Spain has a solid unemployment insurance scheme which provides benefits for up to 720 days, depending on the number of contributions paid, at a level of 70 percent of the wage used as a basis for the payment of contributions for the first 180 working days, and 60 percent from the 181st day. Nevertheless, the crisis has had a major impact on the Spanish labour market. In the third quarter of 2009, there were 4,123,000 unemployed persons in Spain, which represents a rate of 17.9 percent.

In view of this new situation, the Government has established the Temporary Programme for Unemployment Protection and Insertion, the objective of which is to broaden on a temporary basis the protection afforded to unemployed workers who have exhausted their unemployment benefits and are in a situation of need due to the lack of other income. Those covered by the new benefit consist of all unemployed persons under 65 years of age who:

- come to the end of their unemployment benefit between 1 August 2009 and 15 February 2010;

- does not have income, taking into account the family unit, above 75 percent of the minimum interoccupational wage, that is EUR 468; and

- are registered as jobseekers and undertake various employment integration activities.

The new Programme provides a benefit of EUR 421.79 for up to six months and is supplemented by measures intended to reinforce employability through participation in an active path of employment insertion, with a view to addressing and achieving the objectives of both social protection and re-employment.

Source: Plan Español para el Estímulo de la Economía y el Empleo, www.plane.gob.es

Reference: Real Decreto-Ley 10/2009, de 13 de agosto de 2009

Implementation date: 09.2009