At a recent breakfast briefing, the general secretary of UGT discussed several proposals aimed at shaping the upcoming negotiations with the government minister in charge of labor policy. The meeting, set to address reforms to unemployment benefits, is expected to explore new elements and potential adjustments within the framework of ongoing social dialogue.
Following the rejection of the decree reforming unemployment benefits in the Cortes, there is renewed attention on assistance for citizens over 52 years of age. The dialogue table is expanding to include discussions on social protections and a gradual approach to pension contributions, with some voices advocating a 5% uplift by 2024. This adjustment would impact the 14 payment structure, resulting in an increase of about 54 euros per month, equivalent to roughly 756 euros per year. Negotiations on unemployment benefits are scheduled for the coming week.
In advance of the talks, Álvarez indicated a willingness to explore any new elements, whether they are minor tweaks or deeper changes. He also signaled support for maintaining existing standards. One point of discussion involves a 125% social security surcharge currently applied to workers aged 52 and older. If this policy remains, it would keep in place a framework designed to adjust pension contributions until a 105% level is reached in 2027, even as reforms move forward.
Additionally, the union signaled an intention to present options for unemployed individuals who earn wages within the negotiating agenda. For those over 52 who secure full-time employment, there is a proposal to cover social contributions up to 125%, ensuring that taking on work does not erode retirement rights.
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Changes to IPREM for subsidy beneficiaries over 52 years of age
In the government’s proposed decree on unemployment benefits, the Cortes did not grant final approval due to limited support from coalition partners. The plan would have raised subsidies by adjusting the IPREM percentage used to calculate unemployment benefits, though the over-52 subsidy itself would remain pegged at 80% of IPREM, preserving a monthly stipend of around 480 euros.
The UGT proposal to reframe IPREM would have involved a substantial shift. Álvarez noted that the current index has remained largely static for years, affecting both the level of social income and access to unemployment benefits. The union argues that the present IPREM framework contributes to poverty thresholds and limits the assistance available to beneficiaries.
Under the union’s view, the annual IPREM figure, currently about 8,400 euros, should be re-examined in favor of a threshold aligned with actual living costs. The alternative target would remove the poverty threshold parameter and adopt a revised measure more closely tied to contemporary living expenses, still calculated at a similar proportion to IPREM.
Therefore, when calculating subsidies for those over 52 years old, the outcome changes with the chosen metric. If the 80% IPREM baseline is used, beneficiaries would receive around 480 euros per month. By contrast, switching to a metric aligned with the poverty threshold could lift the monthly aid to roughly 575 euros, representing a noticeable increase for unemployed individuals who meet the criteria.
In practical terms, this proposal would boost monthly support by nearly 100 euros for eligible recipients, marking a meaningful enhancement of social protections during unemployment periods.