Act 32/2010 of the 5th August sets out a benefit system for the self-employed who stop working.
A report was prepared by a group of experts and was presented in December, 2008 by the Minister for Employment and Immigration. This represented a starting point for the development of a pre-law study on a system of benefits specific to the self-employed who stop working.
Using as a reference the experts’ report and observations made by associations of autonomous workers and social experts, the Ministry of Employment and Immigration put together a proposal which was analyzed and reviewed by the aforementioned groups. Final consideration was given to the report issued by the Economic Social Council.
The Law states that, in order to be able to enjoy the right to benefits due to the cessation of work, self-employed workers must pay their social security contributions continually during a minimum period of 12 months immediately prior to the date of ceasing work. This would give them the right to 2 months of benefits. A self-employed person who, in 2011 expects to claim unemployment benefit will have to pay extra social security contributions throughout 2010.
The system which has been designed to allow the self-employed to be able to claim unemployment benefit is based on the principles of contribution, solidarity, and sustainability. It is a mix between being voluntary and obligatory so, to be able to claim unemployment benefit, the self-employed will have to make contributions for work-related accidents and illnesses, something which until now has been voluntary expect in specific cases such as that of Economically Dependant Self-Employed Workers (self-employed people who depend on one single client for at least 75% of their income) or, in the future, in the case of the self-employed who operate professional activities with an increased risk of occupational hazard.
The amount of benefit for ceasing work in the case of the self-employed will be a minimum of 583.38 Euros per month and a maximum of 1,389.90 Euros per month. The exact amount throughout the entire period of entitlement will be equivalent to 70% of the base for which the worker was making contributions during the 12 months prior to the end of their period of self-employment.
The length of the period of entitlement will be between 2 and 6 months, depending on the period of contributions and in cases of self-employed workers being between 60 and 64 years of age, the length of entitlement will be a minimum of 3 and maximum of 9 months.
Specifically, the self-employed who have made contributions over 12 to 17 months will be entitled to two months of benefits, those who have made contributions over 18 to 23 months will have 3 months of benefits, those who have made contributions over 24 to 29 months will have 4 months of benefits; 30 to 35 months of contributions will guarantee 5 months of benefits and 36 months or more of contributions will give 6 months of benefits.
The period of benefits will be related to the periods of contributions made within the 36 months prior to the legal cease of work, of which at least 12 months must be continuous and immediately prior to said cease of work.
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