The government is making a radical change to the unemployment benefit, which will be piloted within this year.
The new unemployment benefit will be paid to those who become unemployed after the changes are introduced and not to those who are already unemployed.
Final decisions will be made in the autumn and the new unemployment benefit will be piloted to 10,000 unemployed people before the end of 2024, followed by universal implementation.
The Minister of Labor and Social Security, Niki Kerameos, speaking a few days ago on the radio of the Parapolitics, announced the implementation of a fairer and more rewarding unemployment benefit system.
As Mrs. Kerameos pointed out, the goal of the interventions that will be made in the system is to create incentives for finding work.
«The idea is that at the beginning of the period of unemployment the benefit is higher, it is front-loaded and then it decreases to give you an incentive to find a job” the minister characteristically noted, explaining that the logic is that the unemployed should receive more at the beginning, in the difficult period when unemployment begins, and then this amount should be reduced in order precisely to push him to find employment.
The unemployment benefit
Today, the unemployment benefit is equal to 55% of the minimum wage.
With the adoption of the new plan, the unemployment allowance for the first 3 months of its payment will be 580 euros and on top of this amount there will be an increase of 10% up to 30%, depending on the amount of wages the unemployed person had when he was working, but also his seniority.
On top of this “basic” amount of the unemployment benefit, a bonus will be paid depending on the length of service and the salary of the dismissed person
Specifically, the amount that will be granted based on today’s minimum wage and will be the same for everyone, will be structured as follows:
- For the first 3 months: 70% of the minimum wage = 580 euros
- For the second quarter: 60% of the minimum wage = 498 euros
- For the 3rd quarter: 55% of the salary = 456 euros
- And for the fourth quarter: 45% of the salary = 373 euros
The total amount on a twelve-month basis remains the same close to 7,000 euros.
- Beyond that, however, there will also be a bonus amount that will be added to the “basic” allowance depending on: the previous service of more than 3 years
- the salary
This will lead to an increase in the final amount that the unemployed person will receive by 10% to 30%.
To this benefit will be added the bonus that will be proportional to the years of insurance and his earnings. The bonus will be collected by those who have many years of insurance (eg more than 20 years), high earnings and at the same time have not yet received any unemployment benefit.
Source: ot.gr
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