Unemployment Benefits and Coverage in Spain: Eligibility and Procedures

Unemployment: Situation and Types

Unemployment occurs when individuals are capable and willing to work but lose their jobs, either temporarily or permanently.

Types of Unemployment

• Total Unemployment: This happens when a worker ceases activity, either temporarily or permanently, in a developing sector and is deprived of their salary.
• Partial Unemployment: This occurs when working hours are temporarily reduced by at least one-third, with a proportional reduction in salary.

Coverage of Unemployment

The General Law of Social Security protects unemployed workers at two levels:

• Contributory Level: Unemployment benefits are provided to individuals who cease work or have their working hours reduced.
• Assistance Level: A subsidy is granted in situations where individuals lack income higher than the minimum interprofessional wage. This subsidy is not available to those seeking their first job and have never contributed to Social Security. A minimum period of occupation and contribution to Social Security is required to enjoy this provision.

Unemployment Benefits: Eligibility

To be eligible for unemployment benefits, you must meet the following requirements:

• Be affiliated with Social Security.
• Have completed the qualifying period.
• Be in a legal unemployment situation.
• Not have reached the standard retirement age.
• Be registered as a job seeker.

Procedures for Applying for Unemployment Benefits

1. Register as a job seeker.
2. Apply for recognition of the provision within 15 days.

Required Documents

• Application form (provided at the employment office).
• Letter of dismissal.
• Certificate from the company showing the contribution bases for common contingencies and unemployment during the last 180 days.
• Copies of official documents of contribution to Social Security.
• Photocopy of NIF (National Identity Document).
• Commitment to activity.

Level of Unemployment Benefits

The level of unemployment benefits depends on the regulatory base, which is calculated based on contributions made during the last 180 days.

Contribution During the Period of Unemployment Benefits

During the period of receiving unemployment benefits, the managing entity will pay Social Security contributions on behalf of the recipient. The company's contribution will be assumed, and the worker's contribution will be deducted from the benefit amount.

Duration of Unemployment Benefits

The duration of unemployment benefits depends on the time of occupation in the six years prior to the legal status of unemployment.

Taxation of Unemployment Benefits (IRPF)

Unemployment benefits are subject to the Personal Income Tax (IRPF).

Suspension of the Right to Unemployment Benefits

The right to unemployment benefits will be suspended in the following cases:

• For one month if the beneficiary:
  • Fails to appear before the managing entity when required.
  • Fails to renew the job demand in the established form and date.
  • Fails to return the proof of having appeared at the place and date indicated to cover the offers provided.
• If the beneficiary is serving a sentence that implies deprivation of freedom. However, the right will not be suspended if the beneficiary has family responsibilities and does not have a family income exceeding the minimum wage.

Unemployment Subsidy

Contribution During the Perception of the Subsidy

During the receipt of the unemployment subsidy, the managing entity will enter contributions for healthcare and family protection benefits. For workers over 52 years old receiving unemployment benefits, the managing entity will also continue to contribute for retirement.