The system for self-employed workers has certain peculiarities that differentiate it from the system for employed workers, even in aspects in which they are protected in both, such as situations of unemployment or assimilated.
Because, just as salaried workers receive unemployment after losing a job (as long as they meet the necessary requirements for it), the self-employed have a benefit that comes to their rescue in the situations closest to unemployment that exist within their regime: the benefit for cessation of activity that can be received in situations of cessation of activity.
This right appears widely regulated in the , which speaks of providing protection to the self-employed “in the situation of total cessation of the activity that caused the registration in the special regime, despite being able and wanting to carry out an economic or professional activity for profit” , as explained in its article 327.
When can the benefit for cessation of activity be collected?
In order for the self-employed person to collect the benefit for cessation of activity, they must demonstrate that, indeed, they are in a situation of cessation of activity. The law explains that this situation comes in different ways:
-When there is a concurrence of economic, technical, productive or organizational reasons that make the development of the activity unfeasible. This happens when the losses are at least 10% of the income, when the foreclosures of debts mean 30% of the income of the previous year or when a bankruptcy declaration takes place that prevents maintaining the activity.
-For reasons of force majeure that determine the cessation of activity.
-For the loss of the administrative license, provided that the maintenance of said license is essential for the development of the activity.
-Due to gender violence determining the cessation of activity.
-Due to divorce or separation with a court ruling provided that the self-employed exercised family help functions when registered with the Social Security.
The requirements to collect the benefit for cessation of activity
Apart from the essential requirement of being in a situation of cessation of activity, to collect this unemployment the self-employed must prove other requirements that are equally essential for collection:
-Be affiliated with the Special Scheme for Self-Employed Workers (RETA) or the Special Scheme for Sea Workers).
-Subscribe the commitment of activity by which it will not be possible to refuse job offers considered valid.
-Not having the ordinary retirement age or reaching it without being entitled to a contributory retirement pension.
-Be up to date with the payment of Social Security contributions. If you weren’t at the time, you have 30 days to do so.
-Proof of a prior contribution of at least 12 months.
How long is the benefit for cessation of activity charged?
The minimum contribution time needed to collect a benefit for cessation of activity is one year, but if that contribution is increased, the self-employed worker will accumulate more duration. To have the maximum you will need up to four years of contributions:
-From 12 to 17 months of contributions give the right to four months of benefits.
-From 18 to 23 months of contributions give the right to six months of benefit.
-From 24 to 29 months of contributions give the right to eight months of benefits.
-From 30 to 35 months of contributions give the right to 10 months of benefits.
-From 36 to 42 months of contributions give the right to 12 months of benefits.
-From 43 to 47 months of contributions give the right to 16 months of benefits.
-From 48 months of contributions onwards they give the right to 24 months of benefits.
What is the amount of the benefit for cessation of activity
But, how much is the amount of the benefit? The General Social Security Law explains that it will be 70% of the worker’s regulatory base. This regulatory base will result from the calculation of the average of the contribution bases of the 12 months prior to the situation of cessation of activity. However, the regulations contemplate some minimum amounts:
-Of 80% of the IPREM (Public Indicator of Multiple Effects Income) for people without children, increased by one sixth.
-Of 107% of the IPREM for people with children, increased by one sixth.
At the same time, there are maximum amounts that cannot be exceeded:
-Of 175% of the IPREM for people without children, increased by one sixth.
-200% of the IPREM for people with a dependent child, increased by one sixth.
-225% of the IPREM for people with two or more dependent children, increased by one sixth.
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