In the late months of 2023, a decree aimed at reforming unemployment benefits was approved by the Council of Ministers. This reform promised notable shifts in how unemployment support is viewed and accessed by Spanish workers. Yet tensions between the ruling parties, PSOE and Sumar, exposed the fragility of reaching a durable agreement.
The approval and subsequent debate over the unemployment benefit reform have dominated discussions for months. Podemos’s decision to block the measure triggered wide repercussions, but readers should understand the sequence of events, the core elements of the reform, and how these changes affect workers and their families in Spain.
Unemployment benefits reform decree: changes you need to know
- Increase in subsidy amount: It was anticipated that unemployed individuals could receive up to 570 euros per month, with a gradual reduction that would not dip below 480 euros. The exact monthly amount depended on the duration of the unemployment spell. During the first six months, the subsidy would be 570 euros per month, equating to 95 percent of the annual income indicator IPREM. The figure would then drop to 540 euros (90 percent of IPREM) in the following six months. For the remainder of the aid period, the subsidy would stay at 480 euros per month (80 percent of IPREM).
- Combination possibility with a job: Under the reform, beneficiaries could receive benefits even while employed, though the amount would be reduced to reflect earnings from work.
- Maintenance of subsidy for people over 52: Those in this age group would continue to receive 480 euros annually, regardless of the number of months unemployed.
- Elimination of waiting time: There would be no additional waiting month after the contribution period ends, enabling faster access to aid.
- Changes to family responsibilities: The family unit’s total income would be divided among its members and would not exceed 75 percent of the national minimum wage (SMI).
- Inclusion of previously excluded age groups: Individuals under 45 who have exhausted 360 days of contribution and have no family responsibilities could qualify for support. Those with less than six months of premium payment, regardless of family status, would also be eligible. Temporary agricultural workers would benefit as well.
- Gradual reduction of contributions: The reform outlines a stepwise approach in Social Security contributions, with a plan to align the base in force to 100 percent by 2028.
Despite these measures, Podemos overturned the subsidy reform decision, creating uncertainty for those expecting improvements in unemployment support. Debates continue, and the outcome remains to be seen as discussions move forward and potential agreements are pursued in the future.
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Overall, the unemployment benefit reform decree signals substantial changes to how benefits are delivered in Spain. The reform aimed to recalibrate support, addressing both duration and income considerations. While the role of Podemos has created disruption, the discussion persists on what the future holds, including potential transitions toward a subsidy framework with modified terms and eligibility.
[Fuente: Gobierno de España]