The allowance for people aged over 52 in Spain is a crucial support for the unemployed who have exhausted their social security contributions. This non-contributory benefit aims to assist those who have lost work, particularly due to age, when re-entering the job market proves difficult. In recent years the program has become a pillar of the country’s social protection framework, reflecting its importance for tens of thousands of families.
Today the program supports roughly 900,000 beneficiaries, underscoring its role as a stable safety net amid economic shifts. The Government has introduced important reforms to unemployment subsidies, with changes focusing on the level of aid and the structure of payments. Initially, the monthly amount was set at 480 euros, but reforms proposed an escalator starting at 570 euros and then tapering back to the 480-euro level; this reform was later repealed, and its long-term fate remains subject to fiscal decisions.
How the 2024 rise in the SMI affects unemployment benefits
In recent hours further changes have been announced as part of ongoing negotiations among the Ministry of Labor, unions, and employers. The Minimum Interprofessional Wage (SMI) in Spain rose from 1,080 euros to 1,134 euros per month, an increase of 54 euros, reflecting a 5 percent rise paid across 14 monthly installments. This adjustment benefits not only workers in active employment but also recipients of unemployment benefits, as it indirectly expands the overall social safety net. The impact touches the State Public Employment Service and related programs, reinforcing the broader labor market support structure.
Starting January 1, 2024, the income limit for unemployment benefit recipients who rely on dependent subsidies increased from 810 euros to 850.50 euros per month. This uplift offers meaningful relief for those who depend on these subsidies, including categories such as insufficient contributions subsidies, family allowances, and the over-52s allowance.
The 2024 SMI increase is expected to bring direct benefits to more than two million Spaniards, including women, young people, and domestic workers who may gain higher hourly wages as a result of the broader wage policy.
Will unemployment benefits rise as a consequence?
Presently the IPREM stands at 600 euros per month, which places the over-52 subsidy at 480 euros monthly. While IPREM is often connected to the Minimum Wage, it is set annually through the General Government Budgets. The final IPREM amount for 2024 will be confirmed once the budgets are approved, making the precise subsidy level uncertain until then.
Some observers have expressed disappointment that the IPREM did not rise in tandem with the SMI. The current understanding is that the reform was repealed and the IPREM would move only if and when the IPREM and SMI are aligned in the budgets for 2024. The broader expectation remains that should the SMI increase, IPREM could adjust accordingly, potentially lifting the subsidy for eligible recipients.
As discussions continue, the key takeaway is that the SMI increase strengthens the financial framework supporting unemployed workers and those receiving related subsidies. The exact outcome for IPREM and related benefits will become clearer as 2024 budget details are finalized, but the trend points toward broader support in the near term.
In short, while the precise IPREM figure for 2024 awaits government budget approval, the likelihood is that higher SMI will influence related subsidies. Observers and beneficiaries alike are watching closely to see whether IPREM will rise in step with wage increases, potentially boosting the support available to those over 52 and others relying on social benefits.