It often happens that with so many laws, numbers and requirements we are not entirely clear about some concepts or operations of certain possibilities. This could be the case with the contributory unemployment benefit. What is the contributory benefit? Am I entitled to it? How is it calculated?
Actually, when we refer to the contributory unemployment benefit, we are talking about collecting unemployment. In this article we will explain what it is exactly, to whom it is granted, how it is calculated and what the differences are with the unemployment benefit. I recommend you keep reading to learn more about the subject.
What is the contributory unemployment benefit?
When we talk about the contributory benefit, we refer to that benefit that a person receives after having been contributing as a worker for a minimum of time to Social Security. PTo be able to access it, the employment relationship between the person in question and the company must have come to an end. Therefore, if we want to collect the contributory benefit, also known as unemployment, we must be discharged from Social Security as an active worker.
Contributory unemployment benefit granted only to those who meet certain requirements that we are going to list below:
- Finding yourself in a situation of unemployment cool.
- Have quoted a minimum of time in Social Security.
- Have covered a period of at least 12 months in the 6 years prior to legal unemployment.
- Not having reached the retirement age.
- Terminate the employment relationship by termination of contract, ERE or by dismissal.
As we have already mentioned in one of the previous points, in order to qualify for unemployment benefit we must have contributed to Social Security for a minimum period of one year, that is, exactly 360 days. For this time we have four months of benefit, I mean 120 days. From this moment we will receive unemployment for two more months for every six additional months of contributions, until we reach the established limit of 24 months. This corresponds to a quoted period of at least six months.
What is the difference between contributory benefit and unemployment benefit?
Quite often, the terms "contributory benefit" and "unemployment benefit" are confused. Now that we know what the contributory benefit is, we are going to explain what the unemployment benefit implies and thus finish seeing the differences between the two.
It is a non-contributory aid and assistance in nature. It is intended for those who do not have enough income. These are the cases that can opt for unemployment benefit:
- People who do not reach the minimum price to obtain the contributory benefit.
- People who have already fully used up their benefit and they still can't get a job.
- Over 55 years of age who are unemployed.
- Emigrants returning to Spain, as long as their home countries do not have bilateral agreements regarding unemployment.
- Released prisoners who have served a sentence of at least six months.
- People with disability to a degree of permanent partial disability due to the usual profession, after having gone through a permanent disability.
Depending on the circumstance, these requirements must also be met:
- With dependents, the minimum contribution period is three months.
- Without dependents, the minimum contribution period is six months.
- Income must not exceed 75% of the current minimum wage.
How much is charged for the subsidy?
The amount of unemployment benefit is calculated based on 80% of the IPREM (Multiple Effects Public Income Indicates). However, this can be increased if we have more than three people in charge of us and are over 45 years old.
But for how long can we collect unemployment benefits? The duration of it it depends on the number of months we have quoted. In the event that we have dependent children, the minimum contribution period is three months. For these three months we will collect unemployment benefit for four or five months. If we do not have dependent children, the minimum contribution period is six months and we will collect the allowance for six months as well, even if we have contributed more.
How much is the contributory benefit charged?
To know how much is charged from the contributory benefit, we must first know the regulatory base. It is the average of all the unemployment contribution bases belonging to the last 180 days prior to the legal unemployment situation, that is to say, at the moment in which the obligation to quote ended. The previous 180 days are always counted as calendar and followed by one another. There is no possibility to include parentheses.
When calculating the regulatory base for unemployment, the average of all workers' wages for the last six months is taken into account. Overtime is not included in this calculation. Therefore, the more remuneration, the higher the contribution base will be. This, in turn, increases the regulatory basis for profit.
Once we have established the regulatory base according to the existing salary average, it is time to apply 70% during the first 180 days of the contributory benefit in order to determine the amount to which you are entitled. After this first period, the amount of the benefit decreases. Starting on day 181, 50% is applied to the regulatory base in order to determine the amount to be received.
In addition, two types of deductions apply to the gross amount corresponding to the contributory benefit:
- Social Security contribution: 4,7% of the regulatory base. This is the average contribution base of the last six months for contingencies.
- Personal income tax withholding, as long as it is appropriate.
Dependent child
The concept of "dependent child" is of great importance when it comes to receiving unemployment benefits. This is due to the fact that the economic limits, both the maximum and the minimum, with respect to the benefits they depend fundamentally on the family responsibilities of the people in question. But what is meant by a dependent child? The following fall into this category:
- Sons or daughters under 26 years of age.
- Sons or daughters over 26 years of age who have a disability that exceeds 33%.
In addition, it is necessary to demonstrate their economic dependence. For the sons or daughters to be considered in charge, They must not have income equal to or greater than 100% of the minimum interprofessional salary (SMI), apart from living with the person interested in collecting the contributory benefit.
Along with coexistence, the payment of pension is assimilated with respect to food, even if the children live with the other parent. In these cases the concept of child is extended to those of the spouse as well. On some occasions, orphans of both parents can be recognized as dependent children as long as they are dependent on the beneficiaries.
The maximum and minimum limit of the contributory benefit
Once we have calculated the amount corresponding to the contributory unemployment benefit, it must be subject to maximum and minimum limits that depend on the family circumstances of the applicants. The objective of these caps is that the amount of this benefit is similar for both medium and high salaries.
For people who do not have dependent children, the maximum limit of the contributory benefit corresponds to 175% per month of the Public Indicator of Multiple Effects Income (IPREM) increased by one sixth, which amounts to € 2020 in 537,84. In this way, the result corresponds to € 1.098,09 in 2020.
Instead, applicants with dependent children have another maximum cap. This corresponds to 200% per month of the Public Multiple Effects Income Indicator (IPREM) increased by one sixth if it is a single child, which would be equivalent to € 1.254,96 in 2020. In the case of having two or more children, the cap is increased to 225% per month of the Public Indicator of Multiple Effects Income (IPREM) increased by one sixth. This last case would correspond to a total of € 1.411,83 in 2020.
In order to prevent some people from receiving very poor benefits, there are also minimum caps. In these cases, a minimum amount is determined that does not depend on the amounts of the applicant's contributions. In this way, beneficiaries who do not have dependent children receive at least 80% per month of the Public Indicator of Multiple Effects Income (IPREM) increased by one sixth. In 2020, the amount was € 501,98. If the applicant does have dependent children, they will receive 107% per month of the Public Multiple Effects Income Indicator (IPREM) increased by one sixth, resulting in € 671,40 in 2020.