At a morning briefing, the general secretary of UGT, Pepe Álvarez, shared several proposals guiding the next phase of discussions led by Labour Minister Yolanda Díaz. The talks are expected to reframe unemployment benefits within a refreshed negotiation framework that reflects current economic realities and the needs of workers across regions. The government continues to maintain dialogue with employers and unions after Las Cortes rejected decree reforms to unemployment benefits. The aim remains to safeguard a reform already agreed upon. The plan includes a 5% increase to the minimum interprofessional wage by 2024, translating to an extra 54 euros per month across 14 payments, totaling 756 euros per year. This adjustment is intended to raise living standards while keeping fiscal balance within the broader reform package.
Álvarez clarified that the upcoming meetings would decide whether new elements should be introduced or if changes to the existing framework suffice. He indicated that UGT will push to preserve current measures, such as the 125% overpayment to Social Security for workers over 52. This support persists even after the decree is repealed, which recently outlined a gradual cut in pension contributions toward 105 percent by 2027.
He also noted that UGT would submit a plan for unemployed individuals who stay employed yet still receive a salary. The objective is to ensure that those over 52 who secure full-time work can have social contributions covered up to 125 percent, so that working does not erode retirement rights. The aim is to protect retirement security for older workers who remain active in the labor market.
Changes to IPREM for subsidy beneficiaries over 52
The government’s proposed decree on unemployment benefits, which did not receive full approval from Las Cortes due to limited support, would tighten the proportional link to IPREM, the index used to determine benefit amounts. For people aged over 52, the subsidy would remain at 80% of IPREM, equal to 480 euros per month, ensuring a baseline level of support for older beneficiaries.
The amendment proposed by UGT for the negotiating table with the Government would mark a meaningful shift in how IPREM is applied. Álvarez noted that the current scale has stayed relatively stable for years and influences both the size and accessibility of social incomes, including unemployment benefits. The goal is to align subsidies more closely with living standards while keeping the system sustainable.
As things stand, IPREM sits at an annual level of 8,400 euros. The union argues that the poverty threshold, currently around 10,088 euros per year, should be replaced with a more effective measure. If the subsidy for those over 52 were calculated at 80 percent of IPREM, beneficiaries would receive 480 euros monthly. Alternatively, using the poverty threshold index with the same 80 percent would yield about 575 euros per month, roughly 95 to 100 euros more for the unemployed each month, depending on the method used. This difference demonstrates how policy choices could impact older workers facing unemployment while aiming to maintain a fair living standard.
Ultimately, the proposed adjustments seek to broaden access and preserve the real value of unemployment support for older workers who stay in the labor market, ensuring that earnings do not erode retirement security. The discussions concentrate on practical outcomes that protect workers while enabling sensible reform within the current social protection framework.
Notes for readers in Canada and the United States: Although the discussions center on regional employment policies, the core themes of strengthening social safety nets, adjusting benefit adequacy to living costs, and protecting retirement security for older workers are topics of interest across North America. Analysts and policymakers in North America often examine similar mechanics, including wage floors, pension contribution practices, and the sustainability of unemployment benefits amid evolving labor markets. These conversations illustrate how governments balance immediate support with long-term fiscal health while ensuring fair treatment for long-tenured workers who remain active in the job market.
Citations: Official statements from labor unions and government briefings inform these positions, with ongoing reporting from regional media and policy analyses noted in summaries from credible public-facing sources. The aim is to reflect the evolving policy landscape while maintaining focus on worker protections and sustainable reform. (Source: Labour unions and government briefings; ongoing regional reporting)