SEPE (State Public Employment Service) will provide unemployment benefits starting in 2027 to workers who can demonstrate an income of less than 964 euros per month. This is something that has been in place for several years, although the figures differ, as the new cap is an administrative result of the government’s decision to increase the minimum interprofessional salary (SMI) by 5.3% next year. We tell you the details.
SMI increased, subsidy limit increased. Most unemployment benefits in Spain which are conditional on income require that applicants do not earn more than 75% of SMI excluding the proportional part of the two annual extraordinary payments. SMI currently stands at 1,221 gross euros per month in 14 payments, setting the limit at 915.75 euros according to figures published by SEPE itself.
The Labor Ministry draft puts the 2027 SMI at 1,286 euros, i.e. 18,004 euros per year, as reported by El Paes. 75% of that amount is equivalent to 964.50 euros. Therefore, the threshold increases by about 50 euros per month.
The condition is included in Article 275 of the General Social Security Act. SEPE checks the subsidy when someone first applies for it and each time it is extended or restarted. To do this, it considers the income from the calendar month preceding each date.
What counts as income. According to the law, rental income, income from self-employment, bank interest, pension, alimony and other public or private benefits, as well as certain capital gains and income from assets are counted. Salaries are calculated in their total amount, including a proportional part of overtime payments.
between the lines. The winners are those whose incomes would have been just above the 2026 limit and just below the 2027 limit, so they are really low. Passing the income test also does not guarantee a subsidy, as applicants must meet other requirements for each procedure. Among them are:
- Contributory unemployment benefits are being phased out.
- Must be above 52 years of age.
- Have less than 360 days of contributions.
Some subsidies allow you to reapply later if you meet income requirements after a previous denial. So there might be a second chance for those people.
What does not change. Subsidies are calculated from the IPREM (Multiple Effects Public Income Indicator) instead of the minimum wage, and as Noticius Trabajo points out, the IPREM is frozen at 600 euros per month from 2023. Unless the government updates it, the subsidy for those over 520 will remain for over 520 years. SMI tells you whether you can apply for a subsidy, and IPREM, how much. to realize
and what now. The figure is not yet final, as El Pais shared, the draft is open for public consultation until November 16. The government can approve it in the cabinet before general elections on November 17 or November 24 at the latest. The Labor Ministry wants to settle the hike before the elections, so that it does not depend on the next government or governments. The minimum wage is set by decree, so no parliamentary approval is required.
Employers’ associations CEOE and Cepyme want the decision postponed until after the election, and the CCOO and UGT unions, which requested a 7% increase, did not support the 5.3% increase.
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