Bad news for those who benefit from benefits over the age of 52: Pension contributions are decreasing

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Changes to unemployment benefits announced by the government last Tuesday have caused rivers of ink to flow. One of the measures that had the biggest impact was increasing the subsidy to be applied in parts: The first six months. They will demand 570 euros (95% of IPREM), €540 from 6 to 12 months (70% of IPREM) and €480 from 12 months (80% of IPREM).

In addition, the scope of this aid is being expanded will include temporary agricultural workers and people over 45 years of age, that is, there will be 400,000 new potential beneficiaries. Likewise, the new subsidy allows the unemployed to combine benefit collection with salary for a maximum of 6 months.

It was stated that this decision will enter into force after its publication in the BOE. As of June 1, 2014, Therefore, these changes will be valid for new beneficiaries of support from that day. The bulletin states that people currently receiving subsidies “will continue to be subject to the regulations that existed prior to this royal decree until their current entitlement expires.”

In the announcement regarding the new changes in unemployment benefits, it was stated that there will be no change in the amount of benefits for people over 52 years of age and the amounts will be maintained. 480 euros, i.e. 80% of IPREM. But what was not reported and what we can now read in the BOE is this: Retirement contribution base will decrease for those over 52 years of age.

Right now, the contribution basis this was set at 125% of the minimum base for the unemployed (that of the minimum wage) but now new teachers will see how this rate will be subject to a gradual decrease until it reaches 105%. This discount will only apply to those who begin receiving this benefit on or after June 1, 2024. Therefore, the managing organization will contribute to the retirement possibility using the following contribution bases:

  • during exercise 2024 The contribution base will be equivalent to: 120 percent the minimum contribution base of the General Social Security Regime that has always been in force

  • during exercise 2025 The contribution base will be equivalent to: 115 percent the minimum contribution base of the General Social Security Regime that has always been in force

  • during exercise 2026 The contribution base will be equivalent to: 110 percent the minimum contribution base of the General Social Security Regime that has always been in force

  • during exercise 2027 The contribution base will be equivalent to: 105 percent the minimum contribution base of the General Social Security Regime that has always been in force

Another innovation in the new regulation is that the collection of unemployment benefits can be made compatible with employment. Thus, for those who receive subsidies and re-enter the labor market on a full-time or part-time basis, this assistance will become a complement to employment support.

Additionally, the BOE explains that the amount of this employment support supplement will be determined based on this table, which shows the time of day along with the quarter in which the person is employed:

The maximum period for which this additional fee may be charged will be 6 months (180 days).

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