What Is The Contributory Benefit And How Is It Processed?

 Do you have doubts about what is the contributory benefit and how is it different from the unemployment benefit? If you are not sure what the contributory benefit is , in this article you will find all the information and the requirements to apply for it.

Tax Benefit: What Is It? And The Unemployment Benefit?

The difference between the contributory benefit and the unemployment benefit has to do with the time contributed before being unemployed, in addition to the family situation.

If when you lose your job you have contributed more than 1 year, you are entitled to receive the contributory benefit , also called unemployment benefit and known as “unemployment”. It is called contributory because the amount to be collected depends on the contribution made previously, that is, on the months contributed.

In addition, to collect the contributory unemployment benefit, the loss of work must be involuntary , that is, you do not receive unemployment if you leave work.

If, on the other hand, you have contributed less than 1 year , you can apply for unemployment benefit . That they grant it to you and its duration depends on the months of contributions and your family situation.

Contributory Benefit: Requirements To Be Met

  • Being registered with Social Security in a scheme that includes unemployment.
  • Be legally unemployed .
  • Have registered as a job seeker and remain as such.
  • Be available to actively seek employment and to accept suitable potential jobs.
  • Have contributed at least 360 days , of the previous 6 years, and that they are benefits not used for previous benefits.
  • Not reaching ordinary retirement age .
  • Not working as a freelancer .
  • Not to collect any Social Security pension incompatible with the work activity.

Contributory Benefit: How Much Will I Collect From Unemployment?

The amount of the contributory unemployment benefit is calculated based on the worker’s regulatory base , which is the daily average of the Social Security contribution base . This is calculated on the last 180 days worked, and overtime is not included.

On the worker’s regulatory basis, the contributory benefit pays a percentage . During the first 6 months 70% and from the 7th month, 50% . The law sets the maximum and minimum amount to be charged as a contributory benefit, also depending on the family situation and dependent children.

There Are Two Types Of Deductions On The Gross Amount Of The Contributory Benefit :

  • Social Security: 4.7% of the regulatory base.
  • Withholding of Personal Income Tax (IRPF), if applicable.

For How Long Can I Collect The Contributory Benefit?

The contributory benefit is collected for a minimum period of 4 months and a maximum of 2 years , according to the contributions accumulated during the last 6 years. As a guide, remember that 1 month of unemployment is charged for every 3 months of contributions .

If you have worked part-time 5 or more days a week, each day worked is considered a paid day , regardless of the working day. If you have worked less than 5 days a week, you must multiply the total number of days by the coefficient 1.4.

How To Request The Contributory Benefit And Deadlines To Do It

  • You must register as a job seeker, and request the benefit within 15 business days following the last day worked.
  • If you have collected annual leave because you have not enjoyed them, these are days in employment and you must process unemployment when your vacation period would end.
  • If you carry out the process after the deadline , you have the right to have the benefit approved from the day after the request, but the days of delay are discounted.

Documentation Necessary To Request The Contributory Benefit

  • Unemployment card
  • Application form
  • Valid identification documents: DNI, NIE or passport, yours and the children who live together or are in your charge, and Family Book.
  • Company certificate, where you have worked in the last 6 months (if the company does not send it electronically to SEPE)
  • Part-time work contracts for the 6 years prior to unemployment.

Now you know what the contributory benefit is .

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