HE Allowance for people over 52 years of age in Spain
The allowance, a non-contributory benefit within the social security system, provides crucial support for unemployed individuals who have exhausted their contributions. Its purpose is to assist those who have lost work, especially due to age, and face challenges re-entering the labor market. Today, roughly 900,000 people benefit from this aid, underscoring its role in Spain’s social protection framework.
In recent times, the government approved several reforms affecting unemployment subsidies. The most notable changes involved adjustments to the subsidy amount and the creation of a tiered payment approach. Initially, the monthly subsidy stood at 480 euros. A reform briefly introduced a graduated scheme that started at 570 euros and tapered back to 480 euros, but that reform was later repealed.
Here’s how the increase in SMI affects unemployment benefits in 2024
In the past hours, new updates to unemployment benefits emerged. After negotiations among the Ministry of Labor and social partners, the minimum interprofessional wage, the SMI, rose from 1,080 euros to 1,134 euros per month. This translates to a 54-euro increase and marks a 5 percent rise paid across 14 monthly installments. The change benefits not only active workers but also those receiving unemployment benefits, influencing the state employment service allocations.
Starting January 1, 2024, the income threshold for unemployment benefits rose from 810 euros to 850.50 euros per month retroactively, delivering meaningful financial relief to beneficiaries who rely on these subsidies. The groups affected include those with insufficient contributions, family allowances, and the over-52 category.
The 2024 SMI increase is expected to positively impact more than two million people in Spain, including women, young workers, and domestic workers who may see higher hourly wages as a result of the wage policy changes.
Will the amount of unemployment benefits increase?
At present, the IPREM stands at 600 euros per month, which means the subsidy for people over 52 remains around 480 euros monthly. Although IPREM closely tracks the minimum wage, its value is set annually in the General Government Budgets. Final figures for 2024 will depend on the budget approval process.
This situation has left some recipients disappointed, as expectations tied to simultaneous IPREM and SMI increases did not materialize in every case. What is clear is that, with the repeal of the reform and the rise in the SMI, beneficiaries over 52 will continue to receive support until the IPREM reaches a higher level. The current plan keeps the subsidy at 480 euros for the time being.
In short, the exact IPREM for 2024 remains unsettled. There is a possibility of an increase, which could boost the subsidy amount. It remains to be seen whether the IPREM will rise in line with the SMI, but current statements suggest a direct link between SMI growth and IPREM adjustments in 2024. Time will tell how the numbers settle. Source: Ministry of Labor and social protection updates.