Labor will propose a new subsidy decree although it will be applied later

Podemos's decision to overturn the unemployment benefit reform decree will force the Government to approve another one, since the measure is committed to the European Commission within component 23 of the Recovery Plan.

Oliver Thansan
Oliver Thansan
10 January 2024 Wednesday 09:21
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Labor will propose a new subsidy decree although it will be applied later

Podemos's decision to overturn the unemployment benefit reform decree will force the Government to approve another one, since the measure is committed to the European Commission within component 23 of the Recovery Plan. Sources from the second vice presidency confirmed yesterday that they will raise the regulations again in a future Council of Ministers. The political consequences of the defeat are notable, since since 2018 the Executive had only seen one decree decline.

At the application level, the consequences are also important. The decree contemplated a delay in the application of the level of care until June 1, based on the “profound changes” implied by the new regulations. Now, Work alert, the delay in the application will be longer.

The refusal of validation also leaves the increase in the amounts agreed upon by Economy and Labor in a drawer. In the first six months the subsidy rose to 570 euros, in the following semester it remained at 540 euros and, in the following year, at the current 480 euros.

Podemos's negative vote was due to the “cut” that, in its opinion, the repealed rule implied. Today, a recipient of the subsidy over 52 years of age contributes for retirement at 125% of the minimum base. With the reform he had contemplated a transitional regime in which the base would drop to 105%.

Second Vice President denied any decrease. “Before, this overpayment was needed because workers could not contribute enough to have decent pensions,” explained the Secretary of State for Labor, Joaquín Pérez Rey. But “with the current SMI the contribution is decent and no longer requires that patch,” he added. Unai Sordo, leader of CC.OO., proposed to Calviño a virtuous incentive for recipients to accept job offers. He did not prosper.

With the repeal of the decree, its extension to those under 45 years of age without family responsibilities is also put on hold. Temporary agricultural and cross-border workers from Ceuta and Melilla may not apply for it either. Likewise, you will have to wait for the extension of breastfeeding permits and the prevalence of the regional agreement agreed with the PNV.