Self-employed unemployment: options and solutions when incomes are low

Being self-employed is synonymous with independence, flexibility and professional growth. However, it also entails certain challenges, such as economic instability and limited access to benefits in the event that the activity ceases to be viable. At Espai114, we understand the importance of having clear and useful information about the aid available to the self-employed. In this article, we explain how self-employed unemployment works and what alternatives exist if your income is low.

What is the benefit for cessation of activity?

The self-employed unemployment, or benefit for cessation of activity, is an economic aid designed for those workers who have had to close their business in a justified manner. Although it is not always easy to access, knowing the requirements and the application process can make all the difference in times of difficulty.

This benefit was created to offer greater security to the self-employed, who for years have demanded a more solid protection system, similar to that of employees. Although there are still important differences, the cessation of activity represents an advance in the social protection of this group.

Requirements to apply for unemployment for the self-employed

In order to access this benefit, it is necessary to meet certain requirements:

• Have contributed for cessation of activity for at least 12 consecutive months before ceasing activity.
• Be up to date with the payment of self-employed contributions.
• Justify that the closure of the business is due to valid reasons, such as significant economic losses, force majeure or loss of licenses.
• Not have reached retirement age.

If you meet these conditions, you can start the process to apply for this aid and have financial support for a certain time. It is important to remember that the application process may vary depending on the mutual insurance company with which you have contracted cessation of activity coverage, so it is always advisable to inform yourself well before starting the procedures.

How much is charged and for how long?

The amount of the self-employed person’s unemployment is equivalent to 70% of the regulatory base, which is calculated based on the average contribution of the last 12 months.

• If you have contributed for the minimum base, you will receive approximately 660 euros per month.
• The duration of the benefit depends on the length of time you have contributed: the minimum is 4 months and the maximum is 24 months.

In addition, in the case of self-employed workers with family dependents, there may be additional supplements that slightly increase the amount of the benefit. It should also be taken into account that, during the period of cessation of activity, the self-employed continue to contribute to Social Security, since a part of the benefit is used to cover this contribution.

Partial cessation of activity

Not all self-employed workers know that there is the option of requesting a partial cessation of activity. This allows you to reduce the working day and receive a part of the benefit without having to completely close the business. It is a useful alternative for those who are going through times of crisis and need to maintain at least part of their income.

The partial cessation of activity is especially interesting for those sectors where revenues may fluctuate depending on market demand, such as hospitality, commerce or professional services. In this way, the self-employed can continue to operate while recovering from a complicated economic situation.

What to do if you can’t pay the self-employed fee?

When incomes are low, facing the monthly self-employed quota can become a problem. Fortunately, there are bonuses that can help reduce this cost:

• Flat rate of 80 euros for the first 12 months. If your net income remains below the Minimum Interprofessional Wage (SMI), this reduced rate can be extended for another 12 months.
• Discounts for specific groups, such as those under 30 years of age, women under 35 years of age and self-employed workers in rural areas, which can extend the reduced rate up to 24 months.
• Temporary exemptions in cases of prolonged illness or exceptional situations that prevent the development of the activity.

Can I invoice without being self-employed?

If you do sporadic work and need to issue invoices without being registered in the Special Regime for Self-Employed Workers (RETA), you should bear in mind that the Social Security could consider that there is “habituality” in the activity and require you to register as self-employed. This could involve late payments and possible penalties.

However, there are alternatives for those who wish to invoice without registering. One option is the Infoautónomos Priority Club, a service that offers tools and resources for independent professionals. Its annual subscription costs 60 euros and provides access to invoicing guides, financial management templates and online seminars on taxation and entrepreneurship.

Another alternative is to work through billing cooperatives, which allow invoices to be issued legally without the need to be registered with the RETA. In this case, the self-employed person becomes an employee of the cooperative on a one-off basis, which allows them to comply with tax obligations without having to assume the full cost of the self-employed quota.

If you are self-employed and are concerned about periods of economic instability, it is essential that you know the options available to ensure your financial stability. From Espai114, we encourage you to find out more and explore the solutions that best suit your situation. Having the right knowledge will allow you to make strategic decisions to maintain your professional activity without compromising your economic well-being.

In addition, keeping up to date with the latest developments in terms of contributions and aid for the self-employed can make all the difference in the management of your business. At Espai114, we are committed to providing you with support and resources so that you can continue to develop your activity in a sustainable and profitable way.

We are the Badalona Business Centre, to give visibility and opportunities to your business. At Espai 114 we form a team together; We want to inspire you and accompany you.