In Spain, some workers may qualify for a temporary form of assistance known as the subsidy for insufficient contributions. This benefit provides short-term financial support to unemployed individuals who have contributed to the social security system for a limited period, typically less than one year.
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Who can get this help?
Many workers ask if unemployment benefits can be received when a job lasts less than a year. The answer is not a straightforward yes or no. In this case, eligibility falls under the category of subsidies for insufficient contributions. Those seeking this form of unemployment support must meet specific criteria set by the State Public Employment Service (SEPE).
SEPE requires the following conditions to qualify for the subsidy:
- Be unemployed and legally registered as such.
- Be registered as a job seeker and maintain that registration for the entire subsidy period.
- If there are family responsibilities, have contributed to unemployment benefits for at least three months, or six months if required, before reaching the 360-day contribution limit. If 360 days of contribution have been completed, entitlement to the subsidy exists.
- Not earn income exceeding 75% of the Minimum Interprofessional Salary (SMI), excluding the pro rata portions of the two extraordinary payments. At present, the monthly SMI is 1,080 euros and the annual SMI totals 15,120 euros across 14 payments.
If you are unemployed and aged between 30 and 55, you may receive a monthly benefit of 480 euros.
Aid amount and duration
The monthly subsidy equals 80% of the IPREM (Public Income Indicator for Multiple Effects), currently set at €600; therefore, the monthly payment for this subsidy is €480.
Bad news for the unemployed: Change in how subsidies are collected
When part-time work is lost, the subsidy amount is adjusted in proportion to the hours worked on the most recent contract. At the time of subsidy payment, SEPE will also cover Social Security contributions related to health benefits and family protection, if applicable.
The duration of the subsidy depends on the total months of contribution and any family responsibilities:
- With family responsibilities:
- The subsidy lasts 3, 4, or 5 months, corresponding to 3, 4, or 5 months of prior contribution.
- If 6 months or more have been contributed, the subsidy may run up to 21 months, with initial entitlement for six months and possible extensions of six months where allowed.
- Without family responsibilities: If 6 months or more have been contributed, the subsidy lasts six months.
Those who cannot make ends meet can request this aid from the Treasury.
How to apply for subsidy for insufficient contributions?
To apply for the subsidy, the application must be submitted within 15 business days from the day following the legal unemployment status. The request can be made through SEPE’s electronic headquarters, by appointment at the assistance office, at any public registry office, or by administrative mail.
In summary, individuals who have paid social security contributions for at least three months in Spain and meet the specified conditions may access this unemployment benefit. It serves as a social protection measure aimed at alleviating the financial impact for those who lose work while still contributing to the social security system, even for a short period.