Surely we have heard many cases of elderly people who lose the job they have held all their lives and have a terrible time finding a new job due to their age. Well, this is over for many Madrid residents who find themselves in this situation. The Community of Madrid has a program of aid prior to ordinary retirement aimed at workers who have lost their jobs in business restructuring processes (such as an ERE or an ERTE). These aid seek to guarantee income until the worker can access the pension.
Applications must be processed through the electronic headquarters of the Community of Madrid, in the scholarships and aid sectionwhere you can access the form and consult the required requirements. Here it is also possible to see all the documentation required to request this aid.
This is a monthly financial aid that also includes Social Security contributions during the period of receipt, which allows the worker to continue generating rights for their future pension.
Amount of aid
The initial amount is 75% of the regulatory base, calculated from the worker’s contributions in the months prior to dismissal.
This aid can be maintained for a maximum of four years or until the beneficiary reaches ordinary retirement age, being updated each year according to the revaluation of pensions.
Requirements to access pre-retirement aid
To benefit from this aid it is necessary to have been dismissed for objective reasons or in a collective dismissal, to be registered as a job seeker and to meet the required contribution requirements.
Furthermore, the worker must be a few years away from retirement age and not be receiving other incompatible benefits.
How aid is financed
The cost of this aid is shared between the company and the Administration. Specifically, 60% is borne by the company and the remaining 40% is financed by the Community of Madrid.
A way to protect older workers
These aids allow those people who are at the end of their working life to see their income reduced to the point of being unable to support themselves. Therefore, this economic support provides the necessary economic stability to those who have been affected by business restructuring processes.