Tutorial Video: Cease of Activity Benefit for the Self-Employed in Spain in 2023
Are you a self-employed or independent professional in Spain? Surely you have heard of the unemployment benefit for the self-employed, which can offer you financial assistance in the event of unemployment or termination of your activity.
The life of a self-employed individual can be filled with challenges and ups and downs, and sometimes adverse circumstances can lead to the cessation of their activity. However, in Spain, self-employed individuals have a social protection system that offers them an economic safety net during these difficult times. The Cease of Activity Benefit, also known as the self-employed unemployment benefit, is a mechanism designed to support self-employed workers in case of cessation or suspension of their activity. In this article, we will explore the key aspects of this benefit in Spain during the year 2023.
What is the Cease of Activity Benefit?
The Cease of Activity Benefit is a social protection mechanism intended for self-employed individuals who are in a situation of cessation or suspension of their business activity. Its main objective is to provide them with economic assistance to cover their basic needs during this period and facilitate their reintegration into the labor market. This benefit is managed by the National Institute of Social Security (INSS) and is governed by the regulations established in the General Social Security Law.
Requirements to Access the Cease of Activity Benefit
To access the Cease of Activity Benefit in 2023, self-employed individuals must meet certain requirements established by law. These requirements include:
- Being registered in the Special Regime for Self-Employed Workers (RETA) of Social Security.
- Having paid contributions for the cease of activity for a minimum period of 12 months within the last 24 months prior to the termination.
- Demonstrating a legal situation of cessation of activity, which can be either definitive or temporary.
- Signing an activity commitment, committing to actively seek employment, and participating in training, professional guidance, and entrepreneurship promotion actions.
- Being up to date with Social Security contributions.
- Not having reached the ordinary retirement age, unless the required contribution period is not met.
- Not being in any of the incompatibilities established by the legislation.
Benefits of the Cease of Activity Benefit
The Cease of Activity Benefit provides self-employed individuals with a series of benefits and economic protection during the period of cessation of their activity. These benefits include:
- Monthly economic benefit: Self-employed individuals who meet the aforementioned requirements can receive a monthly economic benefit. The amount of this benefit is calculated based on the self-employed individual’s contribution base and their contribution period prior to cessation. In 2023, the amount will be 70% of the regulatory base during the first 6 months and 50% from the seventh month onwards.
- Social Security contributions: During the benefit’s receipt period, Social Security covers the self-employed individual’s contributions, which helps maintain their social protection and labor rights.
- Access to training and guidance: Benefit recipients have the opportunity to access training programs, professional guidance, and entrepreneurship promotion to improve their skills and increase their chances of reintegrating into the labor market.
- Advice and support: Self-employed individuals in a situation of cessation of activity can receive advice and support from public employment services and other institutions to facilitate their transition to a new work activity.
Amount of the Cease of Activity Benefit for Self-Employed Individuals in Spain for 2023
In 2023, the amount of the Cease of Activity Benefit for self-employed individuals in Spain has undergone some significant changes. Below, we will detail the key aspects related to the amount that can be received.
Bases for calculating the benefit
The amount of the benefit is determined based on the self-employed individual’s contribution base. In 2023, the minimum contribution base is 1,050 euros per month, while the maximum base is 4,070 euros per month. These values are important for calculating the benefit amount.
Percentage of the benefit
The percentage of the benefit varies depending on different circumstances. Starting from January 1, 2023, self-employed individuals who meet the established requirements can opt for 70% of their regulatory base during the first six months of the benefit. From the seventh month onwards, the percentage is reduced to 50%.
However, there are specific situations in which the percentage of the benefit is modified. For example, if the self-employed worker has at least two dependent children, the percentage is increased by 20%. There may also be modifications if the self-employed individual is over 55 years old.
Maximum and minimum limits
Regarding the maximum and minimum limits of the Cease of Activity Benefit, in 2023, a minimum amount of 661 euros per month is established. On the other hand, the maximum limit is set at 2,400 euros per month. These limits ensure that no self-employed individual can receive a benefit lower or higher than these established values.
Duration of the benefit
The duration of the Cease of Activity Benefit is also relevant for calculating the total amount to be received. In 2023, the duration of the benefit is determined based on the periods of contributions. If the self-employed individual has between 12 and 17 months of contributions, the benefit’s duration will be 4 months. From 18 months of contributions onwards, an additional month is added for every 6 months of contributions, up to a maximum of 24 months.
Other aspects to consider
It is important to note that to access the Cease of Activity Benefit, self-employed individuals must meet a series of requirements, such as having contributed to the cessation of activity for at least 12 months, being up to date with social security contributions, and demonstrating a significant loss of income, among others.
Furthermore, it is essential to remember that this data and figures correspond to the year 2023 and are subject to possible modifications or updates by the competent authorities.
Get free tax advice from specialists!
To avoid conflicts with the Tax Agency, you can rely on the support of Entre Trámites to advise you on all your tax and accounting matters. We have specialists willing to help you in a Free 30-Min Consultation. You can also fill out our contact form, call us, or write to us on WhatsApp!
