Table of Contents

The SC states that if the minimum contribution period for entitlement to a RETA benefit (in this case, cessation of activity) has been completed, but the remaining contributions have not been paid, the managing body invites the interested party to pay the remaining contributions so that they can do so. However, income after the triggering event does not validate the lack of deficiency, as to admit otherwise would be a purchase of pensions.
One of your colleagues pays RETA contributions but his activity is not working. If he pays unemployment contributions for the self-employed, what requirements must he meet in order to receive the benefit, and can he capitalise it to start another activity on his own?
Cessation of activity
Benefit. A self-employed person who stops work involuntarily is entitled to unemployment benefit (unemployment benefit) if he/she fulfils several requirements. For example:

  • You must pay the additional 2.20% contribution for cessation of activity, and you must have paid at least 12 months of contributions for this concept. Note. It is not necessary to contribute for professional contingencies (until 2014 it was).
  • It is also necessary to be up to date with Social Security payments and not to have reached retirement age.
  • On the other hand, it must prove technical, economic, productive or organisational reasons that prevent the viable development of the activity. Note. For example, such causes will exist if you suffer losses of more than 10% of your income for a year, or if you have unpaid debts amounting to 30% of your income. If you have an establishment open to the public, it will be necessary to close it during the period of unemployment benefit, or to transfer it to a third party.

Corporate. If the person concerned contributes to the RETA by virtue of working in the SL of which he or she is a partner, he or she will also be entitled to this benefit. To do so, the company must prove the indicated losses (more than 10% of income for one year), or it must have reduced its net worth to less than two thirds of the share capital. Attention! If you are a director, you must prove that you have ceased to hold office. And if you provide other services for the company, you must prove that you no longer perform them (e.g. by means of a document signed by the new director).
Access to the benefit
Duration and amount. The duration of the benefit may vary depending on the periods of contribution in the 48 months prior to becoming legally unemployed. For example: if the self-employed person has paid contributions for 12 to 17 months, he/she will be entitled to two months of benefit; and if he/she has paid contributions for 48 months or more, the benefit will last 12 months (this is the maximum). Note. The amount of the benefit will be 70% of the average contribution base for the previous 12 months.
Single payment
Requirements. Finally, if the self-employed person is entitled to the benefit and has at least a six-month period pending payment, they can capitalise the benefit to restart another self-employed activity. Specifically:

  • You must prove that you are going to carry out a professional activity, or that you are going to contribute 100% of the amount of the benefit to the share capital of a new company or a company set up within the previous 12 months (provided that you will have effective control and will carry out a professional activity in it).
  • The application for capitalisation must be made prior to the date on which the self-employed person joins the company or the date on which the activity starts. Attention! From then on, once the benefit has been received, the self-employed person must start the activity and register with the RETA within a maximum period of one month.

To receive the benefit, you must have paid contributions for at least 12 months for termination of activity and prove technical, economic, productive or organisational reasons. And if you want to start up again, you can also capitalise the amount of this benefit.