The self-employed before COVID-19: Severance pay (CATA)

Benefit coverage for self-employed workers is compulsory with the entry into force on 1 January 2019 of Royal Decree-Law 28/2018 of 20 December on the revaluation of pensions and other urgent social, labour and employment measures.

The duration of the CATA, taking into account the justification of the temporary cessation of activity by FORCE MAJEURE (COVID-19), will be for full months during the state of alert.

The protection system for the cessation of activity includes the following benefits:

• The amount of the benefit will be calculated as 70% of the average regulatory base contributed during the 12 continuous months immediately preceding the cessation of activity.
• The payment of the social security contribution for contingencies common to the corresponding scheme.
• Measures for training, professional orientation and promotion of entrepreneurial activity of self-employed beneficiaries.

The minimum and maximum amounts of the CATA benefit will be established depending on the number of children that the self-employed person has in his/her care.

Receiving the CATA benefit is incompatible with working for others or being self-employed, even if it does not imply compulsory inclusion in any Special Regime.

It shall also be incompatible with obtaining pensions or benefits of economic nature from the Social Security system unless these have been compatible with the work that gave rise to the CATA protection, as well as with the measures to encourage the cessation of activity regulated by sectorial regulations for different groups, or those that may be regulated in the future by the State.

Finally, you should know that this new benefit is managed by the Mutual Collaboration Society with Social Security, with which the self-employed have an agreement to cover professional contingencies.

Therefore, if you do not know how to start applying for your CATA benefit and you have been inactive as a result of the state of alarm since 14 March, do not hesitate to contact our professional office, where we will be able to assist you with this and other relevant procedures.