Partial Unemployment Benefits While Working Part Time

Unemployed after working full time for more than 360 days, so entitled to unemployment benefits (paro) but you have the possibility to work part time on a new contract – would it be possible to supplement your income with partial paro?

There are two options: the first would be to suspend your paro to resume full payment when your part time contract ends, if the work contract is for less than a year. If the work contract is for longer than 1 year, you will have the choice to either resume your ´old´ paro payment, or have a new one calculated, taking into account the entitlement you built up with the part time contract.

The second option is to have your paro paid out partially, deducting the hours of your new work contract, and to be resumed 100% once the contract ends. It´s important to realise that it´s not the amount of paro you receive that will be deducted from your total entitlement, but the duration. So, let´s say your work history entitles you to 8 months of paro, you received 2 months full time paro until the new part time contract started (3 months contract) – 3 months part time paro – that leaves you with an entitlement of 3 months full time paro to receive once the part time contract has ended.

The same options are available for those on unemployment ´subsidio´ but you have to realise there´s a maximum income limit to qualify for this subsidio, so if you exceed that with your part time job, you might lose the entitlement altogether or risk fines if you don´t inform the employment agency to stop the payments. Moreover, if the new partial contract, plus your previous work history now amounts to more than 360 days worked, you would now qualify for paro instead of subsidio, so you would have to put in a new application when the part time contract ends. But the part time contract might mean your entitlement will be to a lower amount than you received previously for full time subsidio.

In all cases: you have to inform INEM/SEPE that you are going to work again, and discuss your options.

Link to SEPE website with info for those on ERTE as well.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.