Labor proposes increasing aid to the unemployed up to 660 euros during the first six months and closes the reform

The Ministry of Labor wants the subsidies for the unemployed to increase up to 660 euros per month during the first six months of validity and to extend the beneficiaries also to those under 45 years of age and to temporary agricultural workers from outside Extremadura and Andalusia.. A measure that would benefit some 400,000 more unemployed people, who have already exhausted their benefits but are currently left outside the assistance system.

This was detailed this Thursday by sources from the department headed by Yolanda Díaz, who have accused the Ministry of Economy of trying to cut subsidies to the unemployed, both the amounts they receive and the period in which they have the right to enjoy the aid.. The department led by Díaz claims that the responsibility for this reform is its own, not Economy's, and considers that the text is ready and the debate is closed.. However, other knowledgeable sources indicate that the negotiation is still ongoing and there is no closed proposal yet.

The Ministry of Labor is finalizing the reform of the unemployment benefit system, aid to which unemployed people who have already exhausted their contributory benefit can apply as long as they meet a series of income and age requirements.. The Government committed to the European Union to leave the text closed in 2022, but the strong discrepancies between Labor and Economy, which is also giving its opinion on the approach of the regulation, have delayed the process.

The department led by Díaz is committed to increasing the amount of aid during the first twelve months of benefit and maintaining the current level during the remaining 18 up to a limit of 30 months.. In this way, the unemployed who enjoy this aid would receive 660 euros per month during the first six months of subsidy (110% of the Iprem); The next semester they would earn 540 euros per month (90% of the Iprem) and the last 18 months they would receive 480 euros per month (80% of the Iprem, the current amount). Furthermore, these amounts would rise if the Iprem is revalued in 2024, something that Labor takes for granted will happen.

From the Ministry of Labor they point out that Calviño's approach is to cut the maximum period in which this benefit can be enjoyed from the current 30 months to 12. According to the aforementioned sources, the Economy proposal would involve raising the subsidy up to 600 euros during the first three months and then gradually reducing it.. The second quarter would fall to 480 euros, the third to 390 and the last four months it would remain at 300.

In this way, Díaz's proposal would give the right to collect a benefit that would amount, on average, to 528 euros per month for a maximum of 30 if it is completely exhausted.. That is, 10% more than with the current system. On the other hand, the approach that Economy is pursuing, according to Labor, would involve cutting up to 442.5 euros per month on average for only 12 months (8% less than until now).

Hard clash with Calviño

The amount and duration of the subsidies have become a huge focus of dissent between the two economic souls of the Government. To the point that, from Trabajo, they accuse Calviño of designing a neoliberal reform, based on suspicion, that goes against the minimum living conditions and that many right-wing political forces would share.

The aforementioned sources even go so far as to accuse the Economy of trying to eliminate the unemployed from the statistics by reducing the duration of the subsidies.. With the current system, unemployed people who have exhausted their contributory benefit must be registered with the SEPE in order to receive aid.. Following this reasoning, if the maximum period is reduced from 30 months to 12, many registered unemployed would unsubscribe by losing the right to aid, which would facilitate an artificial decrease in unemployment.

In this sense, other knowledgeable sources reject these statements and point out that the Economy's focus is to go from subsidizing to supporting employment.. They also maintain that the current system does not help enough, condemns the unemployed to structural unemployment and is far from the standards of other European countries, where subsidies are decreasing. The Economy approach seeks to introduce incentives to reincorporate these unemployed into the labor market and to opt for the minimum vital income to cover part of the needs that now depend on these subsidies.

Agreement on the rest

In the rest of the proposals, Economy and Labor agree in general terms. Díaz's plan also aims to ensure that the unemployed who receive the subsidy can make it compatible with a job during the first 45 days.. Similarly, the scope of the measure is extended to those under 45 without family responsibilities, who until now were excluded, and also to temporary agricultural workers beyond Andalusia and Extremadura.. Labor estimates that around 400,000 more unemployed people, 150,000 people under 45 years of age and around 250,000 potential agricultural workers would join the system.

The text used by Díaz eliminates the month of waiting between when the contributory benefit is exhausted and the subsidy can begin to be received, and proposes that the review of whether the income thresholds are met be done every quarter and not every month as until now.. In this regard, Labor proposes that to define eligibility, individual or family income be analyzed, but that the criterion that is most favorable for the unemployed be applied.