The new one-off grant from 452 euros for people who have exhausted the strike prepared by the Ministry of Labor for its second wave of reforms will benefit more than a million people. This pretends unify the more than eight subsidies or active insertion income that currently exist and that its current recipients collect this new transfer. The reform will come into force progressively during 2022, according to the commitment transferred to Brussels in the Recovery Plan, although still It does not have a specific date and a large part of its details will have to be negotiated with the employers and the unions; as explained this Monday at a press conference by the third vice president, Yolanda Díaz.
The Labor Minister has also not detailed whether within that reform of the unemployment protection system it will suppress the changes introduced by the PP, which reduce the amount of ordinary unemployment benefits of the 70% al 50% from six months. During the current COVID crisis, Labor has approved changes in this regard so that long-term workers do not see their benefits reduced. However, in the Plan sent to Brussels there is no explicit mention of it and this Monday Díaz has cleared no doubts. His intention, as he has stated, will be to “prioritize” extending the coverage of the different mechanisms over time, either through benefits or subsidies.
Reform number 10 of component 23 sent to Brussels seeks to unify the wide range of subsidies, designed for those people who have already exhausted their unemployment benefit or have not directly had access to it. Currently, adding the panoply of the different non-contributory benefits, a total of 1.17 million unemployed receives some type of public payroll, either the subsidy for people over 52 years of age, an active insertion income (RAI) or an agricultural income; according to the latest data published by the Ministry of Labor.
The purpose of this reform -which appears in the second wave of modifications, after the first that is scheduled for 2021- is to simplify the model and expand unemployment coverage. That is to say, that more unemployed people charge it and that they charge it for a longer time while they continue in that situation. According to the latest data for March, four out of ten unemployed do not charge any type of benefit or subsidy managed by the SEPE.
The details of the reform are pending to be addressed and finalized with the social agents and the transition is expected to be gradual. In other words, not all subsidies will converge at the same rate towards this new single subsidy. The amount transferred to Brussels is 80% of the Iprem, an indicator that the Government reviews periodically and that currently stands at 564.90 euros per month. That is, 80% would be 451,9 euros and if the Government decides to raise it, then that new subsidy would also go up.
In order to access this new subsidy, the SEPE will require the unemployed person to accredit the lack of individual income and, in some cases, family responsibilities and the commitment and fulfillment of a personalized employment itinerary before the competent public employment service. The duration of the same will depend on the age, family circumstances and the duration of the exhausted benefit, with the aim of extending the current maximum period of the ordinary subsidy, incorporating the extensions of the extraordinary subsidies still in force.
The weight of assistance benefits within the range of aid managed by the SEPE has grown substantially since the financial crisis of 2008. Currently, 52.7% of the 2.2 million payments made by the public employment service in March were welfare benefits that will be eligible to be integrated into that single subsidy from 2022.
“The legislature is going to end”
The creation of this unique grant is one of the eleven reforms that appear in component 23 of the Recovery Plan sent to the European Union to receive European funds. The third vice president, Yolanda Díaz, gave an account of it on Monday, promising a “great revolution in employment.” This will begin this same 2021, in which the negotiators of his ministry have a very busy schedule. Well, in the seven months remaining to 2021, his team has promised to have seven of these major reforms negotiated and approved in the Official State Gazette (BOE).
The first and most immediate is the new ‘Rider Law’, which will be approved this Tuesday in the Council of Ministers. This will see the light after six months of negotiation, two at the expense of technical reports from the Ministry and with a transition period of three months that will expire this August. And after this, the two most far-reaching reforms will be the labor counter-reform, the simplification to three of the contract models and the reordering of active employment policies. In the first two the differences between employers and unions are profound and the overall deal is expected to be complicated. However, Díaz has reiterated his message from recent weeks in this regard: everything will be closed in 2021. “The deadlines are not discussed […]We have set a date and it must be met, “said the third vice president.
These three blocks will be the highlight of the first wave of reforms that Yolanda Díaz intends, which will be followed by a second wave with the unemployment protection system as a key element. For all this, the third vice president and leader of United We Can in the Government needs time and her will is to speed up the coalition with the PSOE. “The legislature begins now” and “is going to end,” he asserted on several occasions during his speech this Monday.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.