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For those who lose their jobs after early September, there will be a phased introduction of earnings-related unemployment insurance, which will reduce income support after a few months of unemployment.
Research Professor Tommy Kellar The National Center for Economic Research (VATT) believes that the decline has been so rapid and so deep that we are very close to a full cut in unemployment benefits.
Kyyrä said the timing of the reforms was not optimal when the economy was tight and unemployment was rising. However, if economic growth picks up next year as expected, reforms including a sharp cut in earnings-related unemployment insurance could bring considerable savings.
– The timing isn’t exactly the best, but it’s not too bad either.
The Unemployment Insurance Act will be amended on Monday to reduce daily benefits by 20% after 40 days of unemployment, or about two months.
Photo: Vesa Moilanen/Lehtikuva
The Unemployment Insurance Act will be amended on the first Monday of September, with income benefits being reduced by 20% after 40 days of unemployment, or about two months. A second additional cut of 5% is hit after 170 days of unemployment, or about eight months.
Therefore, the surgery can be performed as early as late autumn.
Kyyrä said this was a significant undercut for the unemployed, especially since the increase in unemployment insurance for children was cancelled in the spring.
Kyyrä said that although the government’s presentation mentioned that the amount of the daily income benefit would increase, it cannot be said that the income guarantee will actually be reduced a little bit, but we are already close to a cut.
– The first drop of 20% in Ansioturva was two months later, i.e. very fast.
Lead researcher at Labore Merja Khohanen “We are already close to the base benefit when the already small income benefit paid on top of low wages is still being cut,” he said.
– In practice, low-wage earners lose all income protection after just 40 days.
As a result, more people than before may have to rely on income support. This could partly undermine the government’s savings objectives, at least in the short term.
People’s livelihood security is weakening
Both Kyyrä and Kauhanen remind us of the role of earnings-related unemployment insurance as unemployment insurance.
– The reform severely weakened insurance coverage for the unemployed. Kauhanen said that livelihood security linked to income is sought so that income does not suddenly collapse when unemployment occurs.
Keira said that if the government wanted to both encourage the unemployed to find work and save on unemployment insurance, then targeting recipients of income protection would certainly be a better option than the basic daily allowance and labour market support, which this year amounted to 37.21 euros a day.
Unemployment Fund Joint Organization TYJ EvaluatedThe tiering will affect about two-thirds of recipients of income-related daily benefits. A third of the unemployed found work so quickly that the phasing measures did not have time to work.
Applies only to new periods of unemployment
In addition to the completely unemployed, the reform also applies to laid-off part-time workers and self-employed people who receive agreed day benefits. The legal changes do not apply to unemployed people who started receiving income-related benefits before September 2.
The average daily income is TYJ go through Last year it amounted to €1,690 per month. The phased measures that are now coming into force will first reduce the amount to €1,350 and, as unemployment continues, to €1,270.
It is becoming increasingly difficult to obtain preferential services
Resting state
The right to receive income-related unemployment benefits will become more stringent when the working conditions for being entitled to income benefits are extended from six months to one year. Thus, you must have worked for a year to be entitled to income benefits when you become unemployed. In addition, you must have been a member of an unemployment fund during your working period.
This work does not have to be continuous. It can include the first two years and four months of paid employment, as well as longer periods of paid employment based on study, illness or completion of military service.
Working conditions months are accumulated when the required amount of EUR is paid during the month. This amount for the year is at least EUR 930 per month.
From now on, wage subsidy work will in principle no longer be subject to cumulative working conditions.
Depending on the employee’s work experience and age, earnings-related unemployment insurance is available for maximum periods of 300, 400 and 500 days.
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