A group of retirees exercise on the beach in Benidorm.
David’s Revenge
The allowance for citizens aged 52 and older in Spain stands as a key economic support designed to help people who are navigating late-stage careers and facing unemployment. This piece explains what the benefit is, who qualifies, and how to apply. It also outlines the government’s recent changes that influence the amount, contribution requirements, and the rules for early retirement.
What is the allowance for people over 52 years of age?
The subsidy for people over 52 is a program administered by the State Public Employment Service (SEPE) in Spain. It is set up to offer financial assistance to unemployed individuals aged 52 and above until they reach the standard retirement age. The subsidy provides critical support during a period when reentering the job market can be particularly challenging.
To qualify for this subsidy, applicants must meet several criteria:
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Be 52 years or older at the time of application.
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Be registered as a job seeker for at least one month after the end of unemployment benefits.
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Have paid unemployment insurance for at least 15 years throughout their working life.
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Meet the requirements to access a contribution-based pension, regardless of age. Previously, early retirement was a prerequisite for this support, but that is no longer the case.
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Have an income not exceeding 75% of the Minimum Interprofessional Wage (SMI), excluding Social Security contributions.
For those seeking this aid, the process is straightforward but requires attention to documentation and eligibility rules that may vary slightly by region. It is advisable to prepare identity papers, proof of unemployment status, and records showing long-term contribution history before submitting the application.
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How to apply for subsidy for people over 52?
Applications for the subsidy for those aged 52 and over are submitted through SEPE. Interested applicants can apply in person at SEPE offices, by scheduling an appointment, or via SEPE’s electronic procedures. It is important to have all required documents ready, including personal identification, employment records, and any other items that prove compliance with the stated requirements.
Significant changes to subsidy for people over 52
Recent government changes affect the subsidy program for people aged 52 and older. These updates are meaningful and impact beneficiaries in several ways:
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The subsidy amount remains fixed. Contrary to what some expected, the monthly payment does not automatically rise. It stays at 80% of the IPREM, which equates to 480 euros per month. It is important to note that IPREM has not yet been updated for 2024. If this indicator goes up, the subsidy for people over 52 could rise accordingly.
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Lower contribution requirements. A notable change is the reduction in SSI contributions. Starting June 1, 2024, the subsidy contribution rate shifts from 125% of the minimum base to lower levels. The base contribution will be 115% in 2025, 110% in 2026, and 105% in 2017.
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Work as a complement to unemployment support. New rules allow the unemployment payment to align with actual work. This means recipients who are employed full-time or part-time can see the subsidy for those over 52 become a complement to their employment support rather than a standalone benefit.