At Easy Advisor Tech, we address all labor-related matters. Today, we want to show you the case of how a prolonged sick leave works for a self-employed person. In the vast majority of cases, self-employed individuals rely on income generated directly from their work, so in the event of sick leave, this directly impacts their income.
Temporary Disability Benefit for Self-Employed Individuals
Fortunately for self-employed workers, this situation is covered by the Social Security system with the temporary disability subsidy.
To be eligible for this temporary disability subsidy, we must first identify the type of contributions we are making as self-employed individuals:
- Professional contingencies and common contingencies.
Both cover common illnesses, work-related accidents, occupational diseases, and workplace accidents.
Another important factor is the contribution base for which the self-employed person is working. This contribution base is determined by the worker when they register with Social Security, though there are minimum contribution bases. For an individual, the minimum base is €944, and for those with more than 10 employees or part of a company, the minimum base is €1,214.08.
Once we have clarified the contribution base for which we have been working, there are different types of subsidies available for each base. This allows the worker to maintain a minimum income while on sick leave, preventing the business from closing immediately when a self-employed person takes sick leave.
Alternative to the Temporary Disability Subsidy for Self-Employed Individuals
In many cases, self-employed individuals who are or have been on sick leave believe that the temporary disability subsidy is not enough to cover all their daily expenses and business costs.
Therefore, there is an alternative that is gaining popularity among self-employed workers, especially in Spain: temporary disability insurance. This solution is ideal because the cost of increasing the contribution base and, therefore, receiving a higher subsidy is greater than purchasing one of these insurance policies. By doing so, the self-employed worker can remain at their preferred contribution base while paying a lower insurance premium to protect themselves against potential accidents that may lead to sick leave.
Finally, an alternative is to have a "Plan B"—that is, to have the subsidy in place, along with private health insurance as coverage for Social Security.
At Easy Advisor Tech, we handle each case with the highest efficiency and personalization. If you have any questions regarding labor matters, you can contact us directly through our contact link: https://easy-advisors.es/contacto/
