Spain raises unemployment benefit to 570 euros per month

The Spanish government will also move to prohibit companies from suddenly dismissing a worker who is recognised as having a disability

Lucía Palacios

Madrid

Tuesday, 21 May 2024, 16:03

The Spanish government has once again approved, for the second time, the reform of the unemployment benefit, which raises the amount to 570 euros per month.

The measures announced this Tuesday 21 May will extend the groups that can benefit from the financial aid and allow it to be combined with full-time employment.

The two major new features of the law are that it eliminates the cut in retirement contributions for the over 52s - which led to its collapse in congress due to the vote against by UN Podemos - and that it also offers the possibility of continuing to receive contributory unemployment benefit, not just welfare benefits, when taking up full-time work for a maximum period of 180 days.

However, for this, the beneficiary must meet two minimum conditions: they must have been unemployed for at least twelve months and receive a salary of no more than 1,350 euros per month, the equivalent of 225% of the Iprem (an indicator used as a reference for certain grants and public aid). Because the government is still finalising the last details with the trade unions, despite having already signed the agreement with them, and with the parliamentary groups, as it wants to make sure this time it will receive the approval of congress so that it can receive the fourth tranche of European funds, 10 billion euros, without any kind of penalty.

On the other hand, if the unemployed person decides to keep this financial assistance for six months while starting a job, these six months will be subtracted from future benefits. The amount received will vary between the equivalent of 80% of the Iprem (480 euros per month) and 15% (150 euros), depending on how long the unemployed person has been unemployed and how long they have been working.

In addition, the new unemployment benefits will be increased by 90 euros per month for the first six months, when 95% of the Iprem will be paid instead of 80% (570 euros according to the current reference rate). The following six months it will be 90% of the Iprem (540 euros per month) and after one year it will be 80% (480 euros). However, the over 52s, almost half of the group, will not benefit from this increase in the amount, and will have to make do with the current 480 euros, although they can keep this aid unlimitedly until they retire and the system will continue to pay contributions for them at 125% of the minimum base.

Many more beneficiaries

The new groups that will now be able to access the subsidy are women victims of gender or sexual violence from the age of 16, migrants returning home, people under the age of 45 without family responsibilities, temporary agricultural workers from all over Spain and Moroccans who travel daily to work in Ceuta and Melilla.

Another improvement is that the cuts for those who have worked part-time are eliminated, so they will receive the full amount. In addition, people with less than 12 months of contributions will be able to receive the benefit, a measure that will mainly benefit young people; the one-month waiting period for receiving it will be eliminated and the administrative procedures for accessing it will be simplified and sped up.

But it will not be the only labour law approved this Tuesday. The government will once again amend the Workers' Statute to prohibit sudden dismissal in the event of severe disability or permanent incapacity. In other words, it will prohibit companies from automatically dismissing a worker who is recognised as having a disability and will give the affected worker the right to ask companies to adapt their job to their new situation.

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