The Government approves a new financial measures plan aimed at the self-employed

The Government has approved a new plan of economic measures to face the Covid-19, among all of these includes the relaxation of social benefits for self-employed workers who cease to work under certain conditions and the suspension of social security contributions, as well as exemption from the payment of contributions to those companies that, instead of laying off workers, take advantage of temporary layoffs (ERTE). With these measures, the Government guarantees that the self-employed will receive a benefit in case of economic difficulty. 

This measure will be available to self-employed workers whose activities have been suspended by the Royal Decree of 14 March, or if, during the month prior to the month in which they are going to apply for the benefit, they can prove that they have lost 75% of their turnover in relation to the monthly average for the last six months. In addition, it is essential that you are registered with theSeguridad Social(Social Security) on the day of the declaration of the state of alarm and that you are up to date with your payments. As an exceptional measure, you will be allowed to catch up within 30 calendar days before your application is rejected. 

Freelance will be charged 70% of the minimum regulatory base for which he is paying contributions. More than 80% of self-employed workers will pay the minimum, which means that they will be charged 661 euros per month. As for the duration, according to the Real Decreto(Royal Decree), it is established that it will be for one month, unless the state of alarm is prolonged, meaning, the duration of the state of alarm would be the period that would mark the time limitation of this measure. 

In addition, in order to facilitate the maintenance of employment and to alleviate the economic effects of Covid 19, the Ministry of Economic Affairs and Digital Transformation has approved a line of guarantees for companies and self-employed persons, guarantees for financing granted by credit institutions, financial credit establishments, electronic money institutions and payment institutions. They may grant up to a maximum amount of 100 billion. The ICO will extend this line of financing. 10 billion will be added to the net debt limit of this institution in order to provide additional liquidity to companies, especially SMEs and the self-employed. 

Sources: Abogacía Española, Cinco Días