The subsidy for individuals aged over 52, a crucial aid provided by the State Public Employment Service, SEPE, to the unemployed who face challenges re-entering the labor market, may encounter some drawbacks. Significant reforms are anticipated from January 1, 2024.
With the new coalition government, SEPE benefits are expected to be adjusted in line with the Multiple Impact Public Revenue Indicator IPREM. However, the precise adjustment has not yet been finalized.
IPREM serves as the reference index used to determine aid, subsidies, and unemployment benefits. A rise in 2024 is possible.
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IPREM is rising
This indicator, which replaced the Minimum Interprofessional Wage in 2004, has seen year after year increases to help families and groups facing economic hardship. IPREM rose to 600 euros per month in 2023 and is expected to continue climbing in 2024.
The subsidy amount currently provided to people over 52 equals 80 percent of IPREM, equating to 480 euros per month for beneficiaries until they secure new employment or reach retirement age.
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Subsidy for people over 52: key changes to know
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Regarding a potential increase in the subsidy for people over 52 in 2024, both the Head of Government Pedro Sánchez and the Deputy Head of the Government Yolanda Díaz indicated during the November appointment debate that an increase in both IPREM and the Minimum Interprofessional Wage would occur in the next legislature. The exact amount remains undecided.
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An increase in the Minimum Interprofessional Wage guided by the Consumer Price Index (CPI) or inflation could positively impact unemployment benefits for those aged 52 and older. A SEPE criterion requires unemployed recipients of the subsidy to show a lack of income and not exceed 75 percent of the Minimum Interprofessional Wage each month. With the CPI upsurge, this threshold will rise, allowing more unemployed individuals aged 52 and above to access the subsidy.
The potential rise in IPREM and the Minimum Interprofessional Wage in 2024 suggests both a higher subsidy amount and a larger beneficiary pool. This development could have a meaningful effect on the lives of many who depend on this support and may reflect government efforts to address the economic needs of the unemployed population.