June 13, 2021

The reasons for the self-employed to reject Escrivá’s latest proposal to extend benefits


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The latest proposal by the Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, on the extension of benefits for the self-employed for cessation of activity has had an absolute rejection for ATA. Its president, Lorenzo Amor, yesterday described the proposal as “unacceptable”, since in his opinion “Leaves many freelancers out”. For its part, the other self-employed organization, UPTA, did qualify the Government’s proposal as positive, considering that “no self-employed person who is receiving an extraordinary cessation of activity compatible with the activity in progress will be left without the protective system.”

In a document, to which ABC has had access, ATA sets out its reasons for rejecting what Escrivá has offered. In the last proposal sent to the organizations of the self-employed, the benefit for cessation of activity compatible with self-employment will be available as of June 1, 2021 for the self-employed who as of May 31 were receiving said benefit and have not exhausted the expected benefit periods. Thus, they may continue to receive it until September 30, “provided that, during the second and third quarters of this year, they meet the requirements in this precept.” It is precisely in these requirements where ATA shows its most absolute rejection.

To calculate the reduction in income, the period of registration in the second half of 2019 will be taken into account and it will be compared with the proportional part of the income in the second and third quarters of this year in the same proportion. In addition, access to the benefit will require proving in the second and third quarters of 2021 a reduction of more than 50% of the returns recorded in the second and third quarters of 2019, as well as not having obtained net returns above 6,650 euros in 2021. In addition, the self-employed who have been receiving the benefit as of May 31 “may only be entitled to it if they had not consumed the entire period provided for in the General Social Security Law on that date.”

According to ATA, the benefits counter should be reset, because “85% have been contributing for cessation of activity since January 1, 2019”, which allowed them eight months of benefits. If the accountant it does not return to zero «they will not be able to access it most of the self-employed “, and recalls that” the self-employed have consumed their period of cessation of activity has not been voluntary, since the lack of economic activity has been imposed by the restrictions that the administration itself has decreed. ” In addition, they ask that the limit of net returns be 7,980 euros in the second and third quarters, as established in the previous extension.

On the other hand, Escrivá’s proposal also includes an extraordinary benefit for cessation of activity for the self-employed who exercise the activity and on May 31, 2021 received the extraordinary benefit for cessation of activity and cannot cause the right to the ordinary benefit of cessation of previous activity. This group will be able to access this extraordinary benefit provided that they are registered and up to date with the payment of contributions, do not have net returns in the second and third quarter of 2021 greater than 4,275 euros and credit in the second and third quarter of this year, income is lower than 75% of those in the same quarters of 2019. The amount will be 50% of the minimum base.

At this point, ATA defends that limiting the second and third quarter net returns to 4,275 euros assumes that the self-employed earn less than the minimum wage. That is why it asks for the same conditions as in the January agreement, where the limit was set at 6,650 euros.

In addition, another change that Escrivá proposes is that the perception of the benefit will be incompatible with the receipt of a remuneration for the development of an employee’s job, with the performance of another activity on its own account, with the perception of income from an employee. society and with the receipt of a Social Security benefit, except for the one that the beneficiary received because it was compatible with the performance of the activity that he / she developed. In the previous extension, it was compatible with a remuneration for the development of an employee’s joba if this was less than 1.25 times the amount of the minimum interprofessional salary. A requirement that ATA asks to be in place.

This compatibility is reflected in the extraordinary benefit for cessation of activity for the self-employed affected by the temporary suspension of activity as a result of the approval of measures to contain the Covid. Specifically, the document says that, as of June 1, the self-employed who are forced to suspend their activity or maintain for the same reasons the suspension of their activity started prior to the indicated date, will have the right to an economic benefit . The amount of the benefit will be 70% of the minimum contribution base and the benefit will be incompatible with the receipt of a remuneration for the development of an employee’s work, unless the income from employed work is less than 1, 25 times the SMI.

It is also collected a 90% exemption from contributions corresponding to the month of June, 75% of those corresponding to July, 50% of those corresponding to August and 25% of those corresponding to September.

For these benefits to be applicable in the contribution, self-employed workers must maintain registration in the corresponding special Social Security regime until September 30, 2021. This exemption will be incompatible with receiving the benefit for cessation of activity in any of its modalities.

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