You may also consult the Processes and Procedures section for a simplified version
What is the termination of activity benefit for self-employed workers?
In accordance with Law 32/2010 of 5 August, self-employed workers have a specific system to protect them in the event of termination of activity.
This protection includes the payment of a financial benefit every month due to termination of activity and Social Security contributions for common contingencies.
The financial benefit due to termination of activity is supplemented with training and labour market insertion activities to help them re-join the workforce, managed by the Public Employment Services of the Autonomous Communities or by the Social Marine Institute.
What requirements must be fulfilled to access the benefit for termination of activity?
You must be a self-employed worker included in the Special System for Self-employed Workers (RETA), including workers in the Special System for Self-employed Agricultural Workers (SETA), who start the contribution for termination of activity from 1 January 2012 and to economically-dependent self-employed workers (TRADE), or else be a Self-employed Worker or shipowner included in the Special System for Sea Workers, and must also:
- Be affiliated and registered with Social Security, have professional contingencies covered and be up-to-date on the payment of their Social Security charges.
- Have a minimum contribution period for termination of activity of twelve continuous months immediately preceding the termination, with the month in which the event that caused the termination of activity being included in this calculation.
- The termination of the worker's activity must be the result of economic, technical, production or organisational reasons, force majeure, loss of administrative licence, gender violence, divorce or separation agreement and be duly justified.
- Sign the activity commitment to maintain the benefit in order to carry out training, professional guidance and promotion of entrepreneurial activity actions to which the relevant Public Employment Service may call them, as well as for the purposes of fulfilling the obligations set forth in articles 17.1 g) and h) of Law 32/2010 of 5 August.
- Be under the ordinary retirement age, unless they do not have proof of the contribution period required for this.
- That none of the incompatibilities set forth in Law 32/2010 of 5 August, exist.
Where should the application be submitted and what is the deadline?
The benefit for termination of activity application should be submitted to the Mutual Society which covers the worker's professional contingencies or to the Public State Employment Service if they are covered by the INSS or to the Social Marine Institute if this is the entity that covers such professional contingencies.
The application can be submitted up to the last day of the month following the month in which the activity terminated.
The application must be accompanied by the required supporting documentation.
Duration of benefit payments
As a rule the period during which benefits are provided is calculated in accordance with the worker’s age and the periods during which social security contributions had been paid by the worker during the 48 months prior to becoming legally unemployed; the table below sets out how these calculations are made:
|Months in which contributions were paid||Duration of benefits payments for those under the age the of 60||Duration of benefits payments for those over the age the of 60|
|From 12 to 17 months||2 months||2 months|
|From 18 to 23 months||3 months||4 months|
|From 24 to 29 months||4 months||6 months|
|From 30 to 35 months||5 months||8 months|
|From 36 to 42 months||6 months||10 months|
|From 43 to 47 months||8 months||12 months|
|With 48 months||12 months||12 months|
Amount of benefit payments
The amount of benefits paid will be 70% of the base pension, which is calculated on the basis of the worker’s average income contributions during the 12 months prior to becoming legally unemployed.
The maximum amount will be 175% of the Public Indicator of Multiple Effect Income (IPREM), except in the case that the worker has one or more children in their care, in which case the amount will be either 200% or 225% respectively of the aforementioned indicator.
The minimum amount will vary from between 107% to 80%, depending on whether or not the self-employed worker has children in his care.
The minimum amount will not be applied to self-employed workers who pay contributions and earn less than the minimum income.
Management of benefit payments
Benefit payments will be managed by the Mutual Society which covers the worker’s professional contingencies, or by the Public Service of State Employment if the worker is covered by the INSS, or by the Social Marine Institute if it is the entity that covers the aforementioned professional contingencies.
The worker will receive their benefit payments from the first day of the month following that in which their employment was terminated, so long as the application is submitted in time.
Requirements for self-employed workers:
- Undertake to pay contributions corresponding to unemployment benefit.
- Submit an application for unemployment benefit to the relevant Management Entity.
- Supply the necessary documents for unemployment benefit to be granted.
- Not to undertake employed or self-employed work during the period they are in receipt of unemployment benefit.
- Sign off from unemployment benefit in the event that unemployment benefits are suspended or expires, or that a worker’s situation ceases to satisfy the conditions required for unemployment benefit.
- Adhere to the requirements of the activity agreement.
- Repay any unduly received benefit payments.
- Attend appointments with the unemployment benefit management entity and be prepared to attend activities with the Public Service of Employment in the relevant Autonomous Community.
- Participate in specific activities related to professional motivation, information, advice or training.
Suspension and expiry of benefit payments
Benefit payments will be suspended in the event of any sanction being imposed for a minor or serious infringement of the law, for being sentenced to prison, for undertaking self-employed or employed work during a period of under 12 months, and for taking up residence in a Foreign Country for an uninterrupted period of under 12 months for the purposes of seeking or undertaking work..
Benefit payments will expire at the end of the stipulated period for their payment, as well as in the event of a worker undertaking employed or self-employed work for 12 months or more, incurring a sanction or any of other the reasons listed in Law 32/2010 of 5 August.