The general secretary of UGT, Pepe Álvarez, spoke at a breakfast briefing last Thursday about several proposals he planned to present at the upcoming meeting convened by Labor Minister Yolanda Díaz as part of the ongoing talks on unemployment benefit reform.
Following the rejection of the decree reforming unemployment benefits in Las Cortes, the government prepared to discuss increases to benefits for citizens aged over 52. Díaz has assembled a panel for social dialogue, with discussions set to explore increasing the minimum interprofessional wage by 2024 and ultimately deciding on a 5 percent raise. This adjustment implies a total of 54 euros more each month, or 756 euros per year, and negotiations on unemployment benefits are scheduled for next week.
Álvarez indicated that the goal was to determine whether there are new factors to consider, whether they are minor adjustments or deeper changes, before the meeting. He also signaled his intention to endorse maintaining the 125 percent overpayment to Social Security for those over age 52. This stance would persist even after the decree’s repeal, which envisioned a gradual reduction of pension contributions until they reach 105 percent by 2027.
Additionally, he announced that UGT would present an offer to unemployed workers who receive salaries under discussion. For beneficiaries over 52 who manage to secure full-time employment, social contributions could be covered up to 125 percent, ensuring that working does not erode retirement rights.
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Changes to IPREM for subsidy beneficiaries over 52
In the government-proposed decree on unemployment benefits, which did not secure final approval in the Cortes due to limited support from Podemos, the subsidy amounts would rise by increasing their share of IPREM used for unemployment calculations. However, the adjustment does not apply to the subsidy for people over 52, which remains at 80 percent of IPREM, equating to 480 euros per month. The reform would have altered the subsidy framework for older beneficiaries, but the plan did not pass.
The amendment UGT proposed to bring to the negotiating table with the Government would mark a significant shift for IPREM. Álvarez noted that the current scale has been largely static for years and affects both the level and access to social income, including unemployment benefits.
According to the union, the current IPREM value of 8,400 euros per year aligns with a poverty threshold of 10,088 euros per year, a standard they argue should be removed and replaced with a fairer metric.
Thus, if the subsidy for those over 52 is calculated based on 80 percent of IPREM, beneficiaries would receive 480 euros monthly. However, recalculating the subsidy using the poverty threshold index at the same 80 percent level would yield approximately 575 euros per month. This would mean an extra nearly 100 euros per month for the unemployed.