A woman waits by a job centre in Madrid.
Extra payout planned for when jobless benefits have run out

Extra payout planned for when jobless benefits have run out

550,000 people whose rights ended during the crisis are affected, but unions have warned not to forget those 1.6m whose benefits stopped before


Friday, 14 August 2020, 15:55


People who have run out of entitlement to unemployment payments during the Covid-19 economic crisis will get a special payout of 430 euros a month for three months, the government has said. Ministers hope to reach agreement with unions and business leaders so that 550,000 people who are expected to find themselves in this situation shortly will be able to benefit.

The 430.27 euros, which could start being paid out from October onwards, will apply to those who haven't benefited from ERTE furloughing measures. The amount is based on 80 per cent of the IPREM level, the government's minimum wage indicator. The measure is expected to cost 710 million euros.

"During the pandemic, some of the people who were unemployed used up their entitlement to payouts or support and haven't been able to find work due to the emergency situation," said the Ministry of Work.

Claimants won't have to prove they are below a minimum income level, as can happen with other subsidies of this type.

The large UGT union has pointed out that those who were officially unemployed or had run out of rights to benefits during the crisis were at a disadvantage, compared to those that were on ERTEs, as the latter haven't had to have paid a minimum amount into the system to benefit and largely haven't had their payments taken from the pot of benefits they are entitled to.

A spokesperson also stressed that there are another estimated 1.6 million people who had used up all their accumulated benefit rights before the crisis due to the length of time out of work, or never had any entitlement, and that these shouldn't be forgotten either.

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