More than 630,000 self-employed people in Spain have taken advantage of the offer to pay additional social security payments in order to qualify for welfare payments should they cease trading. The numbers have been steadily growing since the introduction of the legislation that permits self-employed to obtain monthly payments, in return for paying higher monthly contributions, should they be unable to obtain an income from their business.
The measure was signed into law towards the end of 2010 and the number of affiliates has been increasing steadily since with almost 20,000 registering in March alone for the additional protection. According to the new system, those self-employed workers who make 48 or more monthly contributions will be entitled to receive 12 months of ‘unemployment’ benefits. The entitlement reduces proportionally to a minimum of 2 months for those who have made the extra contributions for between 12 and 17 months.
The actual amounts that will be paid out if the self-employed worker fulfils the necessary criteria will typically be 70% of the ‘base’ upon which their contributions were based, subject to the statutory limits.