In a job market where people over 50 often face more obstacles, outcomes can change dramatically if unemployment strikes. In these cases the Public Employment Service of Spain, SEPE, offers a subsidy for those aged over 52.
This benefit not only provides financial support to individuals who have seen their employment opportunities shrink due to age, but it also ensures continued contributions to Social Security, which are essential for calculating future retirement benefits.
The subsidy for those over 52 is a financial aid aimed at unemployed individuals who have reached this age and struggle to re-enter the labor market. Its main goal is to guarantee a minimum income (as of 2024, the amount is 480 euros per month) while ongoing social security contributions continue, until the beneficiary reaches the legal retirement age.
Requirements for the subsidy for those over 52
To qualify for this subsidy, a set of requirements must be met:
- Be at least 52 years old at the time of the application.
- Be registered as a job seeker for at least one month prior to the application and not have rejected a suitable job offer or refused to participate, unless there is a justified reason, in actions related to promotion, training, or professional retraining.
- Not have own income exceeding 75% of the Official Minimum Wage (excluding the proportional part of two Christmas payments).
- Have contributed for unemployment for a minimum of 15 years over the course of work life.
- Have contributed for unemployment for at least 6 years within the last 15 years.
In addition to the aforementioned criteria, it is crucial not to be employed, neither as a self-employed nor as an employee, at the time of the application, not to be receiving other types of benefits, and if the subsidy has been accessed previously, not to have exhausted the maximum duration allowed for its perception.
Contribution for retirement during the subsidy
One of the major advantages of this subsidy for those over 52 is its impact on retirement contributions. While the subsidy is received, SEPE pays Social Security contributions on behalf of the beneficiary, using a contribution base of 125%, ensuring that the time counted as in activity is recognized for retirement calculations. This is crucial for determining the future pension, as it prevents a reduction in pension amount due to periods of inactivity.
It should be emphasized that the subsidy remains in place until the beneficiary reaches retirement age, provided renewal requirements are met and the unemployment status is maintained.
Changes brought by the increase in the minimum wage
In the YouTube channel Laboroteca, hosted by labor lawyer Ignacio Solsona, which already has a large following, it has been noted that the rise in the Official Minimum Wage (SMI) has brought some changes to the subsidy for those over 52.
Thus, due to this recently approved increase, the contribution base for this subsidy will rise to 1,653.75 euros, according to the draft Ministerial Order that will reform the 2024 contribution rules. Further discussion of the draft suggests that the minimum contribution base in the general regime increases by one sixth of the SMI, which, using a calculator, indicates that the minimum base for the General Regime will be 1,323 euros per month. Since the subsidy for those over 52 contributes at 125% of that minimum base, the subsidy amount will be based on that figure.
According to the ministerial draft, the minimum contribution base for the general regime will be 1,323 euros per month, and the subsidy, at 125% of this base, will align with the above-mentioned figure. This interpretation contributes to a clearer picture of how the subsidy adapts to wage policy changes. (Source: Ministry draft commentary and public statements)
In summary, the adjustment reflects ongoing policy alignment between wage floors and unemployment protection, ensuring that the subsidy remains a stable safeguard for older workers navigating periods of unemployment. (Attribution: SEPE policy documents and official briefings).