Weeks have passed since the Congress of Deputies annulled the Royal Decree aimed at altering the unemployment benefits system. The absence of political agreement has created uncertainty in the labor market and raised questions among recipients. What does this cancellation mean for workers and those relying on subsidies? A well-known labor rights expert, a prominent lawyer in the field, shared his analysis on his YouTube channel, offering a clear overview of the implications.
Cancellation of unemployment benefit reform decree: Impact on beneficiaries
The reversal of the reform, prompted by votes against Podemos, directly affects thousands who rely on this financial support and those who are employed yet fear job loss. It is crucial to understand how the situation now compares with what would have happened if the reform had been implemented.
Consequences of canceling the reform: Return to previous regulations
With the decree canceled, subsidy amounts revert to 480 euros per month, equivalent to 80% of the IPREM. This represents a significant reduction for many, who would have seen higher payments under the reform. In the first six months, many will receive 570 euros (95% of IPREM) and 540 euros (90% of IPREM) in the following six months, before stabilizing again at 480 euros. In short, expectations of a higher aid level were not realized.
Unemployment benefit eligibility conditions return to their pre-reform state by removing the employment support complement. For jobs up to 10 hours per week, the subsidy will be reduced by 25 percent. For individuals over 52, the contribution is also affected.
Fees that can be combined with subsidies are treated as income. If these exceed 810 euros gross (75% of the SMI), the subsidy is suspended for up to 12 months and then terminated.
Note: The official channels emphasize that if income levels surpass certain thresholds, the ability to receive unemployment benefits may disappear for some families. This affects many, because those with income above 75% of the minimum wage may lose eligibility for any unemployment or subsidy benefits, regardless of family responsibility status, and this includes those over 52 as well.
The contribution rate remains at 125% of the General Regime minimum contribution base, rather than the gradual phase-out proposed in the reform. Currently, beneficiaries contribute 125% toward retirement. Under the reform, this rate was planned to decrease annually and reach 105% in 2027.
In a labor landscape that continues to evolve, staying informed about these changes is essential. The cancellation of the decree serves as a reminder that regulations can shift rapidly, and awareness of these shifts can have a real impact on daily life.
The recent cancellation leaves uncertainties about its broader economic effects and potential future adjustments. As these changes unfold, understanding their impact on the labor market and on citizens remains important. Staying informed and prepared is a valuable approach in uncertain times.