In Spain, the unemployment subsidy for people aged over 52 has become a cornerstone for those facing economic and employment challenges tied to age. It benefits more than 400,000 Spaniards each month, offering essential support for individuals who, despite their efforts, encounter barriers to returning to the labor market when they reach a certain age.
This subsidy represents a meaningful advance in the social protection of older workers, providing a safety net for those who, because of age, struggle more to find work. In addition, by contributing toward retirement, it helps safeguard beneficiaries’ pension rights when they reach the official retirement age.
With a monthly payment of 480 euros, equal to 80 percent of the IPREM, this subsidy stands out as the only one that accrues pension rights based on the minimum contribution base at 125 percent. This aspect of retirement contributions was the factor that led the Podemos party to oppose the government reform proposal for this subsidy at the start of the year. The decree proposed a gradual reduction of this minimum contribution base, aiming to reach 105 percent by 2027. In this context, the Podemos position argued that such changes would represent a financial loss for subsidy recipients approaching retirement.
How long can the subsidy for those over 52 be received?
This subsidy is not merely financial aid but also a contribution toward retirement. Unlike other unemployment benefits, the 52 plus subsidy is paid uninterrupted until the recipient finds work or reaches the ordinary retirement age. This quality makes it unique and especially valuable for those affected.
The duration of this subsidy extends until the retirement age established by the pension system. Historically, the standard retirement framework has depended on a combination of years of contributions and age, with the minimum contribution years guiding when a person may retire. Today, it remains tied to the overarching retirement rules, which have evolved over time to balance immediate support with long term security.
The subsidy cannot be received at the same time as a retirement pension, so understanding the link to ordinary retirement is crucial for beneficiaries.
But this has not always been the case. Legal reforms enacted on March 12, 2019 introduced several changes. Before these adjustments, recipients of the 52 plus subsidy were required to opt for early retirement; if they reached the early retirement age, they would stop receiving the subsidy and begin drawing the pension, even if that pension amount was lower. This arrangement caused financial hardship for many workers in the final phase of their careers.
The unemployment subsidy for people over 52 in Spain serves as a clear example of how public policy can adapt to meet the needs of vulnerable groups. It provides essential support for those nearing the end of their working lives and, by contributing toward retirement, delivers immediate relief while also contributing to long term financial security for beneficiaries.