The new SEPE aid reform maintains the conditions of the subsidy for over 52s since it came into force on 1 November. In this way,their beneficiaries do not benefit from the increase in the amount of the rest of the benefits and continue to receive 480 euros per month (80% of the IPREM). Of course, it is also claimed that the organization contributes 125% of the minimum base to social security, a benefit that aims to improve future contributory pension and which the rest of the aid does not enjoy.
What changes for unemployed people over 52 is the chapter on obligations. Now, with the new reform in force, they will have to file their tax return twice a year. The first procedure,mandatory already before November 1st,is the annual tax return,a documentation requested by SEPE itself to guarantee that the beneficiaries of this specific aid do not exceed an income equivalent to 75% of the SMI. It should not be confused with the new mandatory procedure since the reform came into force for the benefits of any subsidy: the declaration corresponding to the personal income tax (IRPF) before the Treasury.
The first document, the DAR, must be presented when twelve new months have passed as the birth of the right to the benefit or whenever twelve new months have passed since the last reopening. The deadline for submission is fifteen working days from the date indicated. If this procedure is not completed, payment and contribution to the benefit will be stopped.
The new obligation included in Royal Decree Law 2/2024 is to “submit annually the corresponding declaration for the personal income tax (IRPF)”. That is, “lifetime” tax filing is added to the DAR for those over age 52. The provision provides that all unemployed people who already receive any Sepe subsidy this year must submit their tax return in 2025, between April and June.A need that will also be repeated in subsequent years, provided that this article of the new, already approved Royal Decree remains in force.
Reporting to the Treasury will be mandatory, regardless of the timing or amount of the benefit in question. Moreover, it does not matter whether the minimum income has been reached or whether there are multiple taxpayers. By simply collecting the aid from SEPE, this procedure must already be carried out if the beneficiary does not want to see the collection of the aid in jeopardy. If this is not respected, beneficiaries are exposed to the suspension of the benefit and could even be asked to repay the aid.
What are the eligibility criteria for the new SEPE aid reform for unemployed individuals over 52?
Interview with Economic Expert on the New SEPE Aid Reform for Unemployed Individuals Over 52
Editor (Time.news): Thank you for joining us today. We’re discussing the recent SEPE aid reform that maintains the conditions for unemployed individuals over 52 years old. What are the main highlights of this reform?
Expert: Thank you for having me. The reform, effective from November 1, preserves the subsidy amount for those over 52 at 480 euros per month, which is 80% of the IPREM. However, it introduces new obligations for beneficiaries which could substantially impact their financial planning.
Editor: Speaking of obligations, could you elaborate on the responsibilities that unemployed individuals over 52 now have to comply with under this reform?
Expert: certainly. Beneficiaries must now file their tax returns twice a year. The first is the annual tax return, which has been a requirement to ensure that beneficiaries do not exceed an income equivalent to 75% of the SMI. The new addition is the mandatory personal income tax declaration, which they must submit annually, starting in 2025.
Editor: What happens if beneficiaries fail to comply with these new filing requirements?
Expert: Failure to submit the required tax documents may lead to serious consequences. If they do not file the DAR or the personal income tax return on time, their benefits could be suspended, or they might potentially be asked to repay the aid. This adds a layer of urgency for individuals navigating already challenging circumstances.
Editor: The reform also includes some provisions related to social security contributions. Can you explain that?
Expert: Yes, a significant aspect of the reform is that the SEPE will contribute 125% of the minimum contribution base to social security for beneficiaries.This is intended to enhance their future contributory pension. This benefit is not available to other groups of aid recipients,creating a specific focus on supporting older unemployed individuals.
Editor: How should those affected by this reform prepare for these changes?
Expert: My advice for beneficiaries is to stay organized and proactive. They need to maintain accurate records of their income and seek help if they’re unsure about the filing process. It’s also a good idea to connect with local employment agencies or financial advisors who can provide guidance on compliance and potential financial implications.
Editor: As we conclude, what do you believe are the long-term implications of this reform for unemployed individuals over 52?
Expert: This reform could influence the longer-term employability and financial security of those affected. While it offers continued support through SEPE, the added obligations could discourage some individuals from seeking other employment options if they feel overwhelmed by the bureaucratic requirements. It is crucial for policy makers to continue monitoring the impact of these changes to ensure they effectively support this vulnerable demographic.
Editor: Thank you for your insights today. This information will be invaluable to our readers navigating the SEPE aid reform.
Expert: Thank you for the possibility to discuss these crucial changes.