Unemployment benefits in Spain are contributory and non-contributory. 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

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Introduction

The current unemployment insurance system was established by act of

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on 23 of July 1961 in the form of the Seguro Nacional de Desempleo (National Unemployment Insurance). 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. The unemployment rate of Spain is the third highest among OECD countries, 15.1% of the total labor force was unemployed in the third quarter of 2018. The youth unemployment in Spain in the third quarter of 2017 was 37.44%. Spain's population has less women than men working within the working sector.

Contributory benefits

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

Content of Unemployment Protection

Unemployment insurance benefits include financial contributions to the unemployed person based on whether the individual is totally or partially unemployed. It also provides financial contributions from the Social Security in addition to the unemployment insurance. It will also provide training, counseling, and vocational training to help individuals gain employment.

Requirements

In order to receive a contributory benefit a person must be legally unemployed after making unemployment contributions at least 360 days in the last 6 years and be registered with the employment authorities as available for work

Benefit Amount and duration

The unemployment benefit is paid for a minimum of 4 months and maximum of 24 months, based on the period that the unemployed person has contributed. The benefit amount is based on the most recent 180 days

salary A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. F ...

with both a minimum and a maximum amount. The

average In ordinary language, an average is a single number taken as representative of a list of numbers, usually the sum of the numbers divided by how many numbers are in the list (the arithmetic mean). For example, the average of the numbers 2, 3, 4, 7 ...

daily salary of the last 180 days is multiplied by 30 to arrive at a monthly benefit base. The monthly benefit amount is 70% of the monthly base for the first six months of unemployment and 50% of the monthly base for additional months, unless limited by the minimum or maximum amounts allowed. The base amount is supplemented if the unemployed person has dependent children. A dependent child lives with the recipient and is either under age 26 or 26 or older with a

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of 33% or more. A child may not be a dependent of multiple unemployment recipients.

Minimum and Maximum Benefit Amounts

The monthly benefit amount limits are calculated using the monthly Public Income Index or :es:Indicador Público de Renta de Efectos Múltiples (IPREM). Unemployment from part-time employment is modified based on the number of hours worked.

Withheld Amount

Personal income tax (see

Taxation in Spain Taxes in Spain are levied by national (central), regional and local governments. Tax revenue in Spain stood at 36.3% of GDP in 2013. A wide range of taxes are levied on different sources, the most important ones being income tax, social security ...

) and Social Security contributions are withheld from the monthly benefit amount. While receiving unemployment benefit, a worker must remain registered with Social Security. The amount of Social Security withholding from the unemployment benefit will be based on the average withholding for "common contingencies" (4.7% of

) from the previous six months of employment.

Non-contributory benefits

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

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

Unemployment Benefits and the Disabled

There are many people with disabilities in Spain. According to the National Statistics survey, 87.1% of disabled people are able to work but have to overcome job specific barriers in order to be employed. Barriers could include training barriers and education barriers. In 1982, Spain passed a law to help individuals with disabilities to find jobs. The law is known as the Law for Disabled People's Social Integration. The law only applies to business owners with more than 50 workers. The law requires that 2% of hired employees and workers to be disabled. It helped integrate the unemployed back into the population.

International Unemployment Benefits in Spain

If an individual in the European Union is receiving unemployment benefits in another country in Europe they are also eligible to receive unemployment benefits in Spain. The circumstances required are that it is a maximum of three months. The maximum limit one can receive for these benefits from another country is 175% of the IPREM. The number of children that beneficiary has will also contribute to the amount they receive.

References

External links

Spanish Public Employment service homepageSpanish Public information Employment service homepage
{{Europe topic, Unemployment benefits in Labor in Spain Public services of Spain Welfare in Spain

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Social security in Spain