The Social Security has proposed suppressing the extraordinary benefit for self-employed with loss of turnover who have not contributed enough and that in August received 141,000 self-employed workers. The Government plans to limit extraordinary benefits as of October 1 in exchange for improving the exemptions from Social Security contributions to encourage the maintenance of the activity.
In this context, a meeting was held between the general director of Social Security, Borja Suárez, and the self-employed associations ATA, UPTA and UATAE, to negotiate the continuity of the aid for this group, which expires on the 30th of September.
Sources from the Ministry of Social Security maintain that "we are in a different context of strong growth and lifting of restrictions". The government proposal is that the bulk of the self-employed "go on to receive aid in the form of exemptions to support the maintenance of the activity; and that the benefit be limited to those who have suspended their activity, the seasonal self-employed with low income and who can access the ordinary cessation benefit compatible with the activity for meeting the requirements of lack of contribution". This August 85,226 people joined these aids.
Currently, Social Security pays an estimated payroll of 198.6 million euros in aid to the self-employed. More than 226,000 self-employed workers this month receive some of the specific benefits for the group launched by the COVID-19 pandemic.
The exemptions were already a novelty in the aid scheme that was still in force that was agreed in May, by fixing reductions in the quotas of all self-employed workers who were protected in the previous period (almost 460,000 between February and May) . Specifically, the exoneration was 90% in June, 75% in July, 50% in August and 25% in September.
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In September, 219,000 self-employed workers benefited from this 25% exemption, according to the latest data from Social Security. In addition, in September there are still 225,000 self-employed workers who are beneficiaries of any of the current benefits, less than half the number three months earlier and 81% less than in April 2020.
The self-employed associations do not accept the new measure
The president of the Self-Employed Association (ATA), Lorenzo Amor, has shown his rejection of the new government measure and has shown his intention to " keep negotiating." From the association they do not accept the proposal to suppress the extraordinary benefit from October because, as they explain from Twitter, "it would leave 80% of the 226,000 who today receive it without benefit."
From the Union of Professionals and Self-Employed Workers (UPTA) they maintain that "the extraordinary cessation of activity due to a decrease in billing cannot disappear" and they have indicated that "we still have to work to refine the modality of benefit for extraordinary cessation of activity in those cases in which there has been a significant reduction in billing"
Eduardo Abad, president of UPTA, has claimed that "this modality of cessation of activity be extended in the same terms as the previous one, since there are sectors of activity such as travel agencies, tourist guides, cultural activities, musicals or fair show professionals, among others, who are still suffering the economic impact of the pandemic".
On the other hand, from UPTA they have requested an extension of this social umbrella until January 31, 2022. "We cannot ignore that the protection provided through benefits for cessation of activity has constituted for self-employment, the greatest protective system against the economic crisis derived from COVID-19.In addition, we are aware that the Ministry has made a great effort and we ask it to continue in this line of action, since these measures have helped our group to maintain its activities," they said.