The government approved a major reform of unemployment benefits this Tuesday. These benefits are premium-free aid aimed at unemployed people in the country who have already exhausted their contributions. About 900,000 people currently receive this assistance.
The agreement was signed with Yolanda Díaz, vice president and Minister of Labor and Social Economy, and with Nadia Calviño, First Vice President and Minister of Economic Affairs and Digital Transformation. At the press conference after the Council of Ministers, Díaz stressed the government’s commitment to expanding workers’ rights and described the administration as one focused on practical, useful policies.
The reform centers on several key changes, including an increase in subsidy payments. The monthly subsidy previously stood at 480 euros but has shifted to a tiered system starting at 570 euros, gradually decreasing back to the original 480 euros. Coverage will also expand to about 400,000 new potential beneficiaries, notably temporary agricultural workers and people under 45 years old.
Another important change announced is that the new subsidy allows unemployed individuals to combine benefit collection with salary for up to six months.
Join BİLGİ WhatsApp channel
To ensure correct implementation of the reform, the government has introduced tighter oversight supported by the Ministry of Economy. Quarterly checks will verify that beneficiaries continue to meet the requirements, and they will be required to submit an annual income statement similar to that used for the Minimum Vital Income IMV. Source: Government
New unemployment benefit
The reform thus rests on changes to three core areas: coverage, amount and duration, and suitability for employment. Access will be provided to approximately 400,000 people, including 250,000 agricultural workers in regions outside Andalusia and Extremadura who previously lacked access to agricultural subsidies. It also includes 150,000 people under 45 who could not benefit before due to age. There are also suggested derivations affecting 120,000 people within the scope of the Minimum Subsistence Income IMV, adjusting formal requirements to include this group.
Regarding the amount, a middle ground was reached between the proposals from the Ministries of Labor and Economy, with the payment schedule defined as follows:
- From 0 to 6 months: 570 euros or 95% of IPREM
- From 6 to 12 months: 540 euros or 90% of IPREM
- From 12 months onward: 480 euros or 80% of IPREM
Work and collect the subsidy
This reform also contemplates aligning the subsidy with employment for six months, facilitating the reintegration of beneficiaries into the labor market. Initially, Díaz suggested pairing the subsidy with 100% of the initial salary for the first 45 days of the contract, but a six-month alignment was approved instead.
Subsidy for people over 52 in 2024
Another common question about changes to such benefits was what these subsidies would look like for those over 52 who are unemployed. These unemployed individuals fall under the IPREM, receiving 600 euros per month this year. Consequently, the subsidy amount remains 80% of IPREM, equal to 480 euros per month. Following the reform announcement, the government confirmed via the La Moncloa site that the subsidy amount would not rise. This means those relying on this aid will continue to receive 480 euros monthly.