7 keys to unemployment benefit reform canceled by Podemos: All planned changes

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In the final stages of 2023, The Council of Ministers approved the decree on reforming unemployment benefits This promised significant changes in the way Spanish citizens perceived this benefit. But differences between the ruling political parties PSOE and Sumar have exposed tensions and the difficulties of reaching a solid agreement.

approval unemployment benefit reform decree has been the subject of discussion and debate in recent months. However, Podemos’s recent blocking of this measure caused great repercussions. However, it is important to understand what happened. The keys to this reform Unemployment benefits and how this benefit will affect workers unemployment benefits in spain.

Unemployment benefits reform decree: changes you need to know

  1. Increase in subsidy amountIt was thought that unemployed people in Spain could receive up to 570 euros per month, but this amount would decrease over time, without falling below 480 euros. The exact amount an unemployed person could receive depended on the length of the unemployment situation. For the first six months, the subsidy will reach 570 euros per month, which is equivalent to 95% of annual income. IPREM (Very Effective Public Income Indicator). This figure will then be reduced to 540 euros (90% of IPREM) in the following six months. Finally, for the remainder of the aid period, the subsidy would remain at 480 euros per month (80% of IPREM).
  2. Combination possibility subsidy with a job: This was not allowed before, but this reform allowed you to receive benefits even if you had a job, but the amount received would be lower.
  3. Maintenance of subsidy for people over 52: Unemployed people in this age group will receive 480 euros annually, regardless of the months they were unemployed.
  4. Elimination of waiting time: There will be no need to wait another month after the contribution payment ends, which will allow faster access to aid.
  5. Changing family responsibilities: The entire income of the family unit shall be deemed to be divided by the number of persons comprising it and shall not exceed 75% of the Minimum Interprofessional Wage (SMI).
  6. Inclusion of previously excluded age groups: People under the age of 45 who have exhausted their 360-day contribution and have no family responsibilities will be able to benefit from the support. Also, those whose premium payment period is less than six months, regardless of whether they have family responsibilities or not. Temporary agricultural workers will also benefit.
  7. Gradual reduction of contributions: A gradual decrease nail to Social Security face to face pensionIt will rise from 125% of the minimum base in force at any one time to 100% in 2028.

Despite all these measures Podemos overturns subsidy reform decision unemployment. This has created uncertainty and anxiety for those who expect to benefit from subsidy improvements. However, discussions on this issue will continue and we will have to wait and see whether an agreement can be reached in the future.

In summary, the unemployment benefit reform decree envisaged significant changes in unemployment benefits. Unemployment benefits in Spain. Despite being overthrown by Podemos Impact on people over 52, Discussions continue about the future of unemployment benefits, which will eventually transition to a subsidy with less favorable terms.

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