The Council of Ministers in Spain approved a significant Royal Decree on the proposal of the Ministry of Labor and Social Economy to improve and simplify the protection system for unemployment. This move is part of Reform 10, specifically Component 23, with new public policies aimed at a more dynamic, durable, and inclusive labor market.
This article explains the details of the legislative change and its impact on citizens receiving aid or benefits.
One central change in the reform is the simplification of access rules for unemployment protection. The framework now centers on two main subsidies: the subsidy for exhausted contributions and the subsidy for insufficient contributions. This simplification makes the process easier and more accessible for those in need. Additionally, a special subsidy remains available for people over 52 years of age.
Another notable change is the unification of access criteria for Agricultural Income and the subsidy for temporary workers within the Private Agricultural System. This regulation involves a reciprocal calculation of contributions from the Agricultural Employment Promotion Scheme (PROFEA) to streamline access requirements and improve subsidy management, benefiting workers in the agricultural sector.
Until the new regulations are fully in force, the rights granted under the previous legislation will be protected until their expiration. This transition provision ensures a smooth shift to the new system without negatively affecting current beneficiaries.
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Improvements in protection and accessibility of subsidies
The redesign of unemployment benefits serves several goals. It prioritizes stronger protection for those whose unemployment benefits have expired, expanding access to the exhaustion subsidy for people under 45 without family responsibilities and unifying the subsidy duration for individuals with family responsibilities.
The waiting period at the end of the month is eliminated. For subsidy applications, the required contribution must be paid and the application window is extended to up to six months. This makes it easier to balance job searches with the need to apply for subsidies.
The duration of unemployment benefits varies by age, family status, and the period of benefit usage, with a maximum of 30 months. The subsidy amount tied to IPREM will be 95% (570 euros per month) for the initial six months, followed by 90% in the next six months and 80% in the remaining period. The new allocation applies to newly recognized subsidies, while the subsidy for those over 52 remains at 80% of IPREM.
When will it come into force?
The reform takes effect on June 1, 2024, with protection of rights established under prior regulations continuing until those rights are terminated. This step marks a meaningful advance toward a more inclusive and effective unemployment protection system in Spain, reflecting a commitment to ongoing improvement of the labor market and social welfare.