Moratorium on the payment of social security contributions

The 2021 General State Budget (Presupuestos Generales del Estado) includes, among other labor law developments, the possibility for companies and self-employed workers to apply, by way of a deferral, for a moratorium on the payment of social security contributions to the Social Security system.

Accordingly, companies and self-employed workers that are up to date with their Social Security obligations and have no other deferral in force may apply, by way of a deferral, for a moratorium on the payment of social security contributions (Social Security contributions and contributions for jointly collected items) accruing between December 2020 and February 2021, in the case of companies, and between January and March 2021, in the case of self-employed workers.

Features of the moratorium on social security contributions by way of deferral

This moratorium on the payment of social security contributions to the Social Security system by way of deferral is subject to the following features and conditions:

– Interest at a rate of 0.5% will apply.

– The deferral will be granted by a single decision, regardless of the number of months it covers; it will be repaid in monthly installments, with a repayment period of 4 months for each month requested, not exceeding 12 monthly installments in total. The first payment will be made starting in the month following the month in which that decision is issued.

– Applying for this deferral will mean that the debtor is considered up to date with its Social Security obligations, with respect to the contributions covered by the deferral, until the corresponding decision is issued.

Furthermore, deferral applications must be submitted before the end of the first ten calendar days of each of the statutory payment periods for the accrued contributions referred to above.

Deadlines for submitting applications

Applications must be submitted within the following periods:

Between January 1 and 10:

For companies: a deferral may be requested for the contributions corresponding to the December 2020 settlement period.

For self-employed and own-account workers: a deferral may be requested for the contributions corresponding to the January 2021 settlement period.

Exception: own-account workers under the Special Scheme for Seafarers (Régimen Especial del Mar), whose application must relate to the December 2020 settlement period.

Between February 1 and 10:

For companies: a deferral may be requested for the contributions corresponding to the January 2021 settlement period.

For self-employed and own-account workers: a deferral may be requested for the contributions corresponding to the February 2021 settlement period.

Exception: own-account workers under the Special Scheme for Seafarers, whose application must relate to the January 2021 settlement period.

Between March 1 and 10:

For companies: a deferral may be requested for the contributions corresponding to the February 2021 settlement period.

For self-employed and own-account workers: a deferral may be requested for the contributions corresponding to the March 2021 settlement period.

Exception: own-account workers under the Special Scheme for Seafarers, whose application must relate to the February 2021 settlement period.

Deferral applications submitted after the periods indicated for the current month will be considered late for the purposes of obtaining a deferral at the reduced interest rate.

Being considered up to date

From the time of the application, the debtor will be considered up to date with its Social Security obligations for the months for which the deferral is requested, until the corresponding decision is issued at the end of the period.

Repayment period

If the deferral is granted, a repayment period of 4 months will be allowed for each month requested, up to a maximum of 12 monthly installments, counting from the month following the month in which the decision is issued.