Help Guide For The Self-Employed Affected By The La Palma Volcano

The impact of the eruption of the Cumbre Vieja volcano, on La Palma, has affected a large part of the business fabric of the region. However, as in most cases, the most affected have been the self-employed, those who do not have sufficient financial capacity to withstand a blow as hard as this. For this reason, state aid to the group is so important.

Specifically, the Ministry of Inclusion, Social Security and Migration has made a package of aid available to self-employed workers on La Palma to alleviate the economic impact of the eruption on these businesses.

All the self-employed who have their activity registered on La Palma may benefit from an impediment or limitation ERTE, in such a way that they will benefit from exemptions from:

– Up to 100% of social contributions in the case of seeing their activity totally impeded.

– Up to 90% in the case of activity limitation.

Cessation of activity
Those self-employed who have been forced to stop their activity completely will have the right to receive a benefit for cessation of activity.

As explained by the Social Security, this aid is extended up to 5 months , without the need to prove a minimum grace period and without the receipt of the benefit being computed for the maximum period that corresponds to it.

The amount will reach 70% of the worker’s contribution base. However, the time during which the benefit is received will be understood as quoted.

Temporary suspension of activity
These professionals will receive the benefit from the day after the suspension of their activity and until the last day of the month in which they restart the activity. However, the Ministry has set the deadline for collecting this aid on February 28, 2022 .

Specifically, the amount will be 70% of the minimum base corresponding to the activity, that is, it will have a minimum economic benefit of about 1,000 euros per month between benefits and exemption.

It should be noted that this benefit cannot be made compatible with a job as an employee, except in cases in which the worker receives less than 1.25 times the SMI.

Extraordinary benefit for damages caused by the eruption
In the first place, the benefit may be received even if the activity is maintained. Only those workers whose income in the fourth quarter of 2021 does not exceed 75% of the SMI and represents a 50% drop in turnover compared to the fourth quarter of 2019 will be able to access it.

In the same way as in the previous ones, the amount will be 70% of the regulatory base. This aid will begin to be received from October 1, for 5 months, if it is presented in the first 21 days of November. Otherwise, it will be received from the 1st of the month following the request until February 28, 2022 at the latest.

Postponement of fees
The self-employed affected may request the postponement of Social Security contributions for the next 4 months. However, this deferral carries an interest on the future payment of 0.5%. This period represents the fees that the worker would have to pay between November 2021 and February 2022.

Moratorium on payment of fees
These freelancers may also request a moratorium of up to one year in the payment of the next Social Security installments and joint collection concepts. This moratorium will affect the installments between November 2021 and February 2022, and will have no interest or surcharges on the payment.

Self-employed workers who are beneficiaries of exemptions in Social Security contributions, both for ERTE and for the provision of self-employed workers, may not request this moratorium.

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