The Ministry of Labor and Social Economy wants to simplify and improve the level of unemployment protection assistance and create a new service that will integrate all existing ones, that will come into force from 2022 and will have an amount of 80% of the Iprem (451.90 euros per month, according to the Iprem of 2021).
This is reflected in reform 10 of component 23 of the Transformation, Recovery and Resilience Plan, where it is stated that the reform is aimed at replacing the level of unemployment protection, regulated in the General Social Security Law and in the Active Insertion Income (RAI) and extraordinary unemployment benefit (SED), integrating them into a new benefit, complementary to contributory protection, that protects the transition to employment situation.
The text explains that it would be integrate into the ordinary allowance for exhaustion the extraordinary modalities that have been created at different times. Likewise, it is pointed out that this integration will be done in coordination with the development of the Minimum Living Income (IMV), which includes the increase of its beneficiaries and the development of inclusion itineraries.
The nature of the new subsidy will be that of a unemployment benefit, complementary to the contributory level, linked to previous contributions and financed from the budget of unemployment benefits and whose management will be attributed to the Public Service of State Employment (SEPE) and the Social Institute of the Navy (ISM).
To access this subsidy, the accreditation of 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.
As indicated in the Plan, the purpose of this measure is to expand unemployment protection, improving coverage by extending the duration of subsidies and eliminating lack of protection from current programs, but also simplify system operation, reducing the number of figures to give more clarity, legal certainty and facilitate management.
In addition, it is intended to link this protection with the commitment to monitor and carry out a personalized employment itinerary and allow the benefit to serve as a transition towards social protection when the beneficiary does not rejoin the labor market and is in a situation of vulnerability.
The group that is the object of this reform is that of people who exhaust their contributory benefit and remain unemployed and people who prove more than six and less than twelve months of contributions, so that they cannot access the contributory benefit. However, the Ministry of Labor makes it clear in the text of the Plan that the definition of regulatory changes will be addressed at the social dialogue table with social agents.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.