Cessation of Activity Benefits due to COVID-19 (2nd package of measures)
To alleviate the effects of the declaration of the state of alarm, a series of benefits and aid have been established for the group of self-employed workers, which are summarized below:
Types of benefits and legislation
| Regulations | Benefit | Purpose | Duration maximum |
|---|---|---|---|
| 1. RDL 8/2020 (article 17) | Extraordinary Cessation of Activity Benefit for those affected by the declaration of the state of alarm for the management of the health crisis situation caused by COVID-19. | Help financially self-employed workers during the state of alarm . | 3/14/2020 - 6/30/2020 |
| 2. RDL 24/2020 (article 9) | Benefit for cessation of activity and self-employment. | Financially help self-employed workers in the transition to the “new normal” once the state of alarm ends. | 1/7/2020 - 30/9/2020 |
| 3. RDL 24/2020 (article 10) | Extraordinary Cessation of Activity Benefit for seasonal workers | Help seasonal self-employed workers who , not being registered at the time of the declaration of the state of alarm, could not access the extraordinary benefit . | 1/6/2020 - 30/9/2020 |
| 4. RDL 24/2020 (article 8) | Exemption from contributions in favor of self-employed workers who have received the extraordinary benefit for cessation of activity during the state of alarm declared by RD 463/2020, of March 14 | Support self-employed workers in the transition to the “new normality” once the state of alarm ends , reducing the weight of Social Security contributions. | July 2020 - sept. 2020 |
What benefits can I request?
1. If you need help to compensate for the losses suffered during the state of alarm , either because you have been forced to cease your activity or because you have suffered a loss of turnover greater than 75% compared to the previous situation, you still have until July 31 of 2020 to request the Extraordinary Benefit for Cessation of Activity for those affected by the declaration of the state of alarm, for the management of the health crisis situation caused by COVID-19.
Application deadline: until July 31, 2020.
2. If you have been a beneficiary of the CATA.COVID-19 extraordinary benefit until June 30, 2020 and expect a reduction of more than 75% in billing for the third quarter (compared to the previous year) and do not reach net income greater than €5,818.75 in said period, you may request the new benefit for Cessation of Activity and self-employment.
Likewise,“for the purposes of accreditation of the billing reduction requirement, it will be understood that self-employed workers have experienced this reduction whenever the average daily number of active workers affiliated with the Social Security system in the corresponding economic activity, expressed in four digits (CNAE), during the period to which the benefit corresponds, is lower by more than 7.5 percent than the average daily number corresponding to the second half of 2019.”
Application deadline: until September 29, 2020 (*).
3. If you are a seasonal self-employed worker who was not able to access the extraordinary CATA.COVID-19 benefit, you will now be able to access a new equivalent benefit, which has been created in order to offer the same possibilities as other self-employed workers.
Application deadline: until October 2020.
4. If you have been a beneficiary of the CATA.COVID-19 extraordinary benefit until June 30, 2020, you will be entitled to an exemption from your Social Security contributions according to the following detail:
a) 100% of the contributions corresponding to the month of July 2020.
b) 50% of the contributions corresponding to the month of August 2020.
c) 25% of the contributions corresponding to the month of September 2020.
This aid is not managed through the Mutual Fund and is incompatible with the Cessation of Activity benefit.
Application deadline:(probably applied ex officio by the General Treasury of Social Security).
(*) Issue subject to possible interpretation
