Spain’s allowance for people aged 52 and over stands as a crucial support for the unemployed who have exhausted their contributions. This aid is among the non-contributory benefits of the social security system and is designed to help those who lost work due to age and who face challenges re-entering the labor market.
Today, roughly 900,000 individuals benefit from this aid, underscoring its significance within the country’s social protection framework.
Recently, the government approved notable reforms to unemployment benefits. The most important changes include an increase in subsidy amounts and the introduction of a tiered payment system. Initially, the monthly subsidy stood at 480 euros; the reform established a schedule that begins at 570 euros and then gradually returns to the original 480 euros. The payment structure is as follows:
- From 0 to 6 months: 570 euros or 95% of IPREM
- From 6 to 12 months: 540 euros or 90% of IPREM
- From 12 months onward: 480 euros or 80% of IPREM
This measure is expected to extend coverage to about 400,000 new potential beneficiaries, including temporary agricultural workers and individuals under 45 years of age.
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In addition, unemployed individuals were given the option to combine aid with salary for up to six months (180 days). This provision aims to ease reintegration into the labor market by allowing beneficiaries to receive both subsidies and wages for a limited period.
To ensure proper implementation of the reform, the government introduced tighter controls. Quarterly checks verify that beneficiaries still meet the required conditions, and the obligation to file an annual income tax return is applied, similar to requirements for the Minimum Living Income (IMV). These checks are meant to prevent misuse and ensure that help goes to those who truly need it.
Prices are falling
Another key aspect of the government’s changes to unemployment benefits is a reduction in the contribution base for those starting benefits from June 1, 2024. The minimum contribution base has been adjusted from its previous level, with the following trajectory:
- For 2024, the contribution base is set at 120% of the minimum base of the General Social Security Regime
- For 2025, the contribution base will be 115%
- For 2026, the contribution base will be 110%
- For 2027, the contribution base will be 105%
Will the amount of support increase?
Despite these adjustments, the reform did not raise the subsidy amount for people over 52. Beneficiaries continue to receive support calculated at 80% of IPREM, which equates to 600 euros per month for the current year, and the actual subsidy remains 480 euros per month. This led to some disappointment among those who expected a higher IPREM percentage for this group. Yet there are signs of potential upside. For instance, changes surfaced on administrative channels showing that subsidies can rise if IPREM increases. The link to IPREM movements is direct: when the Minimum Interprofessional Wage (SMI) goes up, IPREM tends to rise as well, potentially boosting the subsidy amount in the coming year.
At this time, the exact IPREM for 2024 remains uncertain. There is a possibility of a rise, which would lead to a higher subsidy, but it has not been officially confirmed. Observers note that IPREM tends to move in tandem with SMI changes, so the future outlook remains contingent on broader wage trends and policy decisions.
The overall aim of these reforms is to balance financial support with incentives to return to work, ensuring that help reaches those most in need while encouraging a productive labor market participation. The evolving framework continues to be watched by workers, policymakers, and social protection observers alike, as it shapes living standards and employment prospects for a large segment of the population.