June 19, 2024

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Unemployment benefit changes and increases by 250 euros

Unemployment benefit changes and increases by 250 euros

It is expected to be introduced in the summer Parliament The legal text stipulates a relative increase in Unemployment benefit Which will be linked to working life and will in any case be increased by 250 euros compared to the current life, but its duration will also be extended.

The Labor Minister, who had accepted a set of three proposals to distribute the allowance more fairly, reportedly came up with the new structure of the allowance and its separation from the minimum wage. Today, unemployment benefit is equivalent to 55% of the minimum wage (479 euros) and increases accordingly.

Now the benefit will depend on the average real wage of workers before they find themselves in a state of unemployment and will range as a percentage of the wage from 55% to 70%. In the first months, 70% of the salary will be disbursed, and gradually – every four months – it will be reduced to 65%, 60%, and 55%.

The plan includes a maximum of €1,200, which will not exceed the allowance. At the same time, it will not be able to “fall” below 479 euros, which is the amount it is today and corresponds to 55% of the minimum wage. The support amount will be fixed for everyone and linked to the minimum wage.

The duration of the allowance is also extended, which can be up to 24 months. Today, unemployment benefits are granted for a period of between 5 and 12 months, depending on the days worked by the beneficiaries. The eligibility period depends on the working and insurance life of the insured.

At the same time, it will be determined that the supported unemployed will be required to join a training program, in order to gain the experience they need to be employed. During training, he receives a training allowance, not an unemployment allowance.

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The government plan also includes:

  • Changes to standards for the minimum number of work days required to receive unemployment benefits for recurring seasonal workers.
  • Combining unemployment benefits with training for the unemployed, in order to reintegrate them into the labor market as quickly as possible. This is because it requires merging the allowance and long-term unemployment allowance.

Reciprocity in unemployment benefits

The plan will be implemented in the first phase as an experiment, as it is our country’s commitment to the Recovery Fund that finances the program, and according to Labor Minister Domna Michaelidou, the basic philosophy of the new model is reciprocity in granting unemployment benefits.

The necessary condition for obtaining the allowance in relation to the above is that the unemployed person must have been working continuously for 5-6 years. The allowance will be set so that those with more years in the labor market will receive a higher amount – more beneficial – but also according to the contributions they have paid. Therefore, a 10-year-old with a salary of €850 will receive an additional compensation amount, but less than a 20-year-old with a salary of €1,500. Both would receive a lump sum as allowance and a “reciprocity bonus” not exceeding the minimum wage, as this would act as a strong disincentive to find work.

That is, the amount of unemployment benefit will depend on the years of insurance and stay in work and will cover the first quarter or five months of unemployment at a rate of 70% to 75% of the average salary for the last three years. Thus, for the first five months an employee with an average salary of €1,200 would receive around €850 instead of €479, which is the equivalent today. In this case, the salary share will last for 3-5 months. Another will be fired with an average salary of €1,000 for three years, and the allowance will move to €750.

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According to reliable information, the allowance will be double for the first period of trial application. In Attica and in the regions to be selected, they will be linked to salaries, so that their performance can be evaluated, and in the rest of the country, the current allowance will continue to be granted.

However, the increased allowance will be combined with training for the unemployed, in order to reintegrate them into the labor market as soon as possible. Today, unemployment benefits are granted for a period of between 5 and 12 months, depending on the days worked by the beneficiaries. The subsidy amount is fixed for everyone (€479) and is based on the minimum wage. Only a small portion of the unemployed receive this aid, amounting to only 10% of the registered unemployed.

Merge allowances

Changes to the long-term unemployment benefit (€200), which has practically become almost inactive due to income criteria, are also being considered. The benefit will be combined with unemployment benefits and gainful employment, mainly for unemployed people who have worked for many years and paid a lot of money.

The changes approved by the committee that recommended the issue include reducing wage-related allowances for daily unemployment benefits, which will not be reduced for fixed-term contracts and part-time workers. These changes are being promoted within the framework of the Recovery and Resilience Fund, where resources of more than €100 million have been secured to pilot a program to readjust unemployment benefits.

An unemployed person who had a part-time job with a salary of less than 418 euros receives an unemployment benefit of 359.25 euros. If he has a wife and three children (i.e. 4 protected members) he is entitled to a 40% increase and the allowance will be 503 euros. An unemployed person who works shift work (two to three times a week) with a salary of less than €209 will receive an unemployment benefit of €239.50. Support in the seasonal category lasts for 80 days.

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For the full-time or part-time unemployed, the unemployment allowance is €239.50 as of the current month. In addition to the amounts of the allowances mentioned above, the allowances to which the unemployed are entitled are added according to the number of their protected family members, as long as they are not working. That is, the unemployed person gets 479 euros. If he has a spouse and two children as protected members (which he declares in his tax return), he is entitled to the allowance at an additional 30% (from 10% per member) and the final amount he will receive is €622.7.

If you do not choose the 80-day support, the duration of the support follows the regular unemployed period.

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