The Ministry of Labor has continued its policy for 52 years, including a longstanding eligibility rule that residents must reach a certain age to begin collecting unemployment subsidies. At present, the subsidy targets individuals who are unemployed and have exhausted their prior contribution credits. The monthly grant amounts to 480 euros and is disbursed through Sepe. The government is currently debating how to reshape its subsidies, with an emphasis on broadening coverage in the face of unemployment. The department led by Yolanda Díaz is examining ways to expand access to aid subsidies.
According to reports from Cadena Ser, Labour’s reform proposal would allow access for approximately 152,000 additional people. The outlet noted that many of these potential beneficiaries do not have dependent family members. Today, roughly 900,000 people receive some form of unemployment benefit.
The push to broaden eligibility is a priority for Yolanda Díaz’s team; however, it collides with the stance taken by the Economy Ministry under Nadia Calviño. The economic leadership seeks to rebalance the aid system by aligning subsidies with employment outcomes, so recipients can receive both subsidies and salaries while gradually reducing the subsidy amounts over time. A key element under consideration is tightening controls on unemployed individuals who reject suitable job offers, to ensure continued eligibility for subsidies.
Media inquiries about the number of people stripped of subsidies each year due to turning down suitable offers were not answered by the Ministry of Labor.
Spain currently has about 2.7 million unemployed, a figure that marks the lowest level in the last 15 years but remains the highest in the European Union. Of these, one-third do not receive any form of aid, another third receives a contribution-based allowance whose amount reflects the applicant’s prior earnings and contribution period, and the final third receives welfare assistance not tied to past employment, which Sepe recognizes for groups deemed particularly vulnerable.
System simplification
The administration has pledged to simplify the subsidy landscape, reduce the number of competing programs, and ease access for those meeting the legal requirements. The ultimate agreement between the Economy and Labor ministries will hinge on whether coverage can be expanded, whether the benefit amounts can be improved, and whether the conditions can be reworked to better support people entering first-time jobs, among other considerations.
Unemployment benefit reform has been on the agenda since the era of the Popular Party. Fatima Banez served as Minister of Labor in earlier years. More recently, the Pedro Sánchez government promised Brussels to reform this system. Yet after more than a year of internal work, the coalition failed to reach a final agreement, and a period of electoral campaigning left the issue dormant.
To accelerate the use of European funds, the government plans to push the reform forward as quickly as possible. This haste has drawn fire from unions, which warned in a joint statement that such a major reform—potentially affecting hundreds of thousands of people—should undergo extensive social dialogue. According to sources from the Generalitat, regional governments, which oversee active employment policies, expressed concerns about the lack of early consultation with them before moving ahead.