Radical changes in the way unemployment benefits are provided, tied to work history and insurance coverage, are being promoted by the Ministry of Labor with the help of a new bill.
The central idea of the proposed regulation is increasing unemployment benefits and linking them to wages, received by the unemployed in the last years of his work. According to the information, the benefit will be linked to 70% or even 75% of the minimum wage.
Thus, if the basic salary increases to €820 from April 2024, unemployment benefit could reach 650 euros. Let us remind you that with On April 1, 2023, unemployment benefits are set at 479 euros. What will be minimum limitestablished for the provision of this benefit, below which the amount will not fall.
Today, unemployment benefits are paid for a period of 5 to 12 months, depending on the number of days of work that the beneficiaries have worked.
Currently, the subsidy amount is fixed for everyone (479 euros). In particular, changes are being promoted regarding unemployment benefits, which will depend on the amount of wages that the citizen received at work (in the period preceding the period of unemployment) and will continue to be paid after 12 months. The circuit is actually being considered payment of unemployment benefits for more than 12 months, but with specific criteria and conditions.
In particular, presumably payment of unemployment benefits will exceed 12 months and reach 18. Ministry of Labor together with DYPA is exploring options for paying benefits after 12 months.
DYPA officials will review, at the end of the 12-month unemployment benefit period, the conditions that qualify to continue receiving the subsidy. The amount can even exceed 200 euros per month, depending on the years that preceded unemployment and work experience.
According to information unemployment benefit is still being studied as a “sliding” amount, which in the first months after dismissal can reach up to 1,300 euros (for unemployed people who have worked in the labor market for more than 4 years).
And those with fewer years will receive 479 euros. The more years an unemployed person has spent on the labor market, the higher the benefit he will receive.. In addition, the total annual amount of unemployment benefits, based on the minimum wage, will not increase simultaneously, but will be distributed as follows: most of the benefit – in the first months and less – in subsequent months.
The changes will be combined with piloting the conversion of unemployment benefit into labor benefit through new training programs, so that unemployed people can participate in the search for new work and return to the labor market as quickly as possible, as much as possible by acquiring additional resources and skills.
For this reason, it is expected that the unemployed person will be required to be available for training (retraining) and return to the labor market as soon as possible.
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