How much am I going to collect from unemployment? This is how unemployment benefit is calculated

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Have you become unemployed and want to know how much you are entitled to? Do you want to know your safety mattress if you lose your job? You just have to calculate what your unemployment benefit will be. We explain it to you in detail.

How is my unemployment rate calculated?

The amount of the contributory unemployment benefit, which is what we know as unemployment, depends on your contributions in the last 180 days and on the maximums and minimums that the State Public Employment Service (SEPE) establishes at all times.

As a general rule, the higher your salary, the higher the benefit will also be. From there, the key to finding out how much unemployment corresponds to you is in your regulatory base. These are the steps you must follow:

Find out the regulatory basis for unemployment benefit

To calculate the unemployment that corresponds to you, the SEPE takes as reference the contribution bases of professional contingencies or unemployment (base of Work Accident and Occupational Illness or unemployment).

This information will appear clearly identified in your payroll.

Yes you have worked for more than one company or your salary has changed in the 180 days prior to requesting unemployment, your average contribution base will be used.

Multiply by 0.7 or 0.5

The above data serves as the basis for calculating the unemployment benefit. From there, the specific amount depends on the time you are going to collect unemployment.

  • You will charge 70% of the regulatory base during the first 180 days or 6 months.
  • You will charge 50% of the regulatory base from day 181 until the provision is exhausted.

For practical purposes, this means that to find out your unemployment you will have to multiply the regulatory base by 0.7 for the first six months and by 0.5 afterwards.

A concrete example

Pedro wants to know what unemployment he will be able to collect if he loses his job. Since much of your payroll depends on the commissions you make, your contribution base changes every month.

Pedro reviews the payroll for the last 6 months and notes the contribution bases:

  • Month 1: € 1200
  • Month 2: € 1,300
  • Month 3: € 1100
  • Month 4: € 1200
  • Month 5: € 1100.
  • Month 6: € 1000

With these data, its average contribution base in the last six months is € 1,150. This is the amount on which the unemployment rate is calculated, which will be 70% or € 805 during the first 180 days and € 402.5 from that moment.

How much is the maximum charge for unemployment? And at least?

There are two more elements that affect the amount of unemployment: the maximum and minimum unemployment benefit that you can collect. This figure basically depends on the IPREM or Public Multiple Effects Income Indicator and the number of dependent children.

Specific maximum unemployment increases by each child under the age of 26 and with gross income of less than € 950 per month.

These are maximum unemployment benefits:

  • Without dependent children: you can charge up to 175% of the IPREM or € 1,153.33.
  • A dependent child: you can charge up to 200% of the IPREM or € 1318.10.
  • With two or more children: you can collect a maximum of 1,482.86 euros.

Secondly, the minimum unemployment benefit is also linked to the IPREM. The amounts are as follows:

  • Without dependent children: the minimum is 80% of the IPREM plus a sixth of it or € 527.24.
  • With one or more children: the minimum is 107% of the IPREM plus a sixth of it or € 705.18.

To make it easier for you, the SEPE has an unemployment simulator that you can at this link.

When is unemployment charged?

The SEPE enter unemployment between the 10th and 15th of each month and always a month overdue. That is, if you request unemployment on January 6, you will not collect it until February, for example.

During the pandemic and until September 30, the SEPE advanced the entry of the payment at the beginning of the month, between days 3 and 4.

How long do you have to work to collect unemployment benefits?

In order to collect unemployment, you need to contribute a minimum of 12 months or a year. Once you meet this requirement, the longer you have contributed or worked, the longer you can receive unemployment benefit.

This is the relationship between unemployment time and time worked:

Quote days Unemployment benefit days
from 360 to 539 120 days
from 540 to 719 180 days
from 720 to 899 240 days
from 900 to 1079 300 days
from 1080 to 1259 360 days
from 1260 to 1439 420 days
from 1440 to 1619 480 days
from 1620 to 1799 540 days
from 1800 to 1979 600 days
from 1980 to 2159 660 days
since 2160 720 days

What if you have not contributed a year? you can access unemployment benefit

If you have worked less than a year you will not be able to collect unemployment, but you can apply for the extraordinary unemployment benefit.

This subsidy can be collected if you have worked for at least 3 months and have family dependents and if you have worked more than six months without family dependents.

How much do I have left in unemployment benefit?

To find out how much unemployment you have left, you can use the table above or consult it in this section of the SEPE website.

Remember that once the strike is exhausted you can apply for the extraordinary unemployment benefit if you have family dependents or if you do not have the right to receive other aid.

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Image | Unsplash.com Darius Bashar

Economic concepts, Payroll, economic terms

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