Podemos studies voting against the Government decree for the reform of unemployment benefits

Barely a month after Podemos's decision to abandon the parliamentary group of Sumar, a PSOE partner in the coalition government, Ione Belarra's party poses the first difficulties to the Executive. Sources from the party affirm that they are studying voting against the unemployment benefit reform approved in the Council of Ministers on December 19. They assure that it represents a cut in retirement pensions for those over 52 years of age. The Ministry of Labor headed by Yolanda Díaz, leader of Sumar, denies this. That royal decree-law, published on December 20 in the State official newsletter (BOE), will be submitted to Congress for validation on Wednesday, along with the so-called anti-crisis decree, to which Pedro Sánchez's Cabinet gave the green light on December 27.

The group led by Ione Belarra considers it “very serious” that the Executive reduces the contribution base of these subsidy recipients, which translates, they say, into “a sharp cut in their future retirement pensions.” They refer to the third transitional provision of the decree-law that establishes a transitional contribution regime for the subsidy for those over 52 years of age and give an example: “For a 52-year-old worker who had received the average Spanish salary during his professional career, “If he has been contributing for 22 years and receives the subsidy until he retires, the Government's decision implies reducing his pension by 162 euros per month, that is, 2,268 euros per year.”

From the Ministry of Labor, promoter of the decree that reforms the unemployment benefit – after a tough negotiation with the Economy -, they deny that this is the case. The subsidy will be 570 euros in the first six months for most benefits, 540 in the following six and from then on it would remain at 480. A good part of the unemployment benefits have a maximum duration of six months, extendable depending on the the circumstances. The most frequent (44.6% of recipients), that of those over 52 years of age, has no time limits. For them, the amount remains at 480 euros for the entire period, according to the Department headed by Díaz.

The provision that Podemos criticizes establishes that, during the receipt of the subsidy for workers over 52 years of age, as long as the right has been generated as of 2024, the contribution is 120% of the minimum base in 2024 —compared to 125 previous %—, to 115% in 2025 and thus falling to 105% in 2027.

Sources from Díaz's ministry deny that the reform is “a cut.” They explain the 125% contribution was a “patch to compensate” the “very low” interprofessional minimum wage (SMI) prior to 2018, when the PP governed. “Not only has the 25% additional contribution that the 52-year-old unemployment benefit had been replaced, but the minimum wage is 50% higher. Before, there were ridiculous scenarios in which there were people who contributed more by collecting the subsidy than by working. Now a sufficient contribution is guaranteed thanks to the fact that there is finally a decent minimum wage,” they say.

Podemos has already transmitted to the Executive its rejection of the subsidy reform that appears in the third transitional provision of the decree, according to party sources. There are just three days left to negotiate.

In a statement, UGT and Workers' Commissions regretted on December 20 that “a negotiation with all its consequences regarding unemployment benefits” had not taken place. Both unions consider that “the reform represents progress in terms of increasing the amounts or expanding access to the subsidy to new groups,” but they are dissatisfied with “the gradual reduction of the subsidy contribution base for those over 52 years of age.” , which is currently 125% of the minimum base in force each year.”

_