The unemployment benefit is a financial support designed for people who lost their job involuntarily and have contributed to the social security system for a minimum period. It is an earned right based on the worker’s career and is commonly known as unemployment or the dole.
To qualify for the contributory unemployment benefit, the applicant must have accumulated at least 360 days of contributions in the last six years before the unemployment event or before an obligation to refrain from work ended with compensation. In addition, the person must be legally unemployed, be enrolled in the social security system, and not have passed the minimum age for retirement to be eligible for the benefit.
The amount of the benefit is calculated using the average of the worker’s contribution base from the most recent 180 days of work. During the first 180 days, the payment equals 70 percent of that base; from day 181 onward, it drops to 50 percent. There are maximum and minimum limits that depend on factors such as dependent children and other personal circumstances.
The duration of the benefit depends on the total contribution period, ranging from a minimum of 4 months to a maximum of 24 months. Accepting this benefit also requires a commitment to participate in job search activities, training courses, or other employment activities promoted by the employment services.
Subsidy for unemployment
The unemployment subsidy is a form of aid aimed at individuals who have exhausted the contributory benefit or do not meet its eligibility requirements, and who remain unemployed and in need of financial support.
To access the unemployment subsidy, several requirements must be met, such as being legally unemployed, sometimes having exhausted the contributory benefit, and not having income above 75 percent of the minimum interprofessional wage (excluding the proportional part of extra pay). There are also different subsidies tailored to specific groups, such as people over 45 or 52, returning immigrants, or those released from prison, among others.
The subsidy amount is set at 80 percent of the IPREM (Indicador Público de Renta de Efectos Multiples). This amount is fixed and does not depend on prior contributions by the worker. As of today, the IPREM stands at 600 euros per month, making the subsidy about 480 euros monthly.
Differences between the contributory benefit and the unemployment subsidy
The main differences lie in eligibility requirements, duration, and how the amount is calculated. The contributory benefit is for those who have contributed previously, with duration and amount tied to those contributions. The subsidy targets individuals in financial need after exhausting the contributory benefit or not meeting its requirements and offers a fixed amount based on the IPREM.
The contributory benefit begins with a minimum of 360 days of contributions and, during its payment, the unemployed also contribute to retirement funding or healthcare coverage. The subsidy does not involve such contributions.
The subsidy duration depends on the number of months contributed and the family responsibilities of the applicant.
- With family responsibilities: the subsidy lasts three, four, or five months, depending on the number of months contributed. It can extend up to 21 months if six months or more have been contributed.
- Without family responsibilities: the subsidy lasts six months if six months or more have been contributed, without reaching 360 days.
Final notes: these guidelines may vary with changes in regulations and public policies. It is advised to confirm current requirements and the amounts with the national employment service, as conditions can be updated over time. (Source: labor authorities and social security, official guides).