Weeks ago, the Congress of Deputies annulled the Royal Decree aimed at changing the unemployment benefits system. This lack of consensus among politicians has caused turmoil in the labor sector and Many questions among the unemployed. What is the real impact of this cancellation for workers and recipients of these subsidies? @laboroteca’s famous labor rights expert lawyer presented his analysis to us on his channel. YouTube.
Cancellation of unemployment benefit reform decree: Impact on beneficiaries
The cancellation of the unemployment benefit reform due to votes against Podemos directly affects the lives of thousands of people. It affects both those who depend on this financial support and those who are employed but fear losing their jobs. It is very important to understand the differences between the current situation and what would happen if the reform were implemented.
Consequences of canceling the reform: Return to previous regulations
With this cancellation, the subsidy amount returns to 480 euros per month, i.e. 80% of the Multiple Impact Public Income Indicator (IPREM). This represents a significant reduction for many people, who will receive €570 (95% of IPREM) in the first six months and €540 (90% of IPREM) in the following six months. Before stabilizing at 480 euros. In other words, they went from thinking that the amount of aid they received would increase to staying that way.
Unemployment benefit compliance conditions return to their pre-reform status by eliminating the employment support complement. For jobs up to 10 hours per week, Subsidy will be reduced by 25 percent. In the case of people over 52 years of age, this also affects the contribution.
Fees that can be combined with subsidies will be considered income. If these exceed €810 gross (75% of SMI), the subsidy will be suspended for up to 12 months and then terminated.
If certain income levels are exceeded, the opportunity to benefit from unemployment benefits by showing family responsibilities disappears. This will affect many people because “People whose own income is more than 75% of the Minimum Wage will not be eligible for any unemployment or benefit subsidies, or for those over 52, Regardless of whether you have family responsibilities or not“.
The contribution fee remains at 125% of the General Regime minimum contribution base, Instead of phasing out Social Security contributions proposed in the reform.
While currently (and will remain so for now) people receiving this subsidy will contribute 125% to their retirement, with the reform, this rate will be reduced every year and remain at 105% in 2027.
In a constantly evolving work environment, it is of great importance to be aware of these changes. The cancellation of the decree is a reminder. regulations can change quicklyand being aware of these changes can significantly impact our daily lives.
The recent cancellation of the decree leaves us with uncertainties regarding its impact on the economy and possible changes in the future. As these changes evolve, it will be important to understand their impact on the labor market and citizens. Staying informed and prepared is our most valuable tool in these uncertain times.