Benefit for termination of activity of self-employed workers

Compulsory benefit for self-employed workers and seafarers; also for members of worker cooperatives and for corporate workers who have opted for this classification.

The cessation of activity can be definitive or temporary.

Payment of 70% of the regulatory base for twelve months of the last 24 months immediately prior to the legal situation of termination of activity.

*Exceptions:

For epigraphs 4º and 5º of section 1) of article 331) economic reasons according to RDL 13/2022, the Mutual will pay 50% of the contribution fee, which it will pay together with the benefit, while the self-employed worker must pay the remaining 50%.

• Be affiliated and registered in the Special Regime for Self-Employed or Self-Employed Workers or in the Special Regime for Sea Workers.
• Have covered the minimum contribution period for termination of activity (at least 12 months of contributions in the 24 months prior to the termination of activity).
• To be in a legal situation of cessation of activity ( deregistration in the Special Regime, except for the reasons of epigraphs 4º and 5º and total and partial temporary force majeure).
• In the case of definitive cessation of activity, if the self-employed person can access the retirement pension, he/she will not be able to access the benefit for cessation of activity.
• Be up to date in the payment of Social Security contributions.
• For the cases of headings 4 and 5 of 331.1.a), the self-employed worker may not engage in any other activity, except:
  • In the case of pluriactivity, where the self-employed worker may receive remuneration for the employed work that he/she had been performing, provided that the sum of the average monthly remuneration of the last four months immediately prior to the birth of the right to the benefit for termination and the benefit itself for termination of activity, results in an average monthly amount lower than the amount of the minimum interprofessional wage in force at the time of the birth of the right to the benefit for termination.
  • When he/she is going to carry out the same activity for which he/she causes the termination, as long as the net monthly income obtained while receiving the benefit does not exceed the amount of the minimum interprofessional wage or the amount of the base for which he/she has been contributing, if this is lower.
• If he/she has dependent workers, he/she must, prior to termination, comply with the guarantees and obligations with his/her workers, except in cases of temporary total and partial force majeure, as well as in the cases of terminations derived from the 4th or 5th epigraphs, it will not be necessary to deregister from the Regime.

Depending on the number of months contributed, the duration of the benefit will be as follows:

The application period ends on the last day of the month following the month in which the cessation of activity occurred.

Exceptions:

In applications for economic, technical, productive or organizational reasons, force majeure, gender violence, sexual violence, due to the will of the client, founded on justified cause and due to death, disability and retirement of the client, the term will begin from the date that has been stated in the corresponding documents accrediting the concurrence of such situations.

The right to the benefit, as a general rule, will occur on the day following the deregistration in the Special Regime, with the following exceptions of article 331 of the General Social Security Law:

• Section 1.a)
  • Epigraph 4: the effective date will be the first day of the month following the communication to the labor authority.
  • Epigraph 5: the effective date will be the first day of the month following that of the request.
• Force majeure: the day on which the concurrence of the force majeure is accredited.
• For loss of the administrative license, as long as it constitutes a requirement for the exercise of the economic or professional activity and it is not motivated by the commission of criminal infractions: the first day of the month following the one in which the leave takes effect as a consequence of the cessation.
• In cases of gender and sexual violence: the date indicated in the protection order or, failing that, the report of the Public Prosecutor’s Office, from which the cessation or interruption has occurred.
• For divorce or matrimonial separation, by judicial resolution, in the cases in which the self-employed person exercised family assistance functions in the business of his/her ex-spouse or of the person from whom he/she has separated, based on which he/she was included in the corresponding Social Security Regime: the first day of the month following the month in which the leave takes effect as a consequence of the cessation.

Payment in the event of filing after the legally established deadline

In cases of late submission, payment will be made from the date of submission of the application. The days between the date on which the application should have been submitted and the date on which it was submitted shall be deducted from the period of payment.

Example: in a case in which the date of the causal event is 31/05/2022 (effective date of cessation/deregistration) with the right to four months of benefit. The deadline for filing the application is 30/06/2022.

• Submission within the deadline:
  • Date of application: 08/06/2022
  • The 4 months of benefit will be recognized with effect from 01/06/2022 to 30/09/2022
• Submission after the deadline:
  • Date of application: 08/07/2022
  • The 4 months of benefit entitled to the benefit will be reduced by 7 days, which corresponds to the end of the legal deadline for submitting the application and the date of its submission (from 01/07/2022 to 07/07/2022). It is therefore paid from 08/07/2022 to 31/10/2022.

The amount of the benefit will be 70% of the regulatory base. For the cases of epigraphs 4 and 5 of article 331.1.a) and partial temporary force majeure, it will be 50%. It should be taken into account, except for the cases of items 4 and 5 and partial temporary suspension, that these benefits are subject to the limits of the Public Multiple Effect Income Indicator (IPREM) in the same criteria as the unemployment benefit.

The regulatory base of the economic benefit for termination of activity will be the average of the bases for which contributions have been paid during the twelve continuous months immediately prior to the legal situation of termination.

In the Special Regime for Sea Workers, the regulatory base will be calculated on the total contribution base for this contingency, without applying the contribution correction coefficients, and in addition, the mandatory closed periods approved by the competent authority will not be taken into account for the computation of the period of 12 continuous months immediately prior to the legal situation of termination of activity, provided that the benefit for termination of activity has not been received during those closed periods.

The Mutual Insurance Company will be responsible for 100% of the contribution of self-employed workers during the period of cessation of activity. Exception: in epigraphs 4 and 5 of article 331.1.a), the mutual insurance company will pay 50% of the contribution directly to the self-employed worker.

It may be suspended for the following reasons:

• During the period corresponding to the imposition of a sanction for a minor or serious infringement, under the terms established in the revised text of the Law on Infringements and Sanctions in the Social Order.
• While serving a sentence involving deprivation of liberty.
• During the period of self-employment or work for others, except in cases of cessation of activity provided for in sections 4 and 5 of article 331.1.a), or partial temporary cessation of activity arising from force majeure, which will be compatible with the activity that causes the cessation, under the terms provided for in article 342. 1 (the receipt of the economic benefit for termination of activity is incompatible with self-employment), and without prejudice to the extinction of the right to protection for termination of activity in the case established in article 341.1.c (for performing work as an employee or self-employed worker for a period equal to or longer than twelve months, in the latter case provided that it generates the right to protection for termination of activity as a self-employed worker).

In the event of suspension, the self-employed worker will be obliged to request the resumption of the suspension once the reason for the suspension has ended.

It shall terminate for the following reasons:

• By depletion of the term of duration of the benefit.
• By imposition of penalties under the terms established in the revised text of the Law on Infractions and Penalties in the Social Order.
• For performing work as an employee or self-employed worker for a period equal to or longer than twelve months, in the latter case, provided that it generates the right to protection for termination of activity as a self-employed worker.
• Upon reaching the ordinary retirement age or, in the case of self-employed workers included in the Special Regime for Sea Workers, the theoretical retirement age, except when the requirements for accessing the contributory retirement pension are not met. In this case, the benefit for termination of activity will be terminated when the self-employed worker meets the rest of the requirements for accessing said pension or when the term of protection expires.
• By recognition of a retirement or permanent disability pension, without prejudice to the provisions of Article 342.1 (the receipt of the economic benefit for cessation of activity is incompatible with self-employment).
• By transfer of residence abroad, except in the cases determined by regulation.
• Voluntary waiver of the right.
• Death of the self-employed worker.