Last night, and it is becoming customary, Royal Decree-Law 11/2020 of 31 Marchwas published, adopting urgent complementary measures in the social and economic sphereto tackle COVID-19. At Confialiawe have prepared this summary of what this aid means for the self-employed and companies.
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Aid to the self-employed and businesses
- Deferral of social security contributions for the self-employed and the general regime. In the case of the self-employed, the quotas run from April to June and in the case of employer's quotas (payment of social security when workers are employed) from June to July.
- The deferral will be for six months, without interest. It shall apply to companies and self-employed workers included in any Social Security scheme, who apply for it and meet the requirements . The conditions will be established by Order of the Minister of Inclusion, Social Security and Migration after agreement of the Government Delegate Commission for Economic Affairs. (i.e. the procedure and requirements are still to be determined).
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Making electricity supply contracts more flexible for the self-employed and companies.
- Exceptionally, and while the state of alarm is in force, gas and electricity supplies to companies and SMEs may be modified or suspended. A request must be made to each company.
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Social bonus for self-employed workers who have ceased their activity or whose turnover has been reduced as a result of COVID-19
- They will be considered vulnerable consumers in their usual residence. They must have seen their billing in the month prior to the month in which they apply for the social voucher reduced by at least 75% in relation to the average billing of the previous six-month period. They will be able to request the deferment of the utility bills of their habitual residence.
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Availability of pension schemes in case of unemployment or cessation of activity resulting from the health crisis situation caused by COVID-19
They will be partially available only to supplement the lost income.
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HOUSEHOLD EMPLOYEES
An allowance is established for domestic workers who have stopped providing services, in whole or in part, on a temporary basis, in order to reduce the risk of contagion. Always for reasons beyond their control, in one or more homes and due to the COVID-19 health crisis. This also includes those whose employment contract has been terminated due to dismissal. Proof of the causal event must be provided by means of a declaration of responsibility, signed by the employer.
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RENTING A PERMANENT RESIDENCE
1.- Suspension of eviction procedures and evictions for vulnerable households without housing alternatives.
2.- Extraordinary extension of habitual residence rental contracts. An extraordinary extension of the term of the rental contract for a maximum period of six months, during which the terms and conditions established for the contract in force will continue to apply, may be applied at the request of the tenant.
3.- Moratorium on rental debt for tenants of permanent housing in a situation of economic vulnerability due to COVID-19.
4.- Automatic application of the moratorium on leasehold debt in the case of large tenants and public housing companies or entities.
5.- Alternatives:
a) A 50% reduction of the rent for the duration of the state of alarm decreed by the Government and the following monthly payments if that period is insufficient in relation to the situation of vulnerability caused by COVID-19, with a maximum of four months in any case.
b) A moratorium on the payment of rent for a maximum of 4 months.
6.- requirements for these moratoriums: Be unemployed, in ERTE or be an entrepreneur whose income has decreased and not have an income of the whole family unit greater than three times the IPREM (Monthly: 537.84 €) 1,613.52 in total. Increasing by 0.1 for each family charge.
7.- Persons who do not meet these requirements and whose landlord refuses to reduce or defer may apply for public subsidies.
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Requirements:
- Be unemployed or, if you are an entrepreneur or professional, suffer a substantial loss of income or a substantial drop in turnover of at least 40%.
- not have an income of more than three times the IPREM (Monthly: 537.84 €) 1,613.52 in total. Increasing by 0.1 for each family charge.
- That the total of the mortgage payments, plus basic expenses and supplies, is greater than or equal to 35 per cent of the net income received by all the members of the family unit.
As always, at Confialia, business advisors, we are attentive to everything that is happening. We are always on the lookout for new aid measures for the self-employed and companies.