After weeks of confrontation between the Ministries of Labor and Economy, and a negotiating marathon during the last few hours, the agreement was closed just in time for the Council of Ministers to approve the unemployment benefit reform yesterday. The white smoke already arrived in the morning, shortly before the meeting of Pedro Sánchez with the ministers. The agreement foresees that the aid for the unemployed who have exhausted their right to the benefit or who do not have the right to receive it will be more generous in amount and number of beneficiaries, the perception will gradually decrease and can be compatible with a salary for six months.
It was a key issue because it is part of the commitments reached with Brussels, component 23, which required closing before the end of the year to aspire to full collection of a new payment of 10 billion from Recovery Plan. The two economic departments considered that the demands are fulfilled and both had to resign from positions of maxims.
The unemployment benefit will increase the monthly amount from the current 480 euros (80% of the Public Income Indicator of Multiple Effects, Iprem, the official reference for calculating social benefits) to 570 euros (95% of Iprem) during the first six months and will be gradually reduced, which was one of the requests of Nadia Calviño’s team. The next six months will be 540 euros (90%) and for the rest of the duration of the benefit it will remain at the current 480 euros. Treball lowered the initial positions because the amounts it proposed during the first steps of the negotiation, which reached 660 euros each month, would exceed contributory benefits. The maximum subsidy collection period will continue to be 30 months, as claimed by Yolanda Díaz; Economy proposed to reduce it to 12 months.
On the other hand, the agreement foresees an increase in coverage, which now reaches 716,000 beneficiaries. Groups excluded until now are included in the subsidy, such as the unemployed under the age of 45 without family burdens. The potential agricultural workers and cross-border workers in Ceuta and Melilla will also be able to benefit.
Another important point is that, following the agreement reached yesterday, it will be possible to match the receipt of the subsidy with a salary during the first 180 days as a formula to facilitate the transition of the unemployed to employment. An intermediate term between the 45 days proposed by Labor and the year advocated by Economy. An additional element is that the waiting month to access unemployment is eliminated and the system is simplified.
Economy has managed to incorporate into the reform some issues that increase control over the collection of the subsidy. Specifically, the benefit will be linked to an activity agreement that will be reviewed quarterly. In addition, the beneficiary will have the obligation to present the declaration of personal income tax. The new configuration of the subsidy also incorporates a gateway so that beneficiaries who exhaust the benefit start receiving the minimum income.
Yesterday’s agreement puts an end to a confrontation between the Ministries of Labor and Economy, which maintained divergent approaches. It was the last big discrepancy between him and Yolanda Díaz before the departure of the first vice-president at the European Investment Bank (EIB). Resolving the conflict was not easy. In fact, unblocking the agreement required the intervention of Moncloa. Labor had to contact the Presidency cabinet in the morning due to the blockade of Economy, explain Sumar sources, to be able to go ahead with the negotiation.
Finally, the decision taken by the coalition Government is Solomonic. The agreement increases the amount of the benefit, but establishes the mentioned decreasing scale, with an amount that is reduced as the subsidy is extended, as Economia claimed. As for the compatibility period between the collection of aid and the receipt of a salary, it remains at six months, an intermediate zone between the 45 days proposed by Labor and the year advocated by Economy.
The second vice-president, Yolanda Díaz, was in charge of explaining yesterday, after the penultimate Council of Ministers of the year, the reform of this subsidy, which will mainly benefit women, over 52 years old, who do not they will lose it, and the unemployed from autonomous communities with a more important unemployment impact. He specifically mentioned Andalusia, Madrid and Catalonia.
The Minister of Labor also quantified the surplus of the Employment Service (SEPE) at 7,700 million for now.
The royal decree law to simplify and improve the welfare level of unemployment protection will now have to undergo validation in January at the Congress of Deputies.
