New measures to support self-employed workers in Spain

The new package of measures to support self-employed workers modifies and updates legislation on self-employment. Among the most important measures, include:

  • The flat rate for self-employed workers: the rate is fixed at 50 Euros for six months. However, the incentive is extended to self-employed workers who initiate an activity on their own and subsequently hire workers as employees.
  • Extension of the capitalization of unemployment benefits: extending, regardless of the applicant’s age, the ability to capitalize 100% of unemployment benefits to facilitate the initiation of business activities.
  • Other measures: re-establishes any self-employed workers, of any age, to receive unemployment benefits with the Special Regime for Self-Employment of the Social Security System (RETA) — for a maximum of 270 days. Additionally, the period to resume unemployment benefits is extended from 24 to 60 months for all self-employed workers entitled to such benefits.
  • Expansion of incentives to family co-workers: bonuses are extended to family co-workers. That is to say, direct relatives of the self-employed owner who work for him or her (spouse, domestic partner and up to second-degree blood relatives) can enjoy a bonus on social security contributions for 24 months. During the first 18 months, the bonus remains at 50% of their contribution to Social Security, to which a new bonus of 25% will subsequently be added over the next six months.
  • Economically dependent self-employed workers (TRADE):  TRADES (workers receiving at least 75% of their revenue from a single client or company) may hire a worker under certain circumstances (maternity leave, paternity leave, etc.) to facilitate the conciliation of the self-employed worker’s work and family life and prevent the termination of the contract for just cause.

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Please note that this article is not intended to provide legal advice.

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