Minister of Labor, Yolanda Diaz, despite some restrictions imposed by the Ministry of Economy, finally succeeded in increasing the subsidy for the unemployed. The increase in subsidies was a sensitive decision, as an overly generous increase in subsidies could lead to greater accommodation of beneficiaries by the Public Employment Service (SEPE). For this reason, our Minister of Economy, Nadia CalvinoHe explained that the new subsidy model is more compatible with the requirements of the European Union and aims to actively encourage job search among beneficiaries.
This agreement represents an optimal solution to one of the most contentious debates of recent weeks. Ministry of Labor accepted the demands of the Economy Adjust unemployment benefits according to Brussels guidelines. These non-contributory benefits are very important for unemployed people who have exhausted their contributions and are now receiving some benefits. 900,000 people. Aiming to start 2024 with the new system, Díaz proposed that this measure be approved by the Council of Ministers before the end of the year.
“This Government does nothing but expand workers’ rights. We are the government of beneficial policies“, said Yolanda Díaz after the meeting of the Council of Ministers. The agreement reached between the Ministries of Economy and Labor focused on increasing the final amount of the subsidy, which was previously 480 euros per month. Within the scope of support, 80% of the Multi-Impact Public Revenue Indicator (IPREM) was taken as reference, With the changes made, the support will be higher in the first months and the minimum age required to benefit from the support has also been rearranged.
New unemployment benefit plan envisions an increase in jobless benefits 480 to 570 euros in the first six months. This system, which will come into force as of January 1, 2024, and the sections where the support will be collected are as follows:
- From 0 to 6 months: 570 Euro or 95% of IPREM
- From 6 to 12 months: 540 Euro or 90% of IPREM
- From 12 months: 480 Euro or 80% of IPREM
The aim is to benefit a larger number of people and encourage beneficiaries to remain active in their job search. One of the goals of the European Union is to promote an active working life among its citizens, and this reformed subsidy It is designed to prevent beneficiaries from settling down and stopping actively looking for work.
Collect unemployment and work
Another important innovation is the lowering of the age for applying for support. Between 52 and 45 years old, Opening doors to more than 400,000 new people. Moreover, Compatibility of the subsidy with salary collection will be allowed for a maximum of six monthsTo ease the transition process for those who have been unemployed for some time and offer them additional financial support during their re-entry into the labor market.
Subsidy reform will also include control mechanisms to minimize fraud; These mechanisms will include quarterly checks to ensure that beneficiaries continue to comply with established requirements, as well as the obligation to file an annual income tax return, as in the case of the Minimum Vital Tax. Income (IMV).
Although there are still some details to be defined, the agreement reached between the Ministries of Economy and Labor is an important step forward for the benefit of workers. Fundamental aspects such as scope, quantity, duration and suitability for employment have been improved, thus contributing to the personal and professional development of all affected people.