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Date Published: 18/12/2024

Unemployment benefit reform in Spain: A game-changer for low-income workers

This new compatibility regime between employment and unemployment benefits will apply from April 2025 in Spain

The Spanish Government, in collaboration with the unions, has introduced a groundbreaking reform to the unemployment benefit system, aimed at supporting workers who are struggling to re-enter the labour market while providing financial stability.

From April 1, 2025, workers earning less than 1,350 euros per month will be able to collect unemployment benefits and their salary at the same time.

This provision, known as the employment support supplement, is a key part of the reform and is designed to “protect the long-term unemployed” by providing additional relief, according to the Ministry of Labour.

To qualify for this benefit, workers must meet certain criteria:

The employee’s salary must not exceed 225% of the IPREM (currently 1,350 euros per month).
The approved unemployment benefit must have been granted for a period of more than 12 months.
At least nine months must have passed since the start of receiving the benefit.

The employment support supplement will allow workers to combine their contributory unemployment benefit with an employed job, whether full-time or part-time. The benefit can be received for a maximum of 180 days (6 months), with the following payment structure:

First 6 months: 95% of IPREM (570 euros, based on the current IPREM).
Next 6 months: 90% of IPREM (540 euros).
Remaining period: 80% of IPREM (480 euros).

Starting from 2026, an additional limit of 375% of the IPREM will be implemented.

While much of the unemployment benefit reform has already come into force, the compatibility regime between employment and unemployment benefits will apply from April 1 next year.

This reform will provide employees with a crucial financial buffer, helping them maintain their standard of living while they are looking for work. Furthermore, by allowing workers to collect benefits while employed, the government aims to incentivise re-entry into the labour market, ensuring that workers do not fall into a cycle of prolonged unemployment.

In other news: New contribution rates for self-employed workers in Spain in 2025: Who benefits, and who loses out?

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