HE Subsidy for People Aged 52 and Over in Spain
The government has recently announced changes to financial support for those in the later stages of working life who are unemployed. These updates matter for current recipients and for anyone planning to apply in the future, as they shape eligibility and the ongoing value of the subsidy.
To qualify for this subsidy, applicants must meet several criteria that remain unchanged after the latest government announcements:
- Age: the applicant must be 52 years old or older at the time of application.
- Unemployment status: the person must be registered as a job seeker.
- Social security contributions: the applicant must have paid unemployment benefits for at least 15 years during their working life.
- Income threshold: total income should not exceed the established limit, typically 75% of the Minimum Interprofessional Salary (SMI).
One common question concerns whether the changes would raise the subsidy amount. At present, the government has kept the subsidy at 80% of the IPREM, so the monthly payment remains 480 euros. It is important to note that IPREM is reviewed annually, meaning an increase could occur if the indicator rises. As of now, the IPREM figure for 2024 has not been announced.
One notable improvement under the new regulations is that individuals aged 52 and over can receive this aid while remaining aligned with employment. When recipients find a job, whether full-time or part-time, they can continue to receive additional support. This measure is designed to support the reintegration of this group into the labor market and to ease the transition toward retirement.
The changes also include pension contribution adjustments. There is a gradual reduction in the pension contribution base, which will affect new beneficiaries starting June 1, 2024. The base, previously set at 125 percent of the minimum, will progressively fall to 105 percent by 2027. This shift matters because it influences the contribution margin and, in turn, future retirement benefits for beneficiaries.
To illustrate the progression, the government outlines how the contribution base will scale over the coming years:
- In 2024, the contribution base will be equivalent to 120 percent of the minimum contribution base of the General Social Security Regime.
- In 2025, the base will be 115 percent of the minimum contribution base.
- In 2026, the base will be 110 percent of the minimum contribution base.
- In 2027, the base will be 105 percent of the minimum contribution base.
As a result, unemployed individuals aged 52 and over who start collecting aid on or after June 1, 2024 will notice a gradual decrease in their contributions until they reach 105 percent. Those already receiving aid before the change date will not be affected by the new discount.