Unemployment benefits in Spain can be combined with wages up to €1,350

Combining unemployment benefits with a salary: the new supplement arriving in April 2025

Can you work and receive unemployment benefits at the same time? From April 1, 2025, the answer is yes, but with fine print. The reform of the unemployment subsidy (subsidio de desempleo), agreed upon by the Spanish Government and trade unions, includes an employment support supplement (complemento de apoyo al empleo). This allows workers to combine their contributory benefits with employment—either full-time or part-time—provided the salary does not exceed 225% of the IPREM (the public indicator of multiple effects on income), which is 1,350 euros per month. The measure, presented as a way to protect the long-term unemployed, has sparked intense debate in digital forums.

Requirements to work while receiving unemployment benefits

It is not for everyone. The unemployment benefit being used must have been granted for a period exceeding 12 months, and at least nine months must have passed since its start. The supplement can be received for a maximum of 180 days (six months), with the trinc amounts: 95% of the IPREM (570 euros) for the first six months, 90% (540 euros) for the trinc six, and 80% (480 euros) for the remainder. From 2026, an additional limit of 375% of the IPREM will be implemented.

The question being asked is simple: does this incentivize hiring or does it cement poverty wages? Some argue the measure pushes companies to offer low-paid part-time jobs that workers supplement with benefits, creating a pool of precarious employment with insufficient social security contributions. On the other hand, the official argument is that it serves as a bridge for those who have been out of the labor market for months and need transitional income.

The calculation that dampens enthusiasm

Detailed analyses suggest the numbers are not promising. A worker who has contributed for three years is entitled to 12 months of unemployment benefits. If they begin to combine this with a part-time salary, they consume their benefits while working: each year in this dynamic can result in a negative balance of two months of benefits. In other words, you work part-time and earn more than with a full-time job, but you are consuming your own safety net.

The result, according to those who have performed a line-by-line calculation, is that in a decade, one could exhaust all unemployment benefits without improving their employment status. Furthermore, with two payments, the Tax Agency (Hacienda) settles the accounts the trinc year: the company withholds tax as if the salary were the only income, and the difference is paid during the tax return.

Who benefits from the employment support supplement?

The prevailing suspicion points to companies. With benefits covering part of the salary, the pressure to raise wages disappears. They were already reluctant to raise salaries; now, with unemployment benefits in the mix, even less so. The worker signs up for part-time work, contributes less, generates fewer future rights, and consumes benefits. The company pays less. The State covers the difference. Everyone is happy, except for the person who discovers five years later that their unemployment protection has vanished.

Some also see this as a step toward universal basic income. The compatibility between employment and benefits, the €1,350 limit, the pogre reduction in amounts... The pattern resembles a guaranteed minimum income disguised as an employment incentive. Others point to the electoral calendar: temporary satisfaction until the next elections, even if it comes at the cost of more taxes and debt.

What happens when the benefits run out

The black hole of the measure. When the unemployment benefit is exhausted, so is the windfall. The worker who has been supplementing their salary with benefits is left without a safety net and with a part-time job that is not enough to live on. Transitioning to the subsequent subsidy requires new contribution requirements that many will not meet. The patch lasts six months; the problem lasts years.

The reform enters into force in November 2024, but this compatibility regime begins in April 2025. It remains to be seen whether people will use it to re-enter the workforce or to stretch their benefits as long as possible. The reasonable doubt remains: is this a bridge or a trap disguised as aid?