Unemployment benefits in Spain

Unemployment benefits in Spain are contributory and non-contributory.^[1] They are part of social security system in Spain and are managed by the State Public Employment Service (SEPE). Employers and employees contribute to the unemployment contingency fund and if an unemployed person fulfills certain criteria they can claim an allowance which is based on the time they have contributed and their average wage. A non-contributory benefit is also available to those who no longer receive a contributory benefit dependent on a maximum level of income.

History

The current unemployment insurance system was established by act of parliament on 23 of July 1961 in the form of the Seguro Nacional de Desempleo (National Unemployment Insurance).^[2] It followed previous systems established starting in the 1930s. A reform in 2010 resulted in the inclusion of the self-employed and domestic workers within the scheme.^[3]

Contributory benefits

The main allowance paid to the unemployed is a contributory allowance known as 'prestación por desempleo'.

Requirements

In order to receive a contributory benefit an employee must have contributed at least 360 days in the last 6 years, be registered with the employment authorities as available for work^[4]

Benefit Amount and duration

As a rule the benefit is paid for 1/3 of the period that the unemployed person has contributed. As a minimum the benefit is paid for 4 months and a maximum of 24 months is permitted.^[5] The benefit amount is calculated on the basis of the last 180 days salary with both a minimum and a maximum amount applicable. The base amount is supplemented according to the specific family situation of the unemployed person with a supplement for those with children under 26 or handicapped- The unemployed receive 70% of their reference salary (subject to the ceiling)during the initial 6 months falling to 50% thereafter.^[6]

Minimum and maximum

• Person with no children: 497,01 / 1087,21 euro
• Person with 1 child:664,75/1242,52 euro
• Person with 2 or more children:664,75/1397,81 euros

Income tax and contributions are deducted from the contributions.

Non-contributory benefits

The 'Subsidio de desempleo' is a non-contributory benefit targeted to those who no-longer qualify for the contributory benefits due to duration of unemployment or lack of contributions and is means-dependant.

Finance

Both the contributory and non-contributory benefits are financed through a 1.55% contribution by employees and 5,5% by employers on employees salaries up to 3262 euros per month^[7]

References

External links

• Spanish Public Employment service homepage