Cessation of Activity and Self-Employment Benefit

NEW! Article 9 of Royal Decree-Law 24/2020, of June 26, on social measures to reactivate employment and protect self-employed work and competitiveness of the industrial sector

Who can request it?

Those who were receiving until June 30 the extraordinary benefit for Cessation of Activity of art. 17 of the RDL. 8/2020 may request the benefit for cessation of activity provided for in art. 327 of the consolidated text of the General Social Security Law (LGSS), but without the need to prove that you are in a legal situation of cessation of activity.

With what requirements?

• Be registered in the Special Regime.
• Have covered a minimum period of 12 months of contributions for continuous Cessation of Activity and immediately prior to July 1, 2020 (*) and that said contributions have not already been computed for the recognition of a previous right of the same nature.
• Not having reached the ordinary age to qualify for the contributory retirement pension or, even having said age, not having accredited the contribution period required to access the retirement.
• Be up to date with the payment of Social Security contributions corresponding to the Special Regime or have a prior resolution from the TGSS on the deferral of owed contributions.
• At the time of requesting the benefit, you must comply with all labor and Social Security obligations that you have assumed in relation to the workers under your care, if you have them.

Additionally, they will have to prove a reduction in income of 75% in the third quarter of 2020 in relation to the same period in 2019, provided that they also comply with not having obtained during the third quarter of 2020, net returns greater than €5,818.75 ⁽¹⁾ . To determine the right to the monthly benefit, the net income for the quarter will be prorated, not exceeding €1,939.58 per month.

⁽¹⁾ In the event of permanently ceasing the activity before September 30, 2020, the limit of €5,818.75 will be taken proportionally to the duration of the activity (computing in its entirety the month in which the withdrawal from the special regime occurs).

When to request it and what effects will it have?

The benefit can be requested from July 1, 2020 to September 29, 2020 (*) and depending on the date it is presented it will have the following effects:

• Effect of July 1, 2020 if requested before July 15.
• Or with effect from the day following the request if requested later.

How long will it be perceived?

This benefit can only be received until September 30, 2020. From this date it can only continue to be received if all the requirements of art. 338 of the LGSS, for which a new application must be submitted to the mutual insurance company (*).

How will it affect the price?

The self-employed person, during the time he or she is receiving the benefit, must pay all of the contributions into the General Social Security Treasury (TGSS). The Mutual Fund will pay the worker, together with the benefit for cessation of activity, the amount of contributions for common contingencies that would have been payable if the self-employed person were not carrying out any activity.
 

When will the benefit end?

On September 30, 2020, unless the withdrawal from the special regime is carried out prior to that date (*).

How to request the benefit?

The request for the corresponding benefit in each case can be made through the Fraternidad-Muprespa Digital Office, at the following link:

If you do not yet have a user in the Digital Office, we recommend your application, through a simple procedure:

Self-employed persons not registered in the Digital Office

Self-employed persons who do not have a Digital Office user may also submit their applications without needing to register. Access without registration has been enabled through which they will be able to access the specific procedure, for which they must complete some basic information, NIF, membership number and date of birth.

Once the application has been processed, you will receive an email confirming your submission. Access without registration is available at the following Internet address: