Since July 1, 2024, the maximum time limits and minimum amounts that self-employed workers can request from Social Security when splitting the reimbursement of a benefit claimed from them have increased and decreased.
We would like to inform you that on July 1st, the amendment to the General Social Security Regulations came into effect, changing the conditions that self-employed workers must meet to pay in installments when they have to repay a benefit that is being claimed from them. For example, disability benefits or cessation of activity benefits.
Below, we detail the changes and how you can benefit from this measure.
Increased payment terms and reduced minimum amounts
From the aforementioned date, the maximum repayment periods for undue benefits will increase, while the minimum monthly installments will decrease. Specifically, self-employed workers will be able to repay benefits in up to 60 monthly installments (equivalent to five years), with a minimum monthly payment of €100. This measure does not allow for repayments below this minimum amount.
Who benefits from this measure?
This change could benefit thousands of self-employed workers who, according to their mutual insurance companies or the Social Security system itself, may have received benefits to which they were not entitled. Examples of such situations include cessation of activity requested during the pandemic, permanent disability benefits, or the Minimum Living Income (IMV).
Extension of the deadline for returning benefits
Self-employed workers will have the option to repay these benefits in up to 60 installments, extending the previous repayment period by one year. The minimum monthly payment is set at €100, with no possibility of agreeing to lower amounts.
Requirements for paying in installments
The authority to authorize and establish payment schedules for the installment repayment of unduly received benefits rests with the directors of the Social Security administrations. To this end, self-employed individuals must demonstrate that their financial situation and other relevant circumstances, as assessed at the discretion of the competent body, prevent them from making the repayment within the timeframe specified in the claim.
If the payment plan request is denied, the resolution will grant a new payment period of 15 days from the date of notification. If the remaining payment period specified in the debt claim is longer, that period will be maintained, which is initially set at the last business day of the month following the first notification.
Important: If you miss a payment on one of the agreed installments, Social Security may demand full repayment in a single payment. It is essential to meet the established deadlines to avoid this situation.
Procedure for requesting installment payments
If you receive a notification from Social Security requesting repayment of benefits due to non-compliance with the eligibility requirements, self-employed individuals who can demonstrate, based on their income, that they cannot repay the benefit in a single payment can request payment in installments from the Treasury. This request can be made according to the new deadlines starting July 1st.
To request an installment plan, you must follow these steps:
- Access the link provided by Social Security.
- Identify yourself using the Cl@ve Permanente system.
- Submit the installment payment request.
- Attach the required documentation that proves your economic situation and other circumstances.
This new regulation offers greater flexibility and financial relief to self-employed workers who need to pay social security benefits in installments. By extending the payment terms to five years and reducing the minimum monthly payment to €100, it facilitates compliance with these obligations without significantly jeopardizing the self-employed worker's financial stability.
We recommend you carefully review your situation and, if you receive such a notification, proceed with the payment plan request if you believe you cannot make the repayment in a single payment. We are available to advise and assist you with the application process, ensuring you meet all the established requirements and deadlines.
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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