Everything you need to know about the unemployment benefit reform: amounts, beneficiaries and duration

After weeks of negotiation between the Ministries of Labor and Economy, both ministries have reached an agreement for the reform of unemployment benefits. The Council of Ministers of December 19, 2023 has approved Royal Decree-Law 7/2023, of December 19. In addition, it is already known when this reform will come into force, it will be from June 1, 2024, as stated in the rule published this Wednesday in the Official State Gazette (BOE), so the rights recognized before this date They remain with the previous regulations until their extinction.

These changes are intended to encourage the reintegration of the unemployed into the labor market, a measure to promote the goal of full employment set by the Government for this legislature. At the end of November, some of the measures contemplated by this reform were already known. And the thing known as the unemployment assistance subsidy of 480 euros received by those who have lost unemployment benefits will be expanded to benefit those under 45 years of age, who do not have family responsibilities and who have finished receiving unemployment benefits.

In addition, it also includes different points that aim to speed up the procedures, such as reducing the time to receive this aid, a change in the review period and making it compatible with a job.

Now, with the approval of the unemployment benefit reform approved by the Council of Ministers, the rest of the changes that will occur are already known.

Amounts

The amount for unemployment will be increased in the first six months from the current 480 euros to 570 euros. From those six months and during the same period of time, the amount will be slightly reduced, up to 540 euros. Once a year has passed, they will be charged 480 euros again. However, as these incomes will continue to be linked to the IPREM, which is currently 80%, it is expected that following the change in this index next year, these amounts will be modified.

However, those over 52 years of age will not be able to enjoy the increase in the amount up to 570 euros and, in addition, the contribution that the SEPE provides for them for their future retirement will be reduced. A progressive decrease is expected and this percentage will go from 125% of the current minimum base to 100% in 2028.

Duration

The termination of the benefit is maintained at a maximum of 30 months, depending on age, family circumstances and the duration of the exhausted benefit. What the agreement does include, and it is a fact that was already known, is the possibility of making it compatible for 180 days with the receipt of a salary to “facilitate the transition to employment.”

How many people will benefit from this reform

It is estimated that with this reform coverage will reach one million people, taking into account that it currently reaches 800,000. Well, these benefits are extended to those under 45 years of age without family responsibilities and those over 52 years of age with dependents, even if the beneficiary's income, as until now, exceeds the threshold, which is set at 75% of the interprofessional minimum wage. . Furthermore, as announced by the Labor Ministry, those who prove contributions for periods of less than 6 months and lack family responsibilities will be eligible for the subsidy for insufficient contributions.

On the other hand, potential farmers residing outside Andalusia and Extremadura will also be incorporated, as well as cross-border workers who go to work in Ceuta and Melilla every day.