Procedures and Requirements to collect the Subsidy

Unemployment subsidy is the help that the unemployed can receive if they have exhausted unemployment or do not have enough contributions to process it. To be a beneficiary of a subsidy, certain requirements must be met, which we tell you below.

The lack of income is one of the main requirements that all applicants must be able to prove in order to receive aid from the INEM.

Lack of income means not having economic resources to meet basic needs.

The SEPE establishes that a person lacks income when the sum of their income is less than 75% of the Minimum Interprofessional Salary (SMI). For the year 2018 this figure stands at 551.93 euros per month. If this is your case and you are interested in knowing the requirements to receive the subsidy We will explain it to you simply below.

Requirements to collect Subsidy

In the event that a worker has ceased their work activity and is not entitled to the contributory benefit, or has exhausted it, they could have access to the unemployment subsidy («aid») as long as they are not entitled to the contributory benefit, does not have income above 75% of the minimum wage, and/or meets the following assumptions:

Procedures to collect subsidy

To process an unemployment subsidy we have to provide the following documentation:

1. official application form which will include the activity commitment, direct debit, and the declaration of income and family responsibilities.
2. You must show an identification document:
   1. ID in the case of Spaniards.
   2. Foreigners have to identify with the Foreigner Identity Card (TIE) or Foreigner Identity Number with the passport.
3. A bank document that includes the account number in which we want to receive the benefit. It is important to be the owner of the account provided.

Download the application form here: UNEMPLOYMENT ALLOWANCE APPLICATION FORM

How much subsidy is charged?

The amount of the unemployment subsidy will be in all cases 80% of the Multiple Effect Public Income Indicator (IPREM). For the year 2018, this amount stands at 430.27 euros per month. When the applicant has worked part-time, the amount will be reduced in proportion to the hours worked.

In the case of the subsidy for people over 55 years of age, the SEPE will also enter the contributions corresponding to Social Security until retirement.

With regard to payment, a monthly payment will be made to the bank account provided by the applicant at the time of processing the aid. It will be done for months in arrears.

How is the amount of the subsidy calculated?

What is charged is a percentage of the worker’s regulatory base, which is the first item to be calculated.

I) The regulatory basis

The regulatory basis It is the average of the bases for occupational accidents and professional illnesses (excluding remuneration for overtime) corresponding to the last 180 days of contributions prior to the legal situation of unemployment or the moment in which the obligation to contribute ceased. Put more simply: the daily average of the contribution bases that the worker has had during the last six months of contributions is calculated.

II) The percentage

Once the worker’s regulatory base is known, for example, €30/day, the unemployment benefit pays a percentage of that regulatory base.

– During the first six months, the daily amount to be charged will be 70% of the worker’s regulatory base.

– As of the seventh month (day 181), unemployment is reduced and only 50% of the base is received.

By law, the maximum and minimum amounts that can be charged for the contributory benefit are established each year. Data for the year 2015:

The maximum and minimum amounts are reduced proportionally when there are part-time contracts.

In the case of unemployment due to the loss of a part-time job, the minimum or maximum amount will be based on the number of hours worked during the period of the last 180 days quoted. Before the reform of RDL 20/2012, the maximum and minimum limits were calculated based on the last contract. Now it is based on an average of the last six months worked.

What is the Subsidy?

It is an aid (financial or otherwise) that is granted to people who do not have a job and are looking for one. In the official Spanish terminology, “unemployment benefit” is the name of the “contributory” type benefit, that is, the one to which you are entitled if you have previously contributed.

In Spain, “assistance” type benefits, that is, those to which one is entitled due to a special situation of need, have various names, the most general of which is “unemployment subsidy”. Currently only 46 out of every 100 unemployed receive some form of benefit.

Types of subsidy in Spain

How often is the subsidy paid?

As a rule, the old INEM orders unemployment payments between the 10th and the 15th of the month – this in terms of unemployment benefit, unemployment – and subsidies for 426 euros per month. Although there are cases of delays, it is known that payments generally occur on the 10th of each month.

If all goes well and there are no mishaps, between the 10th and 15th of each month you will receive your unemployment moneyin line with the legal margins that companies have to enter their workers’ payroll.

How long does the subsidy last?

This time interval varies according to the family responsibilities that the subsidized person has:

• without family burden, 180 days of contributions will be needed and you will be able to receive the subsidy for 6 months.
• those who do have a family charge will only need 3 months of contributions and will be able to obtain the subsidy for a period of 21 months.

It is important to note that these subsidies are to provide assistance to unemployed workers while they do not obtain a job in a specific period of time.