We have made a brief summary with all the News for Self-employed in 2019, in accordance with the entry into force of Royal Decree-Law 28/2018 of 28 December, for the revaluation of public pensions and other urgent measures in social, labor and employment.
News for the Self-Employed. Coverage with a mutual insurance company
Since 1 January, self-employed persons who cover their benefits with the National Institute of Social Security (INSS) are obliged to do so with a mutual insurance company for accidents at work.
They have 3 months (until 30 March 2019) to process it, and it will take effect on 1 June.
The obligatory coverage is also extended to professional contingency and cessation of activity, in addition to the coverage of temporary incapacity for common contingency, obligatory to date.
Exceptions
- Self-employed workers under the Special Sea Regime: they can opt for a mutual or for the Social Institute of the Navy (ISM). Exceptions to this group are also those in the third contribution group, which must have coverage for common contingencies with the ISM.
- Members of cooperatives, integrated in the RETA: if they have a system of inter-cooperative protection of social benefits complementary to the Public System, which protects the contingencies of work accident and professional illness, due to cessation of activity and professional training, they are not obliged to be covered in the RETA.
- Self-employed persons who pay a flat-rate contribution: they are not obliged to cover the benefit for cessation of activity.
- Self-employed persons with 65 years of age and 38 years and six months of contribution or 67 years of age and 37 months of contribution: they are exempt from contribution, without taking into account the extra payments to calculate the years of contribution.
News for the self-employed. Change in Contribution Bases
Minimum base: 944,40€ per month (increase of 1,25%)
Maximum base: 4,070.10€ per month (7% increase)
This table shows the different types of exchange rates and their annual variations:
Coverage | 2019 | 2020 | 2021 | 2022 |
Common Contingencies | 28,3% | |||
Professional Contingencies | 0,9% | 1,1% | 1,3% | * |
Cessation of activity | 0,7% | 0,8% | 0,9% | * |
Professional education | 0,1% |
*From the year 2022, this base will be established in the General Law of State Budgets.
Different cases
Self-employed persons aged 47 on 1 January 2019
If their contribution base is less than 2,052.00€/month, they will not be able to choose a base with an amount greater than 2,077.80€/month, unless they exercise their option in this sense before 30 June 2019, or if they are the surviving spouse of the business owner who, as a result of his or her death, had to take over the business and register in this special regime at 45 years of age or over. In this case there will be no such limitation.
Workers aged 48 or over on 1 January 2019
may choose their bases between 1,018.50 and 2,077.80€/month, except for exceptions (that the spouse over 45 years old who has taken over the business of a deceased self-employed person, in which case it will be between 944.40 and 2,077.80€/month).
However, the contribution base of self-employed workers who, prior to the age of 50, had contributed to any of the schemes of the Social Security system for 5 years or more, from 1 January, will have these amounts:
- If the last credited contribution base was equal to or less than 2,052.00€/month, the contribution must be between 944.40€/month and 2,077.80€/month.
- If the last credited contribution base was higher than 2,052.00€/month, it must be quoted on a basis between 944.40€/month and the amount increased by 7%, with the maximum contribution base limit. This will also apply to self-employed workers who, at 48 or 49 years of age, have exercised the option provided for in article 132, section Four.2, second paragraph, of Law 39/2010, of 22 December, on the General State Budget for 2011.
Self-employed workers engaged in street or door-to-door sales
You can choose between 944,40 or 869,40€/month as the minimum contribution base.
- CNAE-4781 Retail trade of food, beverages and tobacco products in stalls and markets
- CNAE-4782 Retail sale of textiles, clothing and footwear at stalls and flea markets
- CNAE-4789 Retail sale of other products at stalls and flea markets
- CNAE-4799 Other retail trade not conducted in establishments, stalls or flea markets
You can choose as minimum base 944,40 or 519,30€/month.
- CNAE-4799 Retail trade at home
- Workers in worker cooperatives engaged in itinerant sales with a maximum of 3 days or less than 8 hours a day who receive income directly from buyers.
Self-employed persons who have paid contributions in respect of common contingencies on a pluriactivity basis.
Taking into account both the business contributions and those corresponding to the worker in the General Regime, as well as those made in the regime for self-employed, for an amount equal to or greater than € 13,822.06, will be entitled to a refund of 50% of the excess that exceeds this amount, with a ceiling of 50% of the contributions paid into the special regime due to their contribution for common contingencies.
Self-employed Entrepreneurs
Self-employed persons who have employed 10 or more workers at any time in 2018, and self-employed persons who exercise the functions of direction and management that entail the performance of the office of director or director, or provide other services for a capital company, their minimum contribution base may not be less than 1,214.10€/month.
Those Self-employed persons under the Special Social Security Scheme for Seafarers
They have, by reason of their activity, a coefficient reducing the retirement age. The contribution for professional contingencies shall be determined in accordance with the highest rate fixed in the established premium rate, provided that the establishment of this reducing coefficient does not entail an additional contribution for this concept.
Contribution for accidents at work and occupational diseases
The rates of the new tariff approved by Law 42/2006 (fourth additional provision), in the wording presented in Royal Decree-Law 28/2018, will be applied.
Part-time
One more year, the entry into force of the possibility of part-time self-employment is postponed.
Flat rate for the self-employed
Self-employed persons who were paying flat-rate contributions (articles 31 and 32 of the Self-Employment Statute) are obliged to pay contributions for professional contingencies, not for cessation of activity (CATA) and professional training.
The flat rate is set at a single monthly fee of €60 (previously €50), which will include both common and professional contingencies. Of this fee, €51.50 corresponds to common contingencies and €8.50 to professional contingencies. Self-employed persons who, before 1 January 2019, were contributing for cessation of activity, will be able to maintain it, and then the contribution for professional training will be obligatory.
Action to protect the self-employed worker’s cessation of activity
The benefits that cover the cessation of activity include the payment of contributions for all contingencies from the 61st day of the cessation of activity, when the person is entitled to the economic benefit of temporary incapacity.
Application for and birth of the right to protection in the event of cessation of activity
Both are technical, given the modification made on the date of the effects of the additions and deletions of the self-employed. The cessation of activity benefit will be caused either on the day following the deregistration in the RETA, or on the first day of the month following the deregistration.
This circumstance is due to the fact that the self-employed, from 1 January 2018, can cause up to three registrations and cancellations in the year with effects from the day on which the requirements and conditions for their inclusion in the RETA are met, for registrations, and from the date of cessation of activity, for cancellations, instead of the first day of the month for registrations and the last day of the month for cancellations. From the fourth registration and deregistration, and the effects are from the first day of the month.
Duration of benefit
It is extended and can reach up to 2 years.
Months | 2019 | 2018 | |
up to 60 | More than 60 years | ||
from 12 to 17 months | 4 | 2 | 2 |
from 18 to 23 months | 6 | 3 | 4 |
from 24 to 29 months | 8 | 4 | 6 |
from 30 to 35 months | 10 | 5 | 8 |
from 36 to 42 months | 12 | 6 | 10 |
from 43 to 47 months | 16 | 8 | 12 |
At 48 months | 24 | 12 | 12 |
For any analysis or clarification of your particular case regarding the latest News for Self-Employed, please contact us.
Arrabe Integra
Customer Administration Dept.
I am a new autonomo teaching English aged 51, my base is 1018.50, but my contributions are 91.75.
Why are they so high?
Dear Mark:
In this case, the monthly payment is correctly calculated.
A self-employed person over 48 years of age must choose a social security contribution base of between €1,015.50 and €2,077.80 (unless they would have been contributing on a higher base).
On the basis of the contribution chosen, the contribution to be paid is calculated, which is 30%.
In the case of opting for the minimum contribution base (1,015.50 €), the contribution to be paid is 305.55 € which corresponds to the following breakdown:
288,24€; Quotation per CC (28.30% of the BC)
9,17€; Quotation per CP (0.90% of the BC)
7,13€; Quotation per CATA (0.70% of the BC)
1,02€; Quotation per PF (0.10% of the BC)
If in the 2 years prior to registering in the Special Regime for Self-Employed Workers (RETA) you have not been registered in this regime, you are entitled to a bonus in the quota during the first 12 months, the amount to be paid being 91.74€.
Subsequently, for the following 12 months, the incentive and the instalment to be paid will be:
171,92€; 50% REDUCTION for 6 months.
225,37€; 30% REDUCTION for 3 months.
225,37€; 30% BONUS for 3 months
We hope we helped you.
Kind regards.
Hi I’m going to automino
I’m 64 and will be working from home
Do I get any other benefits apart from the bonus scheme
Sincerely Wendy
Dear Wendy:
Thank you for contacting us.
The self-employed are workers whose contributions are used for benefits in the event of contingencies such as illness or disability, cessation of activity and future retirement. In fact, there are no other advantages, beyond complying with current legislation on social contributions.
We hope that we have been able to help you.
Kind regards.
i am 60 years old, if i was to go unemployed how much would i receive and for how long my base is about 922e, im 9 years autonomo
Hi
You can apply to your mutual insurance company for an Extraordinary benefit for cessation of activity. You must define that your income during the month of March or April is 75% lower than your income for the six-month period from September 19 to February 2020. You will be paid 70% of your self-employed contribution base.
If you want further information we have published some articles about this. https://www.arrabeintegra.es/en/?s=Cessation+of+activity
We hope we’ve been helpful.
Kind regards