Labor will propose a new subsidies decree, although it will be applied later

Podemos' decision to overturn the unemployment benefit reform decree will force the Central 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 16:12
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Labor will propose a new subsidies decree, although it will be applied later

Podemos' decision to overturn the unemployment benefit reform decree will force the Central 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 the next Council of Ministers. The political consequences of the defeat are noteworthy, since since 2018 the Executive had only seen one decree lapse.

In the field of application, the consequences are also important. The decree established a delay in the application of the level of care until June 1, based on the "profound changes" implied by the new regulations. Now, warns Treball, the delay in the application will be greater.

The refusal to validate also leaves in a drawer the increase in the amounts agreed by Economy and Work. The first six months the allowance rose to 570 euros, the following semester it was 540 euros, and the following year, at the current 480 euros.

Podemos' negative vote was due to the "cut" that, in their opinion, implied the repealed rule. Today an allowance recipient over 52 contributes towards retirement at 125% of the minimum base. With the reform, a transitional regime had been foreseen in which the base would drop to 105%.

The second vice presidency denied any decrease. "Before, this over-contribution 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 quote is decent and no longer requires that patch", he added. Unai Sordo, leader of CC.OO., proposed to Calviño an incentive so that receivers can accept job offers. It did not prosper.

With the repeal of the decree, the extension to more than 45-year-olds without family burdens is also parked. Temporary agricultural and cross-border workers from Ceuta and Melilla will also not be able to apply for it. Likewise, the extension of breastfeeding leaves and the prevalence of the regional agreement agreed with the PNB will have to wait.