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Changes to Unemployment Insurance: Increased Benefits and Accessible Solidarity Fund

Unemployment Insurance – known as the Unemployment Bonus – will have changes in its implementation after the approval of a bill by the Chamber of Deputies that improves and strengthens it.

This benefit seeks to help contract workers who lost their jobs and through payments in installments of the money accumulated from contributions paid every month to the Unemployment Fund Administrator (AFC).

Not only does the insurance consist of monetary income, there is also the possibility of accessing the Solidarity Unemployment Fund (FSC), assistance in job search and training.

Changes

The bill seeks to increase benefits and flexibility in access to them, especially in cases of disasters or health alerts.

Replacement rates

Benefit replacement rates will see an increase provided through the Individual Unemployment Account (CIC) of 55% and 60%.

These rates are the relationship with the proportion of the salary that an unemployed person receives through their Unemployment Insurance, compared to the salary that the employee previously received.

An increase in the replacement rate means a greater percentage of the previous salary that the worker will receive during his period of unemployment.

Expansion of the Solidarity Unemployment Fund

The FCS will be in charge of guaranteeing minimum benefits to workers who do not have sufficient funds in their individual unemployment account at the time of losing their job. The new law seeks to increase replacement rates, as well as the minimum and maximum limits of benefits.

In addition, the requirements to access these benefits will be reduced, reducing the number of contributions necessary to have access to the benefits financed by the individual unemployment account (CIC) from 12 to 10, in the case of workers with indefinite contracts or employees. domestic workers, and from 6 to 5, in the case of workers with fixed-term contracts.

Likewise, the number of contributions necessary to have access to benefits supported by the FCS will be reduced, going from 12 to 10 in the last 24 months prior to the termination of the employment relationship.

Obtaining requirements

Specific requirements and benefits will be established for workers who lose their job in exceptional circumstances, such as:

  • Areas declared in a state of constitutional exception due to public calamity.
  • Regions affected by natural disasters according to Law 16,282.
  • When there is a health emergency that leads to the suspension of activities.

Tax contribution

The Government will provide funds to guarantee the solidity of the Solidarity Unemployment Fund, which will be activated when the value of the FCS decreases to a level established by legislation.

2023-10-26 16:15:32
#Review #Unemployment #Insurance

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