.

The Firm Pérez Parras Economists & Lawyers help freelance workers with their procedures

Freelance workers are welcome to contact our office of Economists and Lawyers in Málaga and Nerja for help of any kind!

What is the reason for the fees increase to the Flat Rate?

As of 2019, independently of the annual revaluations / increments, there is an increase in the fees of self-employed people who benefit from the Flat Rate.

Now, the self-employed person has the new obligation to contribute for:

professional contingencies,
an accident at work, while previously this contribution was optional

The cover for cessation of activity and training will remain optional for this group.

Is it obligatory to contribute for such contingency?

Yes, from January 1st, 2019.

What other coverages does the RD 28/2018 Law introduce?

As of January 1st, 2019, ALL  freelance workers will contribute according to:

  • professional contingencies,
  • cessation of activity
  • and professional training,

as long as they are not getting the Flat Rate.

The Flat Rate beneficiaries only get obligatory cover for professional contingency & work related accident, while the reduction is valid.

The aim is to offer greater cover to self-employed workers who increase their contributions.

What does it mean for a self-employed person to pay for professional contingencies?

Now, it means receiving  75% of the Regulatory Base of the month prior to the leave, from the day after the leave; only when the leave is due to an accident at work.

Previously, the self-employed person also had the right to receive a benefit in case of accident. But its calculation was made without taking into account whether it was a work accident or a common illness. Now, he does not get any benefit for the first three days of leave. Thereafter,  from the fourth to the twentieth day he will get 60% of the regulatory base and from the twenty-first day onwards, 75%.

In addition, the rule is that the self-employed worker on medical leave will not pay the autonomous fee from the second month of sick leave, that is, from the 61st day of medical leave.

Cessation of activity:

This cover for “self-employed unemployment” will be improved. It is expected that the access measures will be relaxed and the duration will be extended from 12 to 24 months.

Training:

Another aspect that is introduced is continuous training, something necessary for the self-employed. It will allow them to recycle and update their knowledge while, at the same time, reducing the cost of training.

Bogus freelancers:

In the wake of the crisis, the proliferation of self-employed workers has become evident. The government intends to get tougher through greater sanctions for the fraudulent use of this status.  As a deterrent measure, the government will establish a penalty ranging between 3,126.00 € and 10,000.00€.

Freelance workers are affected by taxes

Too many taxes can drown you. Count on our Economists and Lawyers office to help you!

Throughout 2019, we will see the effects of these measures and the development that is yet to come from any of them. As usual, the firm of Pérez Parras Economists & Lawyers in Málaga and Nerja will keep you informed.