After several days of constant clashes with the Ministry of Economy, Vice President and Minister of Labor Yolanda Diaz put forward for discussion unemployment benefit reform that his department had been preparing for months. And it has made its intention very clear: it will increase the aforementioned benefit, expand it to cover more beneficiaries, it will be compatible with employment, and the bureaucracy that currently makes it difficult to administer and collect will be lightened.

He unemployment benefit This is a benefit that can be received by unemployed people who are not eligible for unemployment or have exhausted it, provided they meet certain requirements. The government promised Brussels to reform it, which was to be implemented by the end of 2022. It can no longer be delayed because the reform is linked to the fourth allocation of European funds, which is why last week, when she resumed her duties as vice-president and minister, Diaz announced that her first measure would be to increase unemployment benefits.

In response, this Monday the Ministry of Economy, to the anger of the Ministry of Sumar, conveyed what this reform should be. Diaz’s supporters believe that Calviño’s ideas contradict the agreement with Brussels – The Recovery Plan is very clear about “expanding” these benefits, and contrary to what is stated in the program agreement between PSOE and Sumar, it is also very clear about improving the benefits mentioned. The philosophy of the Labor Party, its representatives insisted, was that the unemployed do not find work sooner because their benefits are being cut, that persecuting the unemployed does not encourage them to return to work, and that the cost of keeping more people excluded is important socially.

At a meeting with journalists, which Díaz attended in person along with Employment Minister Joaquín Pérez Rey and other members of his cabinet, The ministry has made it clear that it will oppose any cuts. unemployment benefits, such as those offered by Economía. According to the Labor Party, Calviño’s department has put forward proposals that include reducing the subsidy from 30 to 12 months, gradually reducing the benefit as well as in the overall calculation, as well as increasing the access age to 60, as well as tightening controls on these unemployed people. to ensure they stop receiving benefits if they turn down job offers, which Labor says is stigmatizing.

Diaz’s team insists that The reform will be approved by the end of the year. if possible, in agreement with trade union and business organizations. And they left open the possibility of different terms than those Labor had already agreed with the European Commission when Spain sent over its Recovery Plan, which included reforms and investments the country would undertake in exchange for receiving $170 billion.

The following are details of the reform that the Ministry of Labor says it will implement, and this is in line with what is included in both documents: Recovery plan -where it is stated that the reform will be aimed at “expanding” subsidies – as in the PSOE-Sumar agreement – ​​where it is promised to simplify and increase the level of unemployment assistance, “facilitating access, compatibility with work, ensuring its sufficient benefits and strengthening incentives to work “

Increase subsidy amounts

Right now, as stated on the SEPE website, the emergency unemployment benefit is equivalent to 80% of the government’s multiple income indicator (IPREM) in force at all times. This year this amount is now 480 euros. The idea of ​​Saving is to increase the benefit slightly at the beginning and reduce it each month in order to stimulate the search for work. Overall, the initiative entailed savings, since the unemployed person would end up receiving 452 euros per month.

Unemployed people will earn 660 euros in the first six months, compared to the current 480 euros.

But Labor sees this course of action as perverse, recognizing that subsidies are already a very low source of income and that there is no need to put pressure on the unemployed to find work. So their proposal is to increase the benefit – with contributions to the general budget of the state- so that the grant recipient receives 110% of the IPREM for the first six months (today €660), 90% for the next six (€540) and the rest receive 80% (€480) – depending on your circumstances this may be more or less months, up to 30.

Get paid from the first month

When an unemployed person exhausts the subsidy they receive, they can only claim unemployment benefits after a month. This, Yolanda Diaz’s office believes, is due to the idea that it is necessary to create need among the unemployed so that they make an effort when looking for work. To relieve this pressure, the Labor Party promises that the subsidy could pay first time moment.

They also insisted that will reduce bureaucracy around the subsidy to make it easier to apply, and that they would replace the monthly registration obligation (called job application renewal) with a quarterly system that also allows the worker to dedicate that time to seeking employment.

This will be compatible with employment

Today, when a worker receiving a subsidy gets a job, he must stop receiving that income. But what if you get fired or fail your probation? In this case, you will again have to wait a whole month before you can apply for the subsidy again, so the unemployed person may hesitate whether to accept the job offer or not. The Ministry of Labor assures that this dilemma can be mitigated by resolving receive 100% subsidy within the first 45 days about a new job.

Extend it to persons under 45 years of age and agricultural workers.

Another Labor Party idea is that the subsidy would apply to people under 45 with no family responsibilities and to agricultural workers, regardless of where they live. Today, the majority of recipients of this type of subsidy are over 52 years of age. The other large group that received them were those with family responsibilities, but those under the age of 45 who were not family dependents did not have the protection they qualify as “protective vacuum”. On the other hand, the ministry considers it unfair that today only residents of Andalusia and Extremadura can receive agricultural subsidies, so they will extend it to all autonomous communities.