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Date Published: 28/10/2024

Spain slashes two unemployment subsidies from November 1

Spain plans to replace family aid and the over-45s subsidy next week

As of November 1, the Spanish government is introducing significant changes to the country's unemployment benefits system. The State Public Employment Service (SEPE) will be eliminating two of its most well-known benefits, the family assistance and the subsidy for people over 45, and replacing them with a new scheme: the ‘subsidy for exhaustion of contributory benefits’.

According to the Spanish government, it is introducing these changes to expand rights, improve access to unemployment aid and increase the amount of benefits.

The new subsidy is designed to be more flexible and adaptable to the needs of the unemployed, allowing them to combine benefits with employment without having to choose between working or collecting unemployment benefits.

What’s changing?

Until now, workers who had exhausted their contributory unemployment benefit could opt for three types of subsidies: family assistance, the subsidy for those over 52 years of age and the subsidy for those over 45 years of age. Although the amounts of these subsidies were the same, their duration varied depending on the length of time benefits were claimed for, the contributory benefit, the age of the applicant and whether they had dependants.

Crucially, the old system completely excluded anyone under the age of 45 who didn’t have family responsibilities.

In contrast, the new subsidy will have a variable amount and duration, depending on the age of the applicant and the unemployment benefits already used up.

For those under 45 years of age, it will be necessary to have exhausted at least 360 days of unemployment benefits to receive a six-month subsidy. Those over 45 years of age without family dependents will be able to access the same benefit if they have consumed at least 120 days of benefits.

On the other hand, unemployed people with family responsibilities, regardless of their age, will be able to access a subsidy of up to 24 months if they have claimed at least 120 days of benefits. In cases where 180 days or more have been consumed, the duration of the subsidy may be extended up to 30 months.

New amounts and elimination of partial subsidies

One of the main changes introduced in this reform is the change in the amounts. Until now, 80% of the IPREM (Public Indicator of Multiple Effects Income) was charged, which is currently 480 euros. With the new subsidy, the amount will be variable and during the first six months, 95% of the IPREM will be received (currently 570 euros); during the following six months, it will be 90% (540 euros), and from then on, it will remain at 80% (480 euros) until the subsidy runs out.

In addition, partial benefits will be eliminated. Until now, when a part-time worker accessed unemployment benefits, they received them in proportion to the hours worked. For example, if the last employment contract was part-time, the benefit would be 50% of the standard amount (which is 80% of the Public Indicator of Multiple Effects Income or IPREM), so they would receive 240 euros per month. Now, with the new rule, this measure will disappear and all beneficiaries will receive the full amount regardless of the type of work day or employment contract.

What about current beneficiaries?

The beneficiaries of these benefits will continue to receive them until they are exhausted. However, the amounts will not increase, and they will be governed by the same rules as before.

In other news: Pensioners in Spain to receive a significant monthly boost in 2025

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