The topic of unemployment benefits and subsidies has been a hot button for many. After the Podemos vote in parliament, Royal Decree 7/2023 on unemployment support was introduced amid rising uncertainty. On December 19, the Council of Ministers approved the reform, a move not backed by the left-wing party, which argued it would imply reductions for workers. One claim centered on relief for people over 52 years old, sparking widespread discussion about how much support would be available.
When reform plans aren’t approved, people often wonder what the reform would entail. It sparked questions about unemployment benefits for those over 52 years of age.
Subsidy for people over 52: how much is charged
This aspect drew sharp attention during the reform proposed by Labor Minister Yolanda Díaz. The payment level rose as the percentage of remaining unemployment benefits, tied to the IPREM (Public Income Indicator of Multiple Effects), increased. Yet, the situation for citizens over 52 who were receiving 80% of IPREM remained specific, currently equating to 480 euros per month.
IPREM is updated annually, so the exact amount depends on the 2024 General Government Budgets. If the public indicator changes, the subsidy could rise. Here is a detailed explanation.
For these reasons, the amount for beneficiaries over 52 did not change with the recent repeal of the rule.
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It does not change because the period during which assistance can be received remains the same under the new decree. The subsidy for citizens over 52 can be collected continuously until a job is found or retirement age is reached.
Subsidy for over 52s: changes to accessing aid
The reform also adjusted the conditions for accessing subsidies. Previously, only income not exceeding 75% of the SMI (Minimum Interprofessional Wage) was considered. The new rules broaden eligibility to include those with family responsibilities and households whose total income does not exceed the limit, allowing more people to qualify for support.
Subsidy for people over 52: changes in contribution bases
Additionally, the reform proposed a gradual reduction of the retirement contribution base for new beneficiaries, starting June 1, 2024. The base would fall from 125% to 105% of the General Social Security Regime minimum base by 2027. The reduction progressed as follows:
- During 2024, the contribution base would be 120% of the General Social Security minimum base that has always applied.
- During 2025, it would be 115% of the same minimum base.
- During 2026, it would be 110% of the minimum base.
- During 2027, it would be 105% of the minimum base.
Subsidy for over 52s: changes to accessing aid
Finally, the reform ensures that beneficiaries over the age of 52 can qualify for employment while receiving the subsidy for up to 180 days, albeit with a lower economic contribution than the full subsidy. This provision enables beneficiaries to accept work, even part-time, without losing their right to subsidies.