Temporary Incapacity is the situation caused by a common illness, professional illness or accident, whether or not work-related, which prevents the worker from carrying out their activity and which requires medical assistance, commonly known as a situation of “sick leave for the self-employed”.

In this article on sick leave for the self-employed we will see everything you need to know and the changes that were approved in 2017 and 2014.

Obligation to pay contributions for temporary incapacity
Assumptions and requirements for paying temporary incapacity contributions
Amount of the benefit for temporary incapacity
Deadlines and notifications of temporary incapacity
Cessation of activity due to temporary incapacity
Self-employed workers are entitled to the same coverage and benefits for temporary incapacity as workers under the General Social Security Scheme, although with some special features.

Gestoría online for the self-employed

1. Obligation to pay contributions for temporary incapacity

Thus, it is compulsory for the self-employed (except for TRADE) to pay contributions for temporary incapacity for common contingencies when registering with the Special Regime for Self-Employed Workers (RETA), a registration that Tax and Law Spain can manage on your behalf.

However, the contribution for common contingencies is optional for those self-employed workers in a situation of pluriactivity and who simultaneously contribute to another Social Security scheme, as well as for workers included in the Special System for Self-Employed Agricultural Workers.

The contribution for occupational accidents and occupational illnesses was voluntary before 1 January 2019 but then the contribution system agreed by the Government, self-employed associations and trade unions included this benefit for occupational accidents and occupational illnesses as compulsory in the self-employed worker’s contribution.

2. Assumptions and requirements for paying contributions for temporary incapacity

Temporary incapacity entitles you to a subsidy to alleviate the worker’s lack of income while he/she receives health care from the Social Security and continues to be unable to work.

The maximum period is 12 months, extendable for a further 6 months.

In order to receive the benefit:

An accident at work for the self-employed worker will be understood to be that which has taken place as a direct and immediate consequence of the work carried out by the worker on his/her own account. Since the implementation of the Reform of Urgent Measures for Self-Employment, accidents at work are considered to be those occurring while travelling to the workplace, those due to force majeure unrelated to the work and those caused by recklessness on the part of the worker.
An occupational disease is understood to be that which is contracted as a consequence of work carried out on one’s own account. In this way, it must be caused by the action of the elements and by the activities specified in the annex to Royal Decree 1299/2006, of 10 November, which approves the list of occupational illnesses in the Social Security.
Common illness shall be understood to mean that you must be registered or in an equivalent situation and have paid contributions for a minimum of 180 days in the last 5 years. In addition, you must be up to date with your contributions. The latter requirements are not necessary in the case of accidents at work and occupational diseases.

3. Amount of the benefit for temporary incapacity

The amount of the benefit is obtained by applying the following percentages to the regulatory base, which is the self-employed worker’s contribution base for the month prior to the month of sick leave, divided by 30.

In the case of common illness or non-occupational accident, 60% will be applied from day 4 to day 20 of the sick leave.
In the case of common illness or non-occupational accident, 75% will be applied from the 21st day of the sick leave.
In the case of an accident at work or occupational disease, 75% will be applied from the day after the day of sick leave.
You should bear in mind that you must continue to pay contributions to the special scheme for the self-employed during the period of sick leave due to temporary incapacity. In addition, another important new feature in 2019 is that from the second month of sick leave, the self-employed worker will not have to continue paying the self-employed worker’s contribution until the sick leave ends. The collaborating mutual insurance company will take over instead.

In the case of sick leave prior to 1 January 2019, it is compulsory to cease activity on the date of sick leave in order to benefit from the measure.

Since most of the self-employed pay contributions at the minimum rate, the benefits for temporary incapacity are usually very limited.

For this reason, many self-employed workers supplement their benefits with some form of private insurance to cover them in the event of sick leave.

4. Deadlines and notifications of temporary incapacity

In addition to accrediting the general requirements, the self-employed (with the exception of those included in the Special System for self-employed agricultural workers and TRADE) must notify the Social Security of the sick leave and the situation of the activity, indicating on the official form who is going to manage the business directly or, where applicable, the temporary or definitive cessation of the activity.

To do so, they have a period of 15 days following the date of cancellation. In addition, and for the duration of the TI situation, the worker will have to present this declaration every six months if required to do so.

Failure to submit the declaration by the deadline will result in suspension of the benefit payment.

However, following the presentation of the draft Mutual Law in July 2014, certain conditions were changed.

The doctor will have five days to reply to the “justified” discharge proposals made by the mutual insurance companies which, if this deadline is not met, may appeal to the Medical Inspectorate.
If the medical health service summons the worker for a check-up and he/she does not show up, the mutual insurance company will no longer be able to issue a discharge for non-appearance, which means the withdrawal of the benefit and the obligation to claim it in court in order to recover it, but the benefit will be suspended to check if there is a justification for the absence of the check-up and, if so, the suspension will be lifted from the same day it was issued.
Changes following the Law on Urgent Reforms in Self-Employment
An accident in itinere, occurring while the self-employed worker is travelling to or from the workplace, has been considered an accident at work since the approval of the new regulation in October 2017.

Until then, Social Security did not recognise the accident in itinere for the self-employed.

This is a measure that aims to put the rights of the self-employed on an equal footing with those of salaried workers, at least in terms of coverage for accidents at work.

Changes after the Decree Law of 2014
Following the approval of the Decree Law on Temporary Incapacity (TI) for common contingencies in the summer of 2014, several changes were introduced with regard to deadlines and notifications:

• With the aim of excessively long discharge deadlines resulting from delays in the management of the Public Health Services, doctors will have five days to reply to “justified” discharge proposals made by the mutual insurance companies which, if this deadline is not met, may appeal to the Medical Inspectorate.
• If the medical health service summons the worker for a check-up and he/she does not show up, the mutual insurance company will no longer be able to issue a discharge for non-appearance, which means withdrawal of the benefit and the obligation to claim it in court in order to recover it, but will suspend the benefit to check whether there is a justification for the absence of the check-up and, if so, will lift the suspension from the same day it was issued.

5. Cessation of activity due to temporary incapacity

When a situation of cessation of activity occurs after that of Temporary Incapacity, the self-employed worker may continue to receive the TD benefit, in the same amount as the benefit for cessation of activity, until it is exhausted.

From that moment on, the self-employed worker will receive the corresponding activity termination benefit and the time spent in a temporary incapacity situation during the activity termination period will be deducted.

If you prefer, you can count on Tax and Law Spain’ online managers who, in addition to handling the tax, accounting and labour management of your business, can manage your temporary incapacity benefit if necessary. Ask us for a no obligation quote.

Thank you very much for reading this article. Tax&Law Spain can help you to overcome other complex matters regarding the VAT. If you have questions considering the scope of sick leave of an autonomo in Spain and you are looking for a professional advice and guidance, you can contact me via WhattsApp (+49 1520 8381499) or e-mail (erica@taxandlawspain.com).