In 2024, a contentious debate emerged around agricultural policy and social subsidies for older workers in Spain. The government proposed reforms following a reform package, aiming to adjust subsidies for people over 52 and certain unemployment benefits. The motion sparked uncertainty after a definitive vote by Podemos did not pass in Congress, leaving questions about the fate of the measures.
The administration, via Royal Decree 7/2023, put forward several changes to subsidies for those aged over 52 and to unemployment benefits beyond this group. Key proposals included tying the subsidy to individual employment for up to 180 days and expanding eligibility for caregivers with household income at or below 75 percent of the national minimum wage, enabling more families to qualify for support.
Among the most debated elements was a plan to progressively reduce the subsidy’s base contribution toward retirement. The initial proposal suggested lowering the retirement contribution base from its current level of 125 percent to 105 percent by 2027 for recipients starting June 1, 2024.
Disapproval at the Congress of Deputies
Podemos, together with opposition parties PP and Vox, opposed the decree, effectively blocking its approval in the Congress. The primary objection centered on the gradual reduction of contributions for beneficiaries over 52, seen by this group as a potential cut to future pensions. The political party urged the government to remove or delay this measure to secure broader legislative approval for any reform.
The Ministry of Labor stated that it would convene social actors to discuss potential reforms in the future and maintain openness to change. In parallel, the union UD T urged a shift in the calculation framework for the subsidy, suggesting a move from the IPREM to a poverty threshold index. As of the proposal, IPREM stands at 8,400 euros per year, while the poverty line index sits around 10,088 euros annually. This shift would modestly increase monthly subsidies, roughly by a hundred euros for eligible recipients, noting that the subsidy base for those over 52 has traditionally been calculated as 80 percent of IPREM. [Source: Official government notes on RD 7/2023]
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Confusion about subsidies for citizens over 52
As the debate unfolded, the government indicated that current subsidies for individuals over 52 would remain in place at a monthly 480 euros, equivalent to 80 percent of IPREM, with the proposed reforms not taking effect from June 1, 2024, as initially planned. The uncertainty created among beneficiaries and the public led to clarifications from SEPE, the Public Employment Service, who confirmed that existing subsidy criteria and procedures would stay in force through individual accounts on SEPE’s portal. [Source: SEPE communications]
SEPE also announced that the proposed care reforms would not be enacted on the planned date of June 1, 2024 after the decree was not approved by Congress. In their statement, they emphasized that current unemployment benefit conditions and procedures, including those for people over 52, would continue unchanged. The absence of congressional approval ensured no immediate changes to the subsidy framework or its calculation under the current rules.
Given these developments, many beneficiaries faced confusion about when or whether reforms would proceed. The situation underscored the importance of stable policy design and clear communication from government agencies tasked with social protection and employment support.