Vocational disability: How high are the income losses really?

The most important points summarize for you

The Spanish state does not offer sufficient protection. Anke Sevenster helps you to determine the loss of income you would suffer if you were unable to work.

You should know that there are different types of disability. Depending on the type of disability and your contribution base, you will receive a state pension.

Permanent disability: a permanent disability that prevents you from working in your profession (but also prevents you from working in other professions).

Example: A surgeon who has a disease in his hands cannot work in surgery, but he can carry out other activities....

How much would he earn?

If he is up to 55 years old at the time of notification: 55% of the assessment base, with a maximum limit of €1,355.80/month.

This percentage increases by 20% if you are over 55 at the time of notification.

But what is the assessment basis? Here comes an important point:

- For employees, it is usually comparable to the salary.

- For the self-employed: the assessment basis is different from income.

We would like to explain the new self-employment law to you clearly and simply with two illustrative examples:

• -If your usual income is around €2,000 per month, your occupational disability pension will be around €575 per month.
• -If your usual income is around €4,000 per month, your disability pension will be around €700 per month.

If the pension you receive is significantly lower than your usual income, it must be declared as earned income.

Absolute permanent disability: a permanent disability that prevents you from practising a profession.

In this case, the pension is higher than the occupational pension as it amounts to 100% of the assessment basis, with a maximum amount of €3,058/month.

Here too, the self-employed face a serious problem because, as already mentioned, the income they are used to is much higher than the pension they would receive from the state.

- If the usual income is around €2,000 per month, the disability pension is around €1,029 per month.

- If your regular income is around €4,000 per month, your disability pension will be around €1,275 per month.

Temporary disability: In contrast to the aforementioned cases, which involve a lifelong incapacity to work, this is a temporary incapacity to work.

The real problem here also lies with the self-employed, as employees are largely guaranteed a large part of their salary.

Self-employed persons in turn receive compensation based on the statutory provisions.

- In the event of occupational illness or accident at work: 75% of the assessment basis from the first day.

- For ordinary illnesses: Compensation only from the 3rd day, from the 4th to the 20th day: 60% of the assessment basis and from the 21st day it is 75% of the assessment basis.

The assessment basis is generally between €900 and €1,600 (the latter only if income exceeds €6,000 per month).

Conclusion

If you've managed to read this post in full, then congratulations first, because we know it's not an easy read.

What's next? Contact Anke Sevenster: we will advise you personally on your personal situation and how you can protect yourself against all eventualities.