Benefits: changes for 2 million recipients. How will support for the unemployed be calculated?

With the advent of the new year, the system of social benefits and unemployment payments is changing dramatically, affecting 2 million people.

Introduced new criteria for receiving housing, child benefits and minimum guaranteed income benefitsincluding requirements for deposits, real estate and movable property. At the same time, a new unemployment benefit payment model is being developed as a pilot project for 10,000 recipients by the end of the year. This model will be tied to wages, as well as the work and insurance history of the unemployed.

Child benefit

The second and third scales of child benefit are combined, which leads to an increase in the benefit for the third scale from 28 euros per child to 45 euros and 90 euros for the third and subsequent children. Those in the two lowest income brackets will benefit the most, subject to meeting the new asset criteria, including movable and immovable property and deposits. For example, for a family with two children, the cost of real estate should not exceed 210,000 euros, and the car should have an engine capacity of 1600 cubic centimeters.

Unemployment benefits

The new benefit will consist of two parts: fixed and variable (compensatory). The amount of the benefit will vary depending on the length of insurance and employment, as well as the level of salary, and can reach 1,200 euros for unemployed people who have been on the labor market for more than four years. Those with less continuous service will receive a lower amount of 509 euros.

The total annual amount of unemployment benefits will not change, but will be paid in advance, that is, the payment will be higher in the first few months, and less in subsequent months. A possible scenario assumes that in the first months of unemployment the benefit will be 70% of the minimum wage.

The fixed portion of the benefit will be reduced for those who work part-time, on a rotational basis or occasionally. For seasonal workers new criteria and time limits will also be established.

It is possible that the benefit payment period, which currently ranges from 5 to 12 months, can be extended to 24 months, depending on the number of days worked. The €200 benefit paid to long-term unemployed people (more than 12 months) is expected to be combined with the new increased unemployment benefit. Payment of benefits will be combined with the obligation of unemployed people to participate in training programs in order to gain the experience necessary to return to the labor market.

In addition, there will be additional benefits for certain groups of unemployedsuch as Christmas and Easter gifts, benefits for each protected family member and benefits for single-parent families.

Minimum guaranteed income

With the new year, the minimum guaranteed income (MGI) will increase by 16%, from €216 and €54 per child (to €250 and €75 respectively). At the same time there will also be income limits increased. However, target criteria for real estate, movable property and deposits will apply.

There are already property criteria that will apply to other benefits. The declared income cannot exceed 5832 euros, regardless of the number of family members.

The total taxable value of a household's immovable property cannot exceed €90,000 for a single-person household, plus €15,000 for each additional member, up to €150,000.

Housing benefits

The benefit increases from 70 euros to 125 euros and 75 euros, depending on the income scale, with an additional increase of 30% for each child. Today, the benefit is received by persons whose total income does not exceed 7,000 euros for a single-person household, with an increase of 3,500 euros for each additional member. In an incomplete family, an additional 7,000 euros are established for the first minor member, and in families with unprotected children – 7,000 euros for each unprotected child.

Total income cannot exceed 21,000 euros per year, regardless of household composition. Regarding the property criteria, the total taxable value of the property cannot exceed €120,000 for a single-person household, plus €15,000 for each additional member, up to €180,000.

Deposit limits for each type of household the following (including deposits, stocks, bonds, etc.):

• Up to 7,000 euros for a one-person household, increased by 3,500 euros for each additional member. In an incomplete family, an additional 7,000 euros is established for the first minor family member.

• For households with vulnerable children, €7,000 is added for each vulnerable child.

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