Reconciliation grants for self-employed parents

Information on the benefits available for self-employed parents.

It's not always easy to adjust to the company schedule when you have family needs. For this reason, some parents decide to become self-employed after the birth of a child to help reconcile work, private and family life.

Balancing the needs of a family with work is not easy for self-employed workers. A fixed self-employment contribution must be paid every month regardless of income. It can be difficult to take time off for holidays, there are no bonuses and sick leave usually causes a reduction in the monthly income.

Improvements introduced with the new law for the self-employed:

Self employed persons have been calling for an improvement in their conditions for a long time. In October 2017, Law 6/2017, of October 24, of Reformas Urgentes del Trabajo Autónomo (Urgent Reforms for Self-Employed) was passed, which introduces some economic improvements and also measures to help self-employed parents reconcile work, private and family life:

1. A flat rate of €50 for new self-employed workers

Self-employed workers must pay a fixed monthly contribution to the Social Security regardless of their monthly income. From July 1, 2017, the minimum contribution base is €919.80, with a minimum social security contribution of €275 per month

The new law extends the flat rate payment of €50 to 12 months for new self-employed workers, who will pay the minimum social security contribution. This is also available for self-employed workers who have not been registered in the 2 previous years.

This rate was implemented in September 2015, for a period of 6 months, for self-employed workers registering for the first time or those who had not been registered during the previous 5 years and who were paying the minimum social security contribution.

New self-employed workers who prefer to pay higher contributions, will receive a bonus of 80% on the payment during these 12 months.

There are other measures. For example, regardless of whether you pay minimum or maximum contributions, self-employed workers will also receive a bonus during the second year: 50% discount in the first 6 months in the contribution and 30% in the next 6 months.

Some autonomous communities, such as the Community of Madrid, have improved these conditions with allowances to maintain the flat rate of €50 for two years.

2. Flat rate of €50 after maternity

Mothers who have stopped work and return to work after leave for maternity, adoption, guardianship, fostering or custodianship within two years may also opt for a flat rate of 50 euros for one year and discounts of 50% and 30% for the second year if they pay contributions for the minimum base.

Likewise, if they prefer to pay contributions for a higher rate, they can also apply for a discount of 80% in the monthly payment.

3. Benefits to aid reconciliation of work, family and private life

The new law contemplates a subsidy of 100% of social security payments by self-employed workers for 12 months for the care of children under the age of 12 years when the self-employed worker hires a worker to carry out his/her work while they care for their child.

This reconciliation measure already exists for parents, but the child had to be under 7 years old.

  • To be eligible for this benefit, you must remain registered in the Social Security for at least 6 months after the subsidy period ends. Otherwise, the benefit must be returned.
  • Self-employed workers with dependent or disabled people up to the second degree under their care may also apply for this benefit.

4. Social security bonus during maternity leave and paternity leave

During leave for maternity, paternity, adoption, guardianship with a view to adopt, fostering, risk to pregnancy or during breastfeeding, self-employed workers receive a financial benefit of 100% subsidy of the regulatory base.

This Social Security bonus already exists when the self-employed worker hires a replacement during maternity leave. Now, with the changes to the new law, it is no longer necessary hire anyone.

The leave must be for at least one month (which is the term of paternity leave on the date in which the law of self-employed workers was approved).

Some autonomous regions have increased this bonus. For example, in Galicia, self-employed workers can apply for a benefit to cover Social Security costs arising from hiring another person for 16 weeks more once maternity or paternity leave has ended.

After the approval of the Law of Self-employed workers, some autonomous regions have approved benefits to facilitate work on a self-employed basis

5. Payments proportional to the number of days worked

From January 2018, self-employed workers' contributions are paid from the date of registration in the Special Regime until the date of leave, and not for a full month.

The contribution basis can be changed up to four times, and you can register and de-register in the Special Regime up to three times in each fiscal period (i.e., in one year).

Self-employed workers' rights

As in the case of employees, self-employed workers receive financial benefits for temporary disability and during maternity or paternity leave.

  • Common illness

In the event of non-occupational accident or illness, 60% from the fourth day of the sick leave to the twentieth (including both) and 75% from the twenty-first day onwards.

  • Work-related accident and occupational illness

If the self-employed worker is paying contributions for this (paid apart), 75% from the day on which the right begins.

  • Benefit for risk during pregnancy and breastfeeding

When work is incompatible with the pregnancy or breastfeeding, due to the need to protect the expectant mother and child, there is a 100% subsidy in the regulatory base.

  • Maternity leave

During the 16 weeks of maternity leave, the subsidy of 100% of the regulatory base will be paid. There is a period of six weeks immediately post-birth of compulsory time off for the mother. The mother may opt to sacrifice the 10 remaining weeks to the working father, (whether this be simultaneous with or subsequent to the mother’s leave).

In the case of adoption, the father and mother may share the 16 weeks.

The requirements for receiving maternity benefits are the same for those of employees:

-Between 21 and 26 years age: prove you have contributed to the Social Security for a minimum of 90 days in the last seven years or 180 over your working life.

-From 26 years of age: prove you have contributed to the Social Security for a minimum period of 180 days in the last seven years or 360 over your working life.

  • Paternity leave

Self-employed fathers have the same right to leave for the birth, adoption or fostering of a child as mothers. Paternity leave currently lasts four weeks but is forecast to rise gradually to equal maternity leave of 16 weeks in the future.