In order to claim El Paro (unemployment benefit) in Spain, you must have contributed to the system and the amount that you receive is dependent on various factors. El Paro can be claimed from 4 months up to a maximum of 2 years, depending on the contributions accumulated during the previous 6 years.
To qualify:
To receive El Paro from the first day after your contract ends, 2 registrations must be made within 15 working days of your contract ending.
There are several factors that will determine how much unemployment benefit you receive, for example: the number of children per family, whether you have claimed previously and how much you were earning each month whilst employed (taking the average figure from the last 6 months).
Typically, the amount will be 70% of the gross amount of your monthly wage for the first 6 months. After this, the percentage is then reduced to 50% of your monthly wage.
However, there are minimum and maximum amounts that you can claim, for example the maximum amount available in 2020 for people without children is €1098.09, and the minimum is €501.98.
Please note: The Government will deduct your social security contribution from your unemployment benefits (of course, the amount varies per person). Therefore, whilst receiving unemployment benefit, the worker must remain registered with Social Security and deductions will be made for things such as; Family Protection, Retirement, Permanent Disability, Death and Survival, Temporary Disability, Maternity, Health and Pharmaceutical Assistance.
The amount deducted will be the average of the worker’s contributions for these things in the last six months of employment. However, payment of the business contribution will be made in full by the Spanish Public Employment Service.
In order to maintain job seeker status, it is necessary to renew your unemployment card (DARDO) on the dates indicated.
On the last day of your employment, your employer will ask you to sign a Finiquito. Make sure you check it thoroughly for any errors and ask your employer to explain the calculation before signing it, as once signed, you cannot challenge it.
The Finiquito is a receipt that lists the payments due and their concepts, the sum will have accumulated over the length of your contract but may not have been paid to you by the time the contract ends. Therefore, it serves as acknowledgement of payments that need to be signed by the employee.
Such payments include:
