Extraordinary cessation of activity benefits for self-employed workers regulated in Royal Decree-Law 11/2021 (5th package)

On May 28, Royal Decree-Law 11/2021 was published, on urgent measures to defend employment, economic reactivation and the protection of self-employed workers. This RD-law, among the support measures for the group of self-employed workers that it develops, establishes 5 new benefits.

The following table shows a summary of them:

Types of benefits and legislation

(*) To accrue the benefit from June 1, 2021, the application must be submitted between on June 1 and 21 (both inclusive).

The main changes and points of interest compared to its predecessors of the RD-law are summarized below. 2/2021:

Exemption from contributions in favor of self-employed workers who, as of May 31, 2021, were receiving any of the benefits regulated in arts. 6 or 7 of Royal Decree-Law 2/2021, of January 26, on the reinforcement and consolidation of social measures in defense of employment (Art. 5. RD-Law 11/2021):

The exemption from fees is established for self-employed workers who have been receiving regulated benefits in the arts. 6 and 7 of RD-law 2/2021 until 05/31/2021 in the following amounts:

• Exemption of 90% of contributions corresponding to June 2021.
• Exemption of 75% of contributions corresponding to July 2021.
• Exemption of 50% of the contributions corresponding to August 2021.
• Exemption of 25% of the contributions corresponding to September 2021.

The registration status must be maintained until 09/30/2021.

The base will be determined based on what you received up to the time of access to the previous benefit.

These exemptions are incompatible with the receipt of any of the new extraordinary benefits for cessation of activity (regulated in articles 6 to 9 of RDL 11/2021).

If you receive the benefit regulated in art. 6 of this RD-law (suspension of activity), the exemption will once again be applicable from the moment the worker is forced to have to contribute again.

The contribution exemption IS NOT MANAGED BY THE MUTUAL, it is managed directly by the General Treasury of Social Security (TGSS). Any questions about this aid should be sent to the TGSS.

Extraordinary cessation of activity benefit for self-employed workers affected by the temporary suspension of all activity as a result of resolution of the competent authority as a measure to contain the spread of the COVID-19 virus (Art. 6. RD-law 11/2021 and Second Transitional Provision):

This benefit is intended for self-employed workers who are forced to suspend all their activities , as a consequence of a resolution adopted by the competent authority as a measure to contain the spread of COVID-19. Both those whose activity has been suspended as of June 1, 2021, and those who had it previously suspended and had not requested it before June 1, 2021, will be able to access this benefit.

Both those who have their activity suspended as of June 1, 2021, and those who had it previously suspended and had not requested it before June 1, 2021, will be able to access this benefit.

The effects and dates of requesting this benefit must be in line with the second transitional provision, and the following circumstances may arise:

1. Resolution to suspend activity prior to June 1:

• If submitted until June 21 of June (included), the benefit will accrue from June 1.
• If it is submitted after June 22 (inclusive), the benefit will accrue from the 1st of the month following receipt of the application.

2. Resolution of suspension of activity as of June 1, will always be resolved by applying art. 6 of RDL 11/2021:

• If it is presented within 21 calendar days following the publication of the suspension resolution, the benefit will accrue from the day following the date on which the suspension is declared.
• If it is submitted after the previous deadline, the benefit will accrue from the 1st of the month following receipt of the request.

In the rest of the issues it is very similar to the extraordinary benefit of suspension of the activity regulated in art. 5 of RD-law 2/2021, overcoming the following issues:

• The amount to be received as a general rule goes from 50% to 70% of the minimum contribution base that corresponds to the activity carried out (there are no longer benefits for large families, although the reduction to 40% is maintained when there is more than one beneficiary of this benefit within the cohabitation nucleus).
• Applications submitted on time will be exempt from contributions from the 1st of the month in which the suspension resolution is published, while those submitted after the deadline will be exempt from contributions from the 1st of the following month in which the suspension resolution is published.

Benefit for cessation of activity compatible with self-employment (Art. 7.RD-law 11/2021):

This benefit is aimed at those self-employed workers who anticipate that during the coming months they will not recover the levels of activity prior to the crisis situation caused by the pandemic and who have a minimum of contributions for the contingency of cessation of activity.

Most of the requirements and conditions are similar to those established in the provision regulated in art. 7 of RD-law 2/2021. The main new features are:

• Applications submitted after June 22 (inclusive) will take effect from the 1st of the month following having been requested (previously it was from the following day).
• The benefit lasts, at most, until September 30.
• A reduction in taxable income from self-employed activity of more than 50% with respect to the same period in 2019 must be accredited during the period between the 2nd and 3rd ^{quarter of 2021} .
• Expect to not obtain during the 2nd and 3rd ^st quarter of 2021 tax-countable net returns exceeding €7,980 .
• In the case of workers who pay taxes by objective estimate, the reduction in income may also be considered accredited based on the reduction in the average number of workers affiliated with the CNAE for each activity, comparing the 2nd and 3rd ^er quarter of 2021 with the same period in 2019.

Extraordinary cessation of activity benefit for those self-employed workers who are active and as of May 31, 2021 were receiving any of the cessation benefits of activity provided for in articles 6 and 7 of Royal Decree-Law 2/2021, of January 26, on the reinforcement and consolidation of social measures in defense of employment and cannot give rise to the right to the ordinary benefit for cessation of activity provided for in article 7 of this Royal Decree-Law (Art. 8. RD-Law 11/2021)

This benefit is aimed at those self-employed workers who, at May 31, 2021, were receiving any of the benefits regulated in arts. 6 and 7 of RDL 2/2021 and cannot be beneficiaries of what is regulated in art. 7 of RD-law 11/2021.

Most of the requirements and conditions are similar to those established in the provision regulated in art. 6 of RD-law 2/2021. The main new features are:

• The benefit lasts until September 30 at most.
• The obligation to be up to date with labor and social security obligations is included when there are employees in charge.
• The exemption from fees included in art. 6 of RD-law 2/2021, instead the Mutual Fund will pay, along with the benefit, the amount corresponding to the common contingency fees.
• No net income from your self-employed activity exceeding €6,650 may be obtained in the 2nd and 3rd ^er quarter of 2021 .
• A reduction in taxable income from self-employed activity must be accredited during the 2nd and 3rd ^er quarter of 2021 compared to the first quarter of 2020.
• In the case of workers who pay taxes by objective estimate, the reduction in income may also be considered accredited based on the reduction in the average number of workers affiliated with the CNAE for each activity, comparing the 2nd and 3rd ^er quarter of 2021 with the same period of 2019.

Extraordinary cessation of activity benefit for seasonal workers (Art. 9.RD-law 11/2021):

For this benefit, seasonal self-employed workers are considered to be those who:

• Their only job throughout the years 2018 and 2019 and who had been developed in the Special Regime for Self-Employed Workers or in the Special Regime for Sea Workers, for a minimum of four months and a maximum of seven , in each of the years. And, furthermore, at least 2 of those months must have been between the months of June and September of each year.

Those who have also worked as an employee in the years 2018 and 2019 will not be excluded from this condition, as long as registration as an employee does not exceed 120 days throughout these two years.

• They have not been registered, or assimilated to registration, as an employed worker in the corresponding Social Security regime, more than 60 days during the 2nd and 3rd ^er quarter of 2021 .

Most of the requirements and conditions are similar to those established in the provision regulated in art. 8 of RD-law 2/2021, with the following reservations:

• Do not expect to obtain, during the 2nd and 3rd ^er quarter of 2021 , tax-countable net income that exceeds €6,650 (both self-employed and employed).
• The maximum duration of the benefit will be until September 30, 2021.

The benefit requested until June 21 (inclusive) will take effect from June 1, while those presented outside the aforementioned period will accrue from the 1st of the month following the request.