The Minister of Social Security has clarified that all self-employed workers, forced by the State of Alarm to terminate their business  or  have a 75% drop in income, are entitled to the supplementary allowance for cessation of activity.

With the entry into force of Royal Decree Law 8/2020, flexibility measures are established to enable access by self-employed workers to this supplementary allowance.

The group of professional experts that make up the Pérez Parras Economists and Lawyers Firm have been studying these measures as soon as they were published. Our aim is to guarantee a prompt management of this service to our self-employed clients.

Although there are still many qualms regarding the processing and resolution of this provision, we will endeavour to clarify doubts that have been raised.  We are also aware of the many changes that will continue to arise in the following days and weeks.

Who is responsible for the payment of this supplementary benefit?

The management of this benefit corresponds to the Mutual Insurances collaborating with the Social Security.

• What does this supplementary allowance consist of?

The self-employed workers may get 70% of the regulatory base for the duration of the Alarm State. For example, by contributing the minimum self-employed base of 944.40€, they would get a gross benefit of 661.08€.

• How long does this benefit last for?

The duration of the benefit is 1 month, extendable until the end of the state of alarm.

• What requirements must I meet to access the benefit?

Be affiliated and registered with Social Security at the date of the declaration of the alarm status. But, it is not necessary for the self-employed worker to withdraw from his business activity (Model 036 or 037), nor to de-register as a self-employed worker.

Exercise an activity that has been suspended due to Royal Decree 463/2020 or that the billing of the month prior to the request for the benefit is 75% lower than that of the previous 6 months.

Be up-to-date with all the Spanish Administrations. (If not, pay your debts!).

• How do I apply for this allowance?

You must fill out and sign the application form provided by the Mutual Insurance you are affiliated to.

• When can I request it?

If you appeal for it because your business is included in Royal Decree 463/2020, you can submit your request today.

If you apply due to the 75% income reduction, you can claim from April.

How long does it take to resolve my request?

The resolution period is 30 business days, although the application filing date will be recognised retroactively.

An important fact to keep in mind is that the self-employed worker CANNOT provide services while getting this benefit.

Our office of Economists & Lawyers in Malaga and Nerja  checks every day all new administrative information and measures that our clients can benefit from.

Therefore, if you are a freelancer and you are thinking of stopping your business activity but do not know if it is the right move, we will help you. Count on us!