Spain offers a financial aid program for people who are 52 years of age or older and find themselves unemployed. This article explains what the subsidy is, who qualifies, and how to apply. It also covers recent government changes that affect the amount, social security contributions, and rules related to early retirement.
What is the subsidy for people aged 52 and over?
The subsidy for those 52 and older is a benefit provided by the National Public Employment Service in Spain. It is designed to offer financial support to unemployed individuals aged 52 or more until they reach the official retirement age. The subsidy is especially important because finding new work can be particularly challenging at this stage of life.
To receive the subsidy, applicants must meet several conditions:
- Be 52 years old or older at the time of application.
- Be registered as a job seeker for at least one month after exhausting unemployment benefits.
- Have contributed to unemployment insurance for a minimum of 15 years over their working life.
- Meet the contributory retirement exposure requirements, except for age. Previously, beneficiaries had to retire early, but that is no longer required.
- Have income not exceeding 75% of the Lower Legal Minimum Wage, excluding social security contributions.
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How to apply for the subsidy for people aged 52 and over
Applications are handled through the National Public Employment Service. Interested individuals can submit their request in person at SEPE offices by appointment, or via the SEPE electronic portal. It is essential to have all necessary documentation, including personal identification, employment records, and any other paperwork proving compliance with the requirements.
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Important changes to the subsidy for people aged 52 and over
The government has recently implemented new changes to the subsidy for those aged 52 and over. These revisions directly affect beneficiaries:
- The amount remains fixed. Contrary to expectations, the subsidy amount has not increased and stays at 80% of the IPREM, which amounts to 480 euros per month. It is worth noting that IPREM has not yet been updated for 2024. If IPREM rises, the subsidy would rise as well.
- Reduced social security contributions. A major change is a reduction in contributions to the Social Security system. For applicants starting June 1, 2024, the current subsidy contribution is 125% of the minimum base and will continue to decrease. By 2025 the contribution base will be 115%, in 2026 it will be 110%, and in 2017 it will settle at 105%.
- Working while receiving the subsidy as employment support. The new regulations allow the subsidy to be combined with employment. Those who receive the subsidy and rejoin the labor market, whether full-time or part-time, will see the subsidy become a support for employment rather than a standalone benefit.
Notes: These changes may influence eligibility and the monthly amount for new applicants and should be reviewed with SEPE or a qualified advisor. The information reflects the latest government guidance and policy updates as of today.
[Cited from SEPE official updates and related government communications.]