Unemployment benefit: who will receive up to 1200 euros

Changes to unemployment benefits are high on the new Labor Minister's agenda and will be piloted in the first phase.

The planned activities have been introduced into the Recovery Fund, and after pilot implementation and study of the results, it will be possible to create a unified issuing system unemployment benefits. Two main factors are expected to determine the new unemployment benefits: salary and experience. The plan that the Ministry of Labor is working on, without fixing all the details, is to initially disconnect benefits from the minimum wage (minimum estimated wage).

Today unemployment benefits are 55% of the minimum wage. Now the benefit will be tied to the employee's last salary for the last 3 years and will be rolling.

The main conditionthe thing that needs to be done is that unemployed person is actively looking for work or participating in training programs. One consideration is new benefit, the amount of which varies from 55% to 70% of the former employee’s salary. In the first months, 70% of the salary will be paid so that the “new” unemployed does not suddenly find himself in new conditions after dismissal, and the amount will gradually be reduced.

Moreover she will reduced to 65%, 60% and 55%, so that the unemployed person has an incentive to quickly return to the labor marketwherein the maximum ceiling will be 1200 euros, as well as a lower one in the amount of the current unemployment benefit, i.e. 509 euros.

Life insurance
Another parameter that is included in the bonus amount table is the employee’s working time. In practice, this means more years of work and therefore a higher benefit. The amount will be scaled so that those who have worked in the labor market longer and pay contributions will receive accordingly more.

Therefore, someone who has 10 years and a salary of 1000 will receive a lesser amount than someone who has the same salary but 20 years of work. That is, the amount of unemployment benefits will also depend on the length of insurance coverage.

Changes for seasonal workers
Recently, the head of the Prime Minister's economic department said at the TMEDE conference that seasonal surcharges act as a deterrent and that changes need to be made. In the scenarios that the Ministry of Labor is considering (although a final decision has not yet been made), the benefit should be in advance. Today, the subsidy for seasonal workers lasts 80 days, that is, 3 months. The benefit amount is the same as regular unemployment benefit, i.e. it is currently 510 euros per month.

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