The corporate self-employed will no longer be able to collect 100% of the pension in active retirement.
A ruling of July 23, 2021 issued by the Social Chamber of the Supreme Court, states that the self-employed corporate will not be able to reconcile their work with the collection of 100% of the pension for active retirement.
Corporate Self-Employed and the active retirement pension
The most important aspect of this ruling is that it establishes jurisprudence and, therefore, no new appeals will be allowed for this reason.
The Supreme Court establishes that the self-employed will not be able, as of the date of this ruling, to receive 100% of the active retirement benefit. This situation can be enjoyed by the self-employed “natural person”, provided that they have hired at least one employee.
The two arguments of the SC for denying the full pension to the self-employed in a situation of active retirement are as follows:
- An individual self-employed person and a corporate self-employed person are not the same. And, therefore, they would not enjoy the same rights.
- Regarding the hiring of workers. He considers that if the company is a trading company, the employer is the legal entity and not its directors or administrators.
According to the legal director of ATA (Federación Nacional de Asociaciones de Empresarios y Trabajadores Autónomos), Mr. José Carlos Piñero, this ruling generates an even bigger problem since it could affect those who were already receiving their full pension through active retirement. And the INSS (National Institute of Social Security) could even go so far as to request the return of income from previous years to self-employed companies that have been receiving their full pension, making it compatible with the business.
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