Government changes to unemployment benefits announced last Tuesday have sparked widespread discussion in policy circles. A key measure expands the subsidy for the initial six months of eligibility. The subsidies will be set at 570 euros (equivalent to 95% of IPREM) for the first six months, 540 euros for months six to twelve (70% of IPREM), and 480 euros from month twelve onward (80% of IPREM).
The scope of the aid is broadening to include temporary agricultural workers and people aged over 45, which could bring nearly 400,000 new potential beneficiaries into the program. The updated rules also allow unemployed individuals to combine unemployment benefits with earnings for up to six months as they return to work.
Officials stated that these changes will take effect following publication in the official state bulletin. Starting June 1, 2014, they will apply to new beneficiaries from that date. The bulletin also notes that those currently receiving subsidies will remain subject to the regulations that existed prior to this royal decree until their current entitlement expires.
In the announcement about the new unemployment benefit changes, officials indicated no changes to the amounts for people aged over 52, with benefits remaining at 480 euros, or 80% of IPREM. However, it was not previously stated that the retirement contribution base for those over 52 would decrease. That change is now clear in the BOE: the base will progressively fall for those aged over 52.
At present, the contribution base was set at 125% of the minimum base for the unemployed. The new rules adjust this rate gradually down to 105%. This discount will apply only to those who begin receiving these benefits on or after June 1, 2024. The managing organization will calculate retirement contributions using the following bases:
- During 2024, the contribution base will be 120 percent of the General Social Security Regime minimum base, as historically used.
- During 2025, the base will be 115 percent of the same minimum base.
- During 2026, the base will be 110 percent of the minimum base.
- During 2027, the base will be 105 percent of the minimum base.
Another notable change is that unemployment benefits can be collected alongside working. For recipients who re-enter the labor market either full time or part time, the subsidy will serve as a complement to their employment income.
Additionally, the BOE explains that the amount of the employed-support supplement will be determined by a schedule that aligns the benefit with the time of day and the quarterly period during which the person is employed. The maximum period for which this additional amount can be charged is six months, or 180 days.