Self-employed workers' Covid financial help now starts at 50% income loss, down from 75%
Friday, January 22, 2021 @ 12:54 PM
A PLANNED rise in self-employed persons' Social Security, or national insurance payments has been shelved until May instead of coming into force in January 2021, and the scope has been widened for those whose income is affected by the pandemic to claim.
Starting with last year's lockdown in March, sole traders, business owners or freelance workers had to show their income had reduced by at least 75% as a direct result of the Covid crisis before they were able to receive any State benefits – unlike employees who, as soon as they were temporarily laid off or 'furloughed', would receive the standard monthly dole payment of 80% of their gross salary for the first six months and 60% thereafter.
Now, though, self-employed workers only have to show a 50% loss in their income.
Benefit payments, funded by Social Security – including sick pay, maternity or paternity leave, and in the case of the Covid crisis, total or partial cessation of activity either temporarily or permanently – are based upon a 'fictitious' salary on which the worker pays 30% in a monthly fee.
The minimum Social Security fee payable by a self-employed worker is around €286 a month, based upon a 'fictitious wage' of €944 a month, but the next band up is based upon a 'hypothetical' salary of €4,000 a month, costing €1,200 in Social Security, with nothing in between.
Read more at thinkSPAIN.com