Unemployment benefits|The gradation of earnings security will come into effect in September. It cuts the level of support when unemployment is prolonged.
Merit-related the exceptionally large cut in unemployment insurance will come into effect at the beginning of September.
The so-called phasing means that the support will decrease in the future as unemployment lasts longer. After eight weeks of unemployment, the earnings security is reduced to approximately 80 percent of the original amount. At around eight months, the support is reduced again to 75% of the original amount.
Last year, the gross daily allowance was 1,690 euros per month. As a result of the gradation, this average daily allowance is reduced so that after an eight-week payment period it is 1,350 euros and after an eight-month payment period it is 1,270 euros.
The reform will enter into force in stages. Grading does not apply to earnings security periods that are already in progress. It also does not apply to those starting earnings security periods for which the required weeks of work have been completed before the beginning of September.
The government the goal is to encourage the unemployed to find employment faster and cut public spending. According to the government’s proposal, the gradation of income security will directly reduce expenses by approximately 150 million euros per year.
In addition, the Ministry of Finance estimates that the financial incentives for employment will improve so that employment will improve in the long term by almost 13,000 people. According to the ministry, the improvement in employment would balance the public finances by more than 300 million euros.
In connection with the reform, there will also be requirements related to the length of the work history in order to receive a merit-based pension will be tightened.
Helsingin Sanomat’s indicative calculator shows how tiering affects the level of earnings-related unemployment insurance at different salary levels. In addition to gradation, the calculator takes into account how the increase in the number of self-responsibility days that came into force earlier this year and the removal of child increases affect the level of support.
The calculator shows the gross salary and support. Earnings-related daily allowance is a taxable benefit, so the amount you receive is smaller than in the calculator.
#Unemployment #benefits #historic #cut #earningsrelated #benefits #effect #counter #shows #allowance #decrease
