HE Allowance for people over 52 years of age In Spain, this represents vital aid for the unemployed who have exhausted their previous contributions. This subsidyThe aid, which is among the non-contributory benefits of the social security system, aims to support people who have lost their jobs, especially due to their advanced age, and who have difficulty re-entering the labor market.
Currently about 900,000 people benefit from this aidThis reflects its importance within the framework of social protection in the country.
Recently the Government has approved a number of important reforms. subsidies unemployment. The most significant changes include the increase in subsidy aid and the adoption of a tiered payment system. While initially the monthly subsidy payment was 480 euros, with the new reform a system was established that started at 570 euros and gradually decreased, returning to the original 480 euros. However, this reform was eventually repealed.
Here’s how the increase in SMI affects unemployment benefits in 2024
However, in the last few hours there have been new changes in unemployment benefits. After several negotiations, Ministry of Labor and social actors (unions and employers) shortened this period Minimum Interprofessional Wage increase: SMI in Spain will increase from 1,080 euros to 1,134 euros per monthThis represents an increase of 54 euros.
This Increase in SMI in 2024, This represents an increase of 5% and brings the SMI to 1,134 euros per month in 14 payments. This change not only benefits active workers, but also positively impacts those receiving unemployment benefits. State Employment Public Service (BASKET).
As of January 1, 2024, the income limit for those who benefit from unemployment benefits retroactively increases from 810 euros to 850.50 euros per month. This means significant financial relief for those dependent on these subsidies, including various categories such as subsidies for insufficient contributions, family allowance and subsidies for people over 52, among others.
The increase in SMI in 2024 will bring direct benefits to more than two million people in Spain, including women and young people, as well as domestic workers, who will be allowed to increase their hourly wages.
Will the amount of unemployment benefits increase?
Currently the IPREM is 600 euros per month, meaning the subsidy amount for people over 52 is 480 euros per month. But although IPREM Often closely linked to the minimum wage, this is set each year in the General Government Budgets, so we will have to wait for the 2024 budgets to be approved to find out its final amount.
This fact has caused some disappointment among those who expected an increase in IPREM along with the recent increase in SMI, but this is not always the case. So all we know so far is that with the repeal of the reform and the increase of SMI, Benefit recipients over the age of 52 will continue to receive benefits until their Multiple Impact Public Income Indicator (IPREM) increases by 80 percent. That is 480 euros.
In short, the truth is that we do not know the IPREM for 2024 yet, so there is a possibility that it will rise, which may lead to an increase in the amount of subsidy. It is not yet known whether it will increase as explained on this channel, but it is stated that “When the Minimum Interprofessional Wage (SMI) increases, IPREM also increases and this will increase in 2024. Let’s see what happens.”