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Date Published: 13/09/2024

Get paid a salary while claiming unemployment benefits: How Spain hopes to get those on the dole back into work

Contracted workers in Spain who earn less than 2,250 euros will be able to receive unemployment benefit and their salary at the same time

From this November, unemployment benefit in Spain will also rise from 480 to 570 euros

Get paid a salary while claiming unemployment benefits: How Spain hopes to get those on the dole back into work

From April 2025, workers in Spain will be able to combine their salary with unemployment benefits, receiving both payments at the same time. This change, part of a new unemployment benefit reform approved by the Spanish government in May, is designed to help long-term unemployed individuals reintegrate into the labour market.

The reform, which will come into effect across Spain, introduces several key changes, among them the possibility for salaried and contracted employees to continue receiving unemployment benefits while earning a wage. This benefit will be available for a maximum period of 180 days and aims to encourage the unemployed to accept job offers without the risk of losing their unemployment benefits.

In addition, from November 2024, the unemployment benefit amount will rise from 480 euros to 570 euros for the first six months, and the opportunity to combine this with a salary will begin in April 2025.

Who can benefit?

To qualify for the 2025 combined unemployment benefit and wage scheme, individuals must:

Be registered as job seekers for at least one year
Have received at least nine months of contributory unemployment benefit
Earn less than 2,250 euros gross salary per month, a figure equivalent to 375% of the Public Multiple Effect Income Indicator (IPREM)
Be employed part-time or full-time for a period not exceeding 180 days

This threshold of 2,250 euros is considered quite generous, as it is nearly 1,000 euros over the minimum wage in Spain, which currently stands at 1,323 euros per calendar month.

The combination of salary and unemployment benefit is intended to make it easier for those in vulnerable situations to re-enter the labour market. Those who have exhausted their contributory unemployment benefits but continue to receive unemployment assistance are also eligible.

This announcement comes at the same time as the Spanish government passed a long-awaited decree recognising new labour rights for domestic workers, including cleaners in homes. This group, predominantly women, has historically been denied the same severance pay as other employees.

How to apply for unemployment benefits in Spain while working

Applications for wage and unemployment benefit compatibility will be handled by the State Public Employment Service (Servicio Publico de Empleo Estatal or SEPE). You can apply online through the SEPE platform or visit SEPE employment offices in person to complete the necessary procedures.

To ensure the fair use of this new benefit, the Spanish government has announced that the Labour Inspectorate will collaborate with SEPE to prevent fraud.

Time will tell if the reform manages to achieve its stated aim of marking a shift in the approach to unemployment benefits and of supporting long-term unemployed individuals while encouraging re-entry into the workforce without fear of losing their financial safety net.

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