The Government approves an allowance of 440 euros for unemployed people who have no right to subsidies and a moratorium on social security contributions of self-employed workers for 6 months

On Tuesday, the Council of Ministers approved new support measures against coronavirus, especially for the most vulnerable groups. One of them is an extraordinary allowance for people whose “contract has been terminated and do not have the minimum time required to claim unemployment benefit”, as detailed by the Vice-President for Social Affairs and 2030 Agenda, Pablo Iglesias. This benefit will be 440 euros per month and will also be available for domestic workers in the same situation.

The Council of Ministers also approved a moratorium on the payment of social security contributions for the self-employed workers, in addition to other housing measures.


Nadia Calviño, Vice-President of Economic Affairs, explained at the press conference following the Council meeting that the executive has adopted the “extension of social security contributions for six months, without interest”. These are the measures that affect freelancers:


  • Extension of six months of interest-free social security contributions
  • Possibility for SMEs and the freelancers to defer debts with the Treasury for up to 30,000 euros for six months, with a three-month grace period
  • A moratorium on the payment of contributions – without interest – is provided for the days worked in the month of March
  • Mortgage moratorium is extended, including self-employed workers who have no activity due to the state of alarm or have suffered significant losses


What about the March fee they have already charged to self-employed workers?

Government stated that “What we have established today is that a moratorium can be given for the payment of those amounts that correspond to the days worked in the month of March. Those amounts that have already been paid in I understand that the self-employed may request a refund of the part that does not match.”


The extraordinary edition of the Official State Bulletin (BOE), published on late Sunday, on the other hand, confirmed that the self-employed can continue to work despite the tightening of the state of alarm to preserve only essential activities as they are outside the scope: they are not employees and would not be eligible for recoverable paid leave. As they would not be able to make up those hours or recover those payments, they must have the right to continue working. However, this new measure does apply to their employees. “Self-employed workers will be able to continue with their activity by proving that they are and that their activity is not suspended by the state of alarm” (referring to the certificate published this Monday in the BOE), explained Nadia Calviño in a press conference.