UPDATE 2-Spain to extend COVID furlough scheme to Jan -sources

(Adds new measures)

By Belén Carreño and Inti Landauro

MADRID, Sept 29 (Reuters) - Spain is due on Tuesday to extend a scheme supporting hundreds of thousands of workers furloughed because of the COVID-19 pandemic, a labour ministry source said.

With Spain among the European countries hardest hit by the new wave of coronavirus cases, the government has reached agreement with unions and business leaders on extending the ERTE scheme until Jan. 31, the source told Reuters.

ERTE, from which millions of workers in Spain have benefited since mid-March, was due to expire on Wednesday.

Authorities introduced it at the same time as they imposed one of Europe's strictest coronavirus lockdowns, which triggered the country's worst recession on record.

As curbs were lifted in mid June, many people returned to their jobs. But as of August more than 800,000 were still getting ERTE benefits.

The move, due to be ratified at the weekly cabinet meeting, is part of a broader social protection package that also includes prolonging a ban on evicting vulnerable tenants, another government source said.

This applies to several categories of tenants, including those who have lost their jobs permanently or are on a furlough scheme.

The package will also include new benefits for self-employed people who have lost their income.

Spain has recorded almost 750,000 coronavirus cases since the epidemic began, with a death toll exceeding 31,000. (Reporting by Belen Carreno and Inti Landauro; Editing by Ingrid Melander and John Stonestreet)