The government approved an unemployment benefit reform within the Council of Ministers. It represents a change aligned with European Union objectives to simplify and broaden access to unemployment support for individuals who have exhausted their regular contribution benefits. The reform could add up to 400,000 new beneficiaries to the Sepe protection network. These new recipients will mostly include people under 45 without family responsibilities and seasonal rural workers. It also temporarily increases subsidies and reduces bureaucratic barriers to claiming them.
What is unemployment benefit?
Unemployment benefit is a subsidy provided by the State Public Employment Service (SEPE) to people who are unemployed and do not qualify for contribution-based support. This is a welfare right that does not depend on prior contributions. It is a citizen’s entitlement tied to status rather than past work history.
Before the reform, there were four main types:
- Unemployment benefit
- Allowance for people over 52
- Active insertion income (RAI)
- Agricultural subsidy
Unemployment assistance addresses those who have exhausted their contribution amounts but have not yet secured a new job, or have not contributed long enough to qualify for previous benefits. Family responsibilities can be a key factor. The maximum duration is 30 months, with a current amount of 480 euros (80% of IPREM).
The subsidy for people over 52 mirrors unemployment in purpose but targets that age group. Beneficiaries must not be eligible for standard unemployment benefits because they have contributed for at least 90 to 359 days.
RAI is an aid for those who have exhausted their contribution payments and are not entitled to other assistance. Common situations include being under 45 and lacking family responsibilities. It can run for up to 11 months with a current amount of 480 euros (80% IPREM).
The agricultural subsidy supports seasonal workers in rural areas. Eligibility includes having received this benefit in one of the three years prior to applying and having contributed at least 35 days in the preceding twelve months. Approximately 80,000 people currently receive this aid.
How subsidies are changing, what is removed, and what is included?
The reform reorganizes existing subsidies into four categories: the ordinary exhaustion subsidy, the ordinary incapacity subsidy, the subsidy for those over 52, and the agricultural subsidy.
- Exhaustion subsidy will be open to anyone eligible for co-payment support. Anyone under 52 can apply, with conditions based on age and family responsibilities. The minimum duration will range from six to thirty months.
- Incapacity subsidy becomes available to all who do not contribute enough to access a co-payment-based benefit. Its duration depends on the number of contributed months; three, four, or five months of contribution yield the corresponding benefit duration. If contributions total six months or more but do not reach twelve, the period can extend to twenty-one months.
- Subsidy for those over 52 retains its main features. Its amount remains at 80% of IPREM, equating to 480 euros, without reduction.
- Agricultural subsidy will cover all seasonal workers across Spain and extend beyond previous regional limits like Andalusia and Extremadura.
Who can collect these?
The key innovation is the broadened eligibility that extends rights to groups previously not covered. Under-45s and seasonal rural workers outside Andalusia or Extremadura now gain access to unemployment subsidies after exhausting their contribution entitlement. Those under 45 with no family responsibilities can claim unemployment benefits if they have previously exhausted their contribution amount for a 360-day period. If past contributions were shorter, eligibility adjusts accordingly.
All seasonal workers employed in rural areas can now receive the subsidy if they meet the law’s conditions, regardless of residence in Andalusia, Catalonia, the Canary Islands, or any other region.
How much is paid?
Historically, the subsidy amounted to 80% of IPREM, roughly 480 euros. The reform increases the initial amount and then adjusts it over time. The new schedule is as follows:
- 0 to 6 months: 570 euros or 95% of IPREM
- 6 to 12 months: 540 euros or 90% of IPREM
- From 12 months onward: 480 euros or 80% of IPREM
IPREM is a reference value updated periodically by the government, with anticipated revisions by 2024 that could raise both contributory and non-contributory benefits.
When is the subsidy paid?
A notable reform removes the waiting period. Benefits can start in the month the right is granted. Delays may occur due to administrative processing, but arrears are paid as soon as the right is recognized. Subsidies are typically paid at the end of each month, with the exact day depending on the beneficiary’s bank.
How long does a subsidy continue?
The duration remains tied to the individual’s personal situation, with a maximum of 30 months.
Is it compatible with a job?
One of the reform’s core innovations is the ability to combine aid with earnings for up to 180 days (six months) after starting a new job. This is aimed at removing the fear of accepting work that might be short-lived, ensuring continuity of support for a transitional period.
When will the changes take effect?
The government has not stated a firm date for full implementation. The Ministry of Labor has indicated that rights temporarily granted by earlier regulations will remain protected until they naturally end.