What a good question: can the self-employed really take time off work? The answer is yes, and they do, even if we think it is impossible. Today we are going to look at the differences compared to salaried workers, the amounts that are paid and the limits, and you can also find out the types of incapacity for work that exist.
The self-employed and their resistance to sick leave
The truth is that it is true that the self-employed look like superheroes, we do. By all means we are going to avoid taking temporary incapacity if it is in our power to do so. On the other hand, as salaried workers are better paid for temporary sick leave, it is more common for them to take it.
However, the statistics are clear as well, and we cannot argue against this:
- Out of every 1,000 employees, around 2% of employees they take the temporary incapacity; versus 1% for the self-employed (i.e. it's not that we don't take casualties, but that we do it half the time).
- Compared to an average of 37 days of sick leave for salaried workers, the self-employed have an average of 37 days of sick leave. 87 days on average.
This is important, because it reflects the willingness of the self-employed not to take sick leave, But when he does so, it is usually because it is a serious matter, so he is unable to practice his profession for more days.
How does a self-employed person's leave of absence work?
In this respect, it differs significantly from that of an employee. A self-employed person is free to decide his or her contribution base (on the basis of which he or she pays a social security contribution).
In the 80% of the cases, it is chosen quote for the minimum (about 920 €/month) so the leave allowance is very small, 60% or 75% of that amount. BUT BEWARE: the self-employed contribution must continue to be paid during sick leave.
To sum up: if the temporary incapacity is due to a common contingency, we (those who pay the minimum contribution) receive around 550 euros per month and 690 euros from the 21st day onwards. If it is due to an accident at work or an occupational disease, it will be around €700 per month, as we say, to those who 275 euros of tax has to be deducted.
The time limit for temporary sick leave is 365 days, which will only be extended for a further 6 months if the Assessment Team considers that permanent incapacity should not be granted due to a forecast of improvement in the near future.
Temporary sick leave insurance for the self-employed?
The self-employed, in order to counteract this problem they face, have to three alternatives:
- Do nothing: As long as we are healthy, nothing happens. If we have a major health issue, we could run into serious problems.
- Raise the contribution base: This has an impact on our social security benefits, and also on what we have to pay. For example: if we raise our base from 920 to 1,500 euros, we will pay a monthly contribution of just over 400 euros, and for sick leave we would receive 900 euros up to the 20th day and 1,125 euros thereafter.
- Take out sick leave insurance: This will complement what we receive from Social Security, and its cost is deductible in income tax.
Our opinion: As we have seen, increasing our contribution base by 50% means paying 1,500 euros more to the Social Security, so that we receive 450 euros more per month in the event of sick leave. On the other hand, taking out insurance 900 euros per month, it can mean 200 euros per year. (depending on profession and age), as opposed to the €1,500 it costs to raise the base.
If you would like to find out how much it would cost you to take out sick leave insurance to solve the problem of temporary incapacity, contact us. We work with the best companies in sickness insurance for the self-employed in Spain.
