Concept 

The capitalization of the unemployment benefit allow unemployed people who have the right to get the unemployment benefit to demand the collection of the benefit in a sole receipt, or he/she can obtain the total amount by means of a quarterly basis. The objective is to subsidize the contribution of the worker to the Social Security, in order to promote employment among the unemployed people.

This case of capitalization can be requested by those unemployed people that wish to start working, in a stable and full-time job, at a associated work cooperative or at a employee-owned company; disabled workers, with a handicap of 33% or more, that become self-employed.

Beneficiary of the sole receipt

It is important, before requesting for the capitalization, that employees have the right to obtain the unemployment benefit due to his/her definitive suspension for reasons beyond his/her control.

This case cannot be applied neither if the employee has been suspended of his/her employment contract nor a reduction of the working day. In the case of intermittent permanent employees, they can only obtain the capitalization at the end of the contract, and not during the period of time between the contracts.

Those unemployed people that continue being registered in the Social Security, in either the General scheme or the Special scheme for self-employed, once the labour relation has finished will not be able to obtain the sole receipt.

Those employees that lose their part-time job, or those getting a reduction of the unemployment benefit because they start a part-time job can also benefit from the sole receipt.

Once the employee applies for the unemployment benefit, he/she will have to wait a period of time. If during this period the employee has started the necessary procedures to start a new activity, he/she will keep the right to the payment of the unemployment benefit in a sole receipt.

Requirements to obtain the sole receipt 

• To have the right to get the unemployment benefit.
• The following documentation: certificate of the registration in a employment office; certificate of the admission application in a Cooperative or in a Employee-owned company (or the articles of association , report of the project and the amount of money of the capitalization that the employee wants to invest in the activity, in the case of newly created companies)
• The capitalization cannot be used in the previous 4 years
• To have at least 3 or more unpaid payments of the unemployment benefit
• Not to start the activity before the application.    

Liabilities of the employees

• To start the activity or to be starting in the term of one month from the payment of the capitalization and to be registered in the corresponding regime of the Social Security.
  An extra time of one month can be requested.
• To present to the Responsible Entity the documentation providing the start of activity
• Cooperatives or employee-owned companies must use the obtained payment to the compulsory social contribution. Self-employed (disabled or not) must use this payment to invest in their own activity. On the contrary, improper collection will be supposed and a return will be required by the National Employment Agency (INEM).   

Amount of the benefit

There is some differences in the subsidy of the contributions to the Social Security according to the payment. It can be a sole receipt or a quarterly payment.

• Sole receipt
  The maximum limit that can be obtained in a sole receipt is up to 40% of the amount of the benefit that the worker has the right to get.
  The only case in which the capitalization can be requested in a sole receipt is for Employee-owned companies, Cooperatives or disabled people with a handicap equal or higher than 33%. The rest of the benefit will be obtained in order to subsidize the contribution of the worker to the Social Security.
• Quarterly payment
  This case is aimed to subsidize the contributions that the worker must pay to the Social Security. The benefit will be obtained once the workers have presented the required documents that prove the contribution to the Social Security.   

Regulations:  Article 228.3 of the General Law for Safety modified by the article 1.9 and transitory provision 4th of the Law 45/2002; Royal Decree 1044/1985; Ministerial order of 13 April 1994.