Recent government steps affecting unemployment benefits have drawn widespread attention. A key change increases the monthly subsidy for the first portion of benefits: the initial six months will receive 570 euros, which equals 95% of IPREM; months six to twelve will be 540 euros (70% of IPREM); and after twelve months the amount will be 480 euros (80% of IPREM).
Additionally, the scope of the support is widening to include temporary agricultural workers and individuals aged over 45, broadening the pool to about 400,000 new potential beneficiaries. The new subsidy also lets unemployed individuals combine benefit receipt with earnings for a maximum of six months.
The government indicated that these measures would take effect once published in the BOE. As of June 1, 2014, the changes apply to new beneficiaries from that date onward. The bulletin notes that current subsidy recipients will remain under the regulations that existed before this royal decree until their present entitlement ends.
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Subsidy for people over 52: reduction in pension contributions
The announcement about the unemployment benefit reforms stated that the benefits for those aged over 52 will remain unchanged at 480 euros, or 80% of IPREM. However, the BOE later clarified that the retirement contribution base will be reduced for those turning 52 years old.
Currently, the contribution base for unemployed individuals sits at 125% of the minimum base (the minimum wage). Under the new rules, those who begin receiving this benefit on or after June 1, 2024 will see this rate gradually decrease to 105%. The managing body will adjust the retirement support using the following bases:
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During 2024, the contribution base will be set at 120% of the General Social Security minimum contribution base in force.
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During 2025, the base will be 115% of that minimum contribution base.
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During 2026, the base will be 110% of the same base.
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During 2027, the base will be 105% of the minimum contribution base.
Recipients aged 52 and older must still claim and may continue working
A further change in the regulation allows unemployment benefits to be drawn while working. Those receiving subsidies who re-enter the labor market, either full-time or part-time, will see the subsidy act as a complement to employment support.
Additionally, the BOE explains that the level of this employment support supplement depends on a schedule tied to the time of day and the quarter in which the beneficiary is employed:
The maximum period for charging this additional supplement is six months (180 days).