New aid for the self-employed and ERTE

Conten Table

New aid self-employed and ERTE

Royal Decree-Law 2/2021, of 26 January, on the reinforcement and consolidation of social measures in defence of employment has been published, with new aid for the self-employed and ERTE. We summarise below the measures included in terms of aid for the self-employed and ERTE (temporary lay-offs).

We will publish details of other relevant contents of the regulation as well as other aid published in other regulations this week.

Regarding the ERTEs

  • Force majeure ERTEs are automatically extended until 31/05/2021.
  • The three current types of ERTEs are maintained: those aimed at ‘ultra-protected’ (or ultra-limited) sectors and companies linked to their value chain; ERTEs to prevent activity; and ERTEs to limit activity.
  • It will be possible to move from an ERTE of impediment to one of limitation, without having to process a new ERTE. A communication to the labour authority and to the workers will suffice.
  • ERTEs based on economic, technical, organisational and production causes (ETOP) may be extended by submitting an agreement to that effect to the labour authority.
  • Social security exemptions/bonuses and the commitment to maintain employment are maintained. As well as the prohibition of dismissals, interruption of temporary contracts, distribution of dividends and overtime and outsourcing of activities when these are applied.

New aid for the self-employed

There are 4 different types of aid:

  • The benefit for suspension of activity: aimed at self-employed workers with a temporary suspension of all their activity due to an administrative decision. The amount of the benefit is 50% of the minimum contribution base. This amount is increased by 20% if the self-employed worker is a member of a large family. The self-employed will be exempt from paying social security contributions, although this period will count as having paid contributions and, if applicable, will be compatible with income from paid employment up to 1.25 times the SMI (1187.50 euros).
  • The benefit compatible with the activity: workers whose turnover in the first half of 2021 falls by 50% compared to the second half of 2019 may apply for this benefit. The amount of this benefit is the amount corresponding to their contribution base.
  • Extraordinary benefit: those who do not meet the requirements for accessing the above, may apply for an extraordinary benefit, the amount of which is 50% of the minimum contribution base, and are also exempt from paying contributions. The income limit in the first half of the year, in this case, is 1.2 times the SMI (€1,140).
  • The benefit for seasonal self-employed workers, which is 70% of the minimum base and requires an income of no more than €6,650 in the first half of 2021.

We are at your disposal if you need help in processing these new benefits for the self-employed and ERTE. Don’t forget to follow us on social media to receive this news and other articles of interest. You can find all the links in the top right menu of the website.

Photo by Tolga Ulkan on Unsplash

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