When a self-employed person makes the decision to close his business, he should know that Social Security allows apply for the benefit for cessation of activitywhich is popularly known as “unemployment benefit for the self-employed”. It is an aid that self-employed workers receive when the activity for which they registered with the RETA comes to an end. Since 2019, these professionals are required to pay contributions for cessation of activity.
It is also necessary to emphasize that, as established by article 327 of the General Law of Social Security after its last modification, It is possible to access the benefit in cases of temporary closure.
In order to access your application, you must meet a series of requirements, and you must be affiliated and in good standing with the RETA or equivalent, in addition to having at least twelve months of contributions for cessation of activitythese must be included in the two years prior to and immediately following the situation.
You must also be in a legal situation of cessation of activity and prove your availability to re-enter the market, in addition to not reaching the ordinary age that gives rise to the right to a contributory retirement pension in the case of a definitive terminationLikewise, it is required to be up to date with the payment of Social Security contributions.
Self-employed persons can request the cessation of activity when a temporary or permanent cessation occurs. for economic, productive, technical or organisational reasons. This can be requested when a business is closed or transferred and if there have been losses of more than 10% of the income obtained; when administrative or judicial executions occur when there are debts exceeding 30% of the income from the previous year; if there is a court declaration that prevents the activity from continuing or when it is necessary to close the business due to force majeure.
How much do self-employed workers receive with the cessation of activity benefit?
As regards the Amount of the benefit for cessation of activity for self-employed workersIt should be noted that this represents 70% of the regulatory base calculated according to the average of the bases on which the self-employed professional has paid contributions during the previous twelve months.
This percentage will amount to minimum of 80% of the IPREM if you do not have children in your careand even 107% if you have themThe maximum amount will be 175% of the IPREM, while if you have one dependent child the amount rises to 200% and, with two or more dependent children, the maximum will grow to 225%.
The benefit for cessation of activity will be suspended due to the imposition of a sanction, for carrying out work for twelve months or more, whether self-employed or employed, or for exhaustion of the deadline for submission.
Source: www.lainformacion.com
