BUDGET clothing store Primark has announced plans to open another branch in Madrid next month – the chain's 61st retail outlet in Spain.
Self-employed workers' Covid financial help now starts at 50% income loss, down from 75%
21/01/2021
A PLANNED rise in self-employed persons' Social Security, or national insurance payments has been shelved until May instead of coming into force in January 2021, and the scope has been widened for those whose income is affected by the pandemic to claim.
Starting with last year's lockdown in March, sole traders, business owners or freelance workers had to show their income had reduced by at least 75% as a direct result of the Covid crisis before they were able to receive any State benefits – unlike employees who, as soon as they were temporarily laid off or 'furloughed', would receive the standard monthly dole payment of 80% of their gross salary for the first six months and 60% thereafter.
Now, though, self-employed workers only have to show a 50% loss in their income.
Benefit payments, funded by Social Security – including sick pay, maternity or paternity leave, and in the case of the Covid crisis, total or partial cessation of activity either temporarily or permanently – are based upon a 'fictitious' salary on which the worker pays 30% in a monthly fee.
The minimum Social Security fee payable by a self-employed worker is around €286 a month, based upon a 'fictitious wage' of €944 a month, but the next band up is based upon a 'hypothetical' salary of €4,000 a month, costing €1,200 in Social Security, with nothing in between.
This means that other than those traders and freelance professionals who are earning exceptionally high amounts – around two-and-a-half times the modal average employee take-home pay – the rest, above 80% of them, are only subscribed to the bottom band.
It means the maximum they can receive from the State for sickness, maternity or paternity, or cessation of activity is around €944.
For those whose income has dropped by 75% due to the pandemic, they will receive up to 75% of €944, and now, those whose earnings have fallen by 50% or more will receive about half of €944.
Any self-employed worker or business owner who is not able to continue with their activity as a direct result of the pandemic and its associated restrictions will be exempt from his or her monthly €286 payment, or €1,200 for the higher-band workers.
Spain's government had been introducing small, progressive rises to Social Security contributions, in order to cover extra contingencies such as being out of work.
The first increase, in 2020, was from €283 to €286, or 0.8%, and another rise of 0.9% was due in January 2021.
This has now been put back until at least May this year.
Payment for cessation of activity can now be claimed where it is recent, unlike, previously, where financial assistance was only available to those who reported a temporary or permanent cessation in full or in part between March and June 2020.
Related Topics
A PLANNED rise in self-employed persons' Social Security, or national insurance payments has been shelved until May instead of coming into force in January 2021, and the scope has been widened for those whose income is affected by the pandemic to claim.
Starting with last year's lockdown in March, sole traders, business owners or freelance workers had to show their income had reduced by at least 75% as a direct result of the Covid crisis before they were able to receive any State benefits – unlike employees who, as soon as they were temporarily laid off or 'furloughed', would receive the standard monthly dole payment of 80% of their gross salary for the first six months and 60% thereafter.
Now, though, self-employed workers only have to show a 50% loss in their income.
Benefit payments, funded by Social Security – including sick pay, maternity or paternity leave, and in the case of the Covid crisis, total or partial cessation of activity either temporarily or permanently – are based upon a 'fictitious' salary on which the worker pays 30% in a monthly fee.
The minimum Social Security fee payable by a self-employed worker is around €286 a month, based upon a 'fictitious wage' of €944 a month, but the next band up is based upon a 'hypothetical' salary of €4,000 a month, costing €1,200 in Social Security, with nothing in between.
This means that other than those traders and freelance professionals who are earning exceptionally high amounts – around two-and-a-half times the modal average employee take-home pay – the rest, above 80% of them, are only subscribed to the bottom band.
It means the maximum they can receive from the State for sickness, maternity or paternity, or cessation of activity is around €944.
For those whose income has dropped by 75% due to the pandemic, they will receive up to 75% of €944, and now, those whose earnings have fallen by 50% or more will receive about half of €944.
Any self-employed worker or business owner who is not able to continue with their activity as a direct result of the pandemic and its associated restrictions will be exempt from his or her monthly €286 payment, or €1,200 for the higher-band workers.
Spain's government had been introducing small, progressive rises to Social Security contributions, in order to cover extra contingencies such as being out of work.
The first increase, in 2020, was from €283 to €286, or 0.8%, and another rise of 0.9% was due in January 2021.
This has now been put back until at least May this year.
Payment for cessation of activity can now be claimed where it is recent, unlike, previously, where financial assistance was only available to those who reported a temporary or permanent cessation in full or in part between March and June 2020.
Related Topics
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