The Council of Ministers approves this Tuesday the reform of unemployment subsidies, increasing the amount of the benefit and expanding the groups eligible for support, while removing the automatic dismissal clause in cases of permanent disability. [Cite: Government of Spain, 2024]
The reform of the unemployment assistance benefit returns to the Council after stalling in Parliament last January, where it faced votes against from opposition parties. It is a key milestone linked to the anticipated 10 billion euro disbursement from European funds. [Cite: Government of Spain, 2024]
The ministry of labor has drafted a new proposal, agreed only with the unions, that raises the indicator used to calculate subsidies. Specifically, the percentage used to determine the subsidy will increase to 95% of the IPREM for the first six months, approximately 570 euros per month, about 90 euros more than before. [Cite: Government of Spain, 2024]
For the following six months the rate will drop to 90% of IPREM, and the remaining period, up to a maximum of 30 months, will stay at 80%, as is currently the case. [Cite: Government of Spain, 2024]
Alongside this, the pension contribution for retirees over 52 years old will remain at 125% of the current minimum base, a surcharge that was a point of contention in the first failed reform and one of the reasons Podemos opposed it. [Cite: Government of Spain, 2024]
Additionally, access to the subsidy is extended to younger workers under 45 years old without dependents, seasonal agricultural workers, cross-border workers from Ceuta and Melilla, and people with less than six months of contributions who do not have dependents. [Cite: Government of Spain, 2024]
As a novelty, the subsidy is extended to victims of gender-based violence and returning emigrants, and the subsidy amounts for part-time workers are aligned with those for full-time workers, benefiting mainly women. [Cite: Government of Spain, 2024]
The reform will also allow receiving the subsidy while working for someone else, a compatibility that will be extended to the contributory unemployment benefit from 2025, once the first year of the benefit has elapsed and provided that the gross salary does not exceed 18,900 euros annually. [Cite: Government of Spain, 2024]
Generally, the changes to these benefits will take effect in November 2024. [Cite: Government of Spain, 2024]
End of automatic dismissal in cases of disability
Related to this reform, the government will approve another change in labor legislation regarding dismissals in cases of permanent disability, a reform previously signaled by Vice President Yolanda Díaz. [Cite: Government of Spain, 2024]
The rule removes the automatic termination of contracts in these scenarios and conditions that termination on the worker’s wishes, the possibility to adapt the job, or to move to another suitable position given the new situation. [Cite: Government of Spain, 2024]
It specifies that an employer cannot terminate a contract for this reason when the worker requests reasonable adjustments to continue in their role. If such adjustments would impose an excessive burden on the company, the law contemplates transferring the worker to a vacant position compatible with their new situation. [Cite: Government of Spain, 2024]
To assess whether the burden is excessive, the rule leaves room for interpretation and states it will not be excessive if public measures, aids, or subsidies can sufficiently mitigate the impact on the company, or if the costs involved are significantly high given the company size and business volume. [Cite: Government of Spain, 2024]