Social Security pays the last payment of the extraordinary benefit to 1.46 million self-employed

The extraordinary benefit was approved last March for self-employed workers who were forced to close due to the state of alarm and for those who, being able to continue with their activity, had a drop in turnover of 75% compared to the average of the six months prior to the request. It represents a benefit equivalent to 70% of the regulatory base (a minimum of 661 euros per month) in addition to the total exemption from social security contributions.

During the three and a half months that this benefit has been in force, Social Security has paid 3,708 million euros in extraordinary benefits. Each beneficiary has received on average 723.59 euros per month (more than 2,600 euros in total if they accessed the benefit since March 14), an aid compatible with the activity and which is added to the temporary exoneration of social contributions, which on average has meant another 313.21 euros each month.

The General Treasury of Social Security has already returned the corresponding part of the quota for March and April to all the self-employed who were granted the benefit after having passed the collection order.

The benefit has covered 1.46 million self-employed workers at this time, which represents 45.52% of those who were on average high in May, with a certain heterogeneity both by sector and by geography.

Regarding territorial distribution, the provinces with the most self-employed protected by this benefit have been Santa Cruz de Tenerife (55.01%), Malaga (53.72%), Cádiz (53.65%), Las Palmas (52.19 %), Alicante (51.38%), Seville (50.08%), in addition to Ceuta (57.19%) and Melilla (53.53%).

As for the sectors with the most protected beneficiaries, in absolute terms, they have been trade, food and beverage services and specialized construction activities.

New aid

The extraordinary benefit – which can be requested until the end of July – ceases to be in force this Tuesday, June 30, but the Ministry of Inclusion, Social Security and Migration has agreed with the main associations of self-employed workers on new aid to replace the extraordinary benefit and that will apply from July 1.

Among the new measures are the reduction of social contributions during the next three months for the self-employed who have received the benefit, the compatibility of the activity with access to the ordinary benefit for cessation of activity and a special benefit for seasonal workers ,

Firstly, the beneficiaries of the extraordinary benefit will not have to pay the social contributions for the month of July and will have an exemption of 50% in August and 25% in September, which will mean a minimum saving of more than 500 euros per self-employed person. for the next three months.

For those whose activity is still very affected by the effects of the pandemic, they will be able to access the benefit for cessation of ordinary activity if their turnover in the third quarter is 75% lower than that of the same period last year, as long as its net returns in the period do not exceed the amount equivalent to 1.75 times the SMI for the quarter. This possibility, which will be compatible with the activity, supposes a minimum economic benefit of 930 euros per month per worker, since it supposes an economic benefit equivalent to 70% of the corresponding minimum contribution base.

To access this ordinary benefit compatible with the activity, it is not necessary to wait until the end of the quarter. Self-employed workers who consider that they may be beneficiaries of the benefit can request it at any time. Subsequently, a verification of compliance with the requirements will be carried out. The self-employed have the possibility, in addition, to waive the benefit during those three months if they see their activity recovered.

Also for the first time specific aid is established for the group of seasonal self-employed. In their case, they will be able to access the extraordinary benefit (70% of the regulatory base plus the exemption of social contributions) with effect from June 1 to October 31. The request is made through the mutual collaborators of Social Security and no minimum contribution period is required. In addition, it is compatible with any other Social Security benefit that the applicant has been receiving and is compatible with the performance of the activity that was carried out.

Self-employed workers whose sole job during the last two years would have been developed in the Special Regime for Self-Employed Workers or in the Special Regime for Sea Workers during the months of March to October and who have remained registered in the such schemes are self-employed for at least five months a year during that period. In addition, its income in 2020 may not exceed 1.75 times the SMI (23,275 euros).

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