08 Mar What is the Unique Payment of the unemployment benefit?

If you find yourself unemployed and have a business idea or want to start working on your own, a good option to obtain part of the necessary financing is through the known as Unemployment Single Payment.

In this article we will explain you what it is, what are the requirements and all the issues you have to take under consideration before making your request.

WHAT IS THE SINGLE PAYMENT?

The single payment is an option offered by the State Public Employment Service, which allows all or part of the amount pending collection corresponding to the contributory level unemployment benefit to be charged in one go.

Depending on the destination given to this payment, the benefit may be received as a single payment, which must be entirely used to make the capital contribution, the entry fee, the purchase of shares or participations or the investment necessary to start the activity; as monthly payments intended to subsidize the beneficiary’s contribution to Social Security; or as a combination of both.

WHICH ARE THE REQUIREMENTS?

In order to benefit from this option, a series of requirements must be met:

1. To be a beneficiary of a contributory benefit for unemployment and to have pending to receive at the date of application, at least, three monthly payments. However, if you are a beneficiary of the economic benefit for cessation of activity, this minimum requirement is raised to six monthly payments.
2. Not having used this right, in any of its modalities, in the four years immediately preceding.
3. Start, within a maximum period of one month after granting the payment, one of the following activities:
   • As a self-employed worker or self-employed member of a company already incorporated or newly created.
   • As a worker member of a cooperative or labor society already incorporated or newly created.

WHAT ARE THE OPTIONS?

As already mentioned, in order for this payment to be granted, it is necessary to start an activity in the month following the concession, with different options:

• Start the activity as a self-employed worker.
• Start the activity as a self-employed member of a commercial entity, which must be new or with an age not exceeding 12 months.
• Start the activity as a working or stable partner in an existing or newly created cooperative.
• Start the activity as a working or stable partner in an existing or newly created labor company.

AND ONCE IT HAS BEEN GRANTED TO ME, IS THERE ANY OTHER OBLIGATION?

Once all the procedures are finished, there is one aspect that we should not forget.

One of the main advantages of this payment is that it is exempt from taxation in the PIT, however, this exemption is conditioned to keep the shares or participations acquired for a period of 5 years (in the cases of integration in a labor company, a cooperative or a commercial entity) or the maintenance of the activity, also for 5 years, in the case of having been constituted as a self-employed worker.

Contact the team of Navarro Llima Abogados if you have a business idea, our team will advise you and assist you throughout the procedure to see your corporate project carried out.

Marina Cantalapiedra

Commercial Law Department