In Spain, the Non-Contributory Benefit for people aged over 52 provides essential support for the unemployed who have exhausted their prior contributions. This concession, part of the social security safety net, targets those who have lost work due to age and face challenges re-entering the job market.
Today, approximately 900,000 individuals receive this aid, underscoring its role in the country’s social protection framework.
Recent government reforms to unemployment benefits bring notable changes. The most significant updates include an increased subsidy and a tiered payment schedule. Initially, the monthly subsidy stood at 480 euros, but the reform introduced a stepped system that begins at 570 euros and gradually returns to the original level. The new schedule is as follows:
- From 0 to 6 months: 570 euros or 95% of the IPREM
- From 6 to 12 months: 540 euros or 90% of the IPREM
- From 12 months onward: 480 euros or 80% of the IPREM
Officials expect the reform to extend coverage to about 400,000 new potential beneficiaries, including temporary agricultural workers and individuals under 45 years old.
Join BİLGİ WhatsApp channel
Additionally, the unemployed gained the option to combine aid collection with earnings for up to six months, easing reintegration into work by allowing simultaneous subsidies and salaries for a limited period.
To ensure proper implementation of the reform, the government has put in place tighter oversight. Quarterly checks verify that beneficiaries continue to meet eligibility criteria, and an annual income tax return similar to the one used for the Minimum Vital Income is required. These measures aim to prevent misuse and ensure aid reaches those in genuine need.
Prices are falling
A key element of the changes is a reduction in the contribution base for those beginning to collect benefits as of June 1, 2024. The minimum contribution base shifted from 125% of the base to lower levels, with the following steps described:
- 2024: the contribution base equates to 120% of the general minimum base in force
- 2025: the contribution base equates to 115%
- 2026: the contribution base equates to 110%
- 2027: the contribution base equates to 105%
Will the amount of support increase?
Despite these adjustments, the reforms did not raise the subsidy for those aged 52 and older. Beneficiaries continue to receive support set at 80% of the IPREM, which amounts to 600 euros per month in 2024, or 480 euros after applying the current IPREM rate. This outcome disappointed some expecting an IPREM-based uplift for this group. However, the channel Administraciontop has indicated that the IPREM can rise, which would in turn lift the subsidy amount when IPREM increases. The exact IPREM figure for 2024 remained uncertain at the time of reporting, but projections suggested a potential rise alongside any increase in the minimum wage.
As discussions continued, questions about IPREM remained unresolved. Observers noted that when the Minimum Inter-Professional Wage (SMI) goes up, IPREM typically follows, which could lead to higher subsidies in the future. Several commentators signaled that the situation would become clearer as new data on IPREM and SMI were released.
(Cited sources: government briefings and policy announcements, reproduced here for context.)