Thursday, 22 February 2024
BusinessThis is how the new Social Security contributions are while you receive...

This is how the new Social Security contributions are while you receive a subsidy for those over 52 years of age

The subsidy for those over 52 years of age is the most paid subsidy of all those managed at the assistance level by the State Public Employment Service (SEPE) and is an alternative for people close to retirement age and without the right to unemployment. can maintain their quote.

Currently, the subsidy for those over 52 years of age can be collected until reaching that retirement age and entails a retirement of 125% of the minimum contribution base. Thanks to this, their beneficiaries continue to contribute to Social Security and alleviate the possible negative impact of a prolonged period of unemployment within the 25 years prior to that retirement age, which determine a worker’s regulatory basis for their future pension. retirement.

However, this will change starting in 2024. One of the measures that the Government has decreed in the reform of unemployment benefits has been the gradual reduction of Social Security contribution while the subsidy is collected for those over 52 years of age.

This is explained by the third transitional provision of Royal Decree-Law 7/2023, of December 19 (can be consulted at this link): all the benefits of the subsidy for those over 52 years of age whose initial right is from June 1 They will have lower contributions.

The Royal Decree-Law contemplates a progressive calendar by which these contributions are reduced:

  • In 2024 the price will be 120% of the minimum base contribution of the General Regime.
  • In 2025 the price will be 115% of the minimum base contribution of the General Regime.
  • In 2026 the price will be 110% of the minimum base contribution of the General Regime.
  • In 2027 the price will be 105% of the minimum base contribution of the General Regime.

The text specifies that these new contributions will only be applicable to people who become entitled to the subsidy as of June 1, 2024. Those who were already collecting the subsidy before will not see their contributions reduced: “During the receipt of the subsidy for older workers of fifty-two years whose date of birth of the initial right is prior to June 1, 2024, the managing entity will continue to contribute for the retirement contingency, taking as the contribution base 125% of the minimum contribution ceiling in force at all times” .

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