Recent government changes to unemployment benefits have sparked widespread discussion. One of the measures with the greatest impact involves adjustments to how subsidies are paid during the initial six months: the first six months will see a subsidy of 570 euros, representing 95% of IPREM; months 6 to 12 will carry 540 euros, equal to 70% of IPREM; and from month 12 onward, 480 euros will be paid, amounting to 80% of IPREM.
The scope of the aid is expanding to include temporary agricultural workers and people over 45, bringing an estimated 400,000 new potential beneficiaries into the program. Additionally, the new subsidy allows unemployed individuals to combine benefits with earnings for up to six months, providing a bridge back into work for some beneficiaries.
Officials stated that the changes would take effect after publication in the Official State Bulletin. As of June 1, 2014, these modifications apply to new beneficiaries from that date. The bulletin also notes that current subsidy recipients will continue to follow the pre-existing regulations until their current entitlement expires.
In the announcements about the unemployment changes, the government indicated no adjustment to benefits for people aged over 52, with amounts remaining at 480 euros, or 80% of IPREM. However, a later reading of the BOE reveals a change in the retirement contribution base for those turning 52, which had not been reported initially.
At present, the contribution base for unemployed individuals is set at 125% of the minimum base, but new entrants turning 52 will see a gradual reduction, down to 105%. This reduction applies only to those who begin receiving the benefit on or after June 1, 2024. The managing body will therefore use the following contribution bases for retirement calculations:
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During 2024, the contribution base will be 120% of the General Social Security Regime’s minimum base, which has historically been in force.
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During 2025, the contribution base will be 115% of the minimum base of the General Social Security Regime in force.
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During 2026, the contribution base will be 110% of the minimum base of the General Social Security Regime in force.
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During 2027, the contribution base will be 105% of the minimum base of the General Social Security Regime in force.
Those over 52 must collect their entitlement and continue to work
Another notable change in the new regulation is that the collection of unemployment benefits can be made compatible with part-time or full-time employment. This means that recipients who re-enter the labor market will see the subsidy serve as a complement to employment support rather than a standalone benefit.
There is also a provision that allows the unemployment support supplement to be determined according to a schedule that takes into account the time of day and the quarter in which employment begins, as explained in the BOE. The maximum period for charging this additional allowance is six months (180 days).
Overall, the reform aims to provide greater flexibility for unemployed workers, offering a staged subsidy structure, expanded eligibility, and a linked contribution framework that adjusts over time. The changes underscore a broader effort to align social protection with evolving labor market realities and to encourage re-entry into work where possible.
Sources: Official State Bulletin (BOE) and related government announcements. Attribution: government publications and regulatory texts.