An extraordinary benefit due to end of business has been approved for those freelancers who are affected by the declaration of State of Emergency due to COVID-19.
This measure set out to help freelancers has been approved by Royal Decree-law 8/2020, of 17th of March. It states some extraordinary urgent measures to confront the economic and social impact of the current health crisis, notably articles 17 and 33.
Requirements to have access to the special benefits for freelancers
Article 17 of the Royal Decree establishes that those freelancers who are affected by the State of Emergency who meet the following requirements will be entitled to receive an extraordinary benefit for end of business.
- Be member and registered with the Social Security Special Regime for Self-Employed workers or Freelancers (RETA for its Spanish Acronym) or the Social Security Special Regime for Seafarers at the date the State of Emergency was declared.
- End of business activity due to the State of Emergency; or if the business activity does not directly end as provided in Royal Decree 463/2020, proof of a decrease in invoicing of, at least 75% in relation to last semester.
- Be up to date in their Social Security payments.
Characteristics of the benefits
The extraordinary benefits due to end of business activity for freelancers will increase to 70% of the regulatory base or 70% of the minimum RETA base.
The extraordinary benefits due to end of business activity for freelancers will last for one month. If the State of Emergency lasts longer than a month the benefits could be extended to the last day of the month in which the State of Emergency comes to an end if necessary.
This benefit will count as part of the contribution period, therefore it will not decrease the contribution time the beneficiary might be entitled to in the future due to end of business activity.
It should be highlighted that this benefit is not compatible with any other Social Security benefits.
