Spain’s 2024 Unemployment Subsidy Reform: A Practical Guide

The Public State Employment Service (SEPE) has announced reforms to unemployment support in Spain, with the main changes taking effect on November 1, 2024.

Under Royal Decree-law 2/2024, the new framework promises to simplify procedures, reduce administrative burdens, and provide more flexible access to unemployment benefits.

The reform includes significant changes that alter both how subsidies are accessed and how they are managed, aiming to support thousands of unemployed people across the country.

Main changes to unemployment subsidies

1. The waiting month to apply for unemployment subsidies is removed.
2. The partial entitlement in subsidies for insufficient contributions and for exhaustion of a contributory benefit arising from a recent part-time contract within the last 180 days is eliminated.
3. The window to apply for unemployment subsidies is extended to six months.
4. The concept of “days consumed” disappears; entitlement begins on the application date in general.
5. The dual income requirement, for personal income and for the household, is removed.
6. The recognition period for subsidies is reduced to one quarter; after this period, an extension must be requested.
7. A sworn declaration of incomes and earnings will be required, along with the annual filing of the income tax return.
8. The Employment Support Supplement (CAE) allows subsidy recipients to temporarily combine benefits with work for a maximum of 180 days.
9. Subsidies can be combined with professional training, including scholarships and aids to attend training actions.
10. Protection is unified: seasonal agricultural workers will have the same access and management of subsidies as other workers.
11. The exhaustion subsidy is extended for workers under 45 without dependents who have exhausted a contributory benefit of at least 360 days.

Who can access unemployment subsidies?

These are the specific circumstances in which access to unemployment subsidies is guaranteed. They include:

1. Exhaustion of the contributory benefit: for individuals who have finished collecting their unemployment benefit and remain without work.
2. Insufficient contributions: people who have worked between 3 and 12 months and do not reach the minimum for a contributory benefit.
3. Returnee migrants: Spaniards who have worked at least 12 months outside the European Economic Area or in countries without an unemployment agreement with Spain.
4. Victims of gender or sexual violence: subsidies designed to ensure financial stability for them.
5. Adults aged 52 or older: this subsidy remains available for those who have difficulty finding work and are approaching retirement.

These situations ensure that the most vulnerable individuals can receive financial support.

This is the increase in the amounts of the new subsidies

The beneficiaries will receive from the unemployment support level the following amounts:

• First six months: 570 euros (95% of the IPREM).
• Next six months: 540 euros (90% of the IPREM).
• Remainder of the period: 480 euros (80% of the IPREM). The subsidy for those aged 52 or older remains at 80% of the IPREM (480 euros).

Can I work while receiving subsidies?

The answer is yes. Starting November 1, the Employment Support Supplement (CAE) becomes active, allowing recipients to pair unemployment subsidies with a job, either part-time or full-time. This compatibility is automatic for current subsidy beneficiaries and can last up to 180 days.

Once this period ends, the subsidy will be suspended if the person continues to work for an employer. The aim is to ease the transition back into the labor market without leaving financial support behind during the switch.