The government wants to reduce the maximum duration of unemployment benefits to one year. This means that if you're dismissed, you'll be entitled to wage-related benefits for a shorter period.
In addition, it is proposed to reduce the maximum daily wage by 20%. This maximum determines the upper limit of unemployment benefits.
The government also proposes to significantly limit the accrual rate. Currently, for each year worked, you accrue one month of unemployment benefits during the first 10 years. If the government has its way, this will be halved to half a month per year worked. This means that after ten years of employment, you will only be able to rely on unemployment benefits for five months instead of 10, otherwise you will have to rely on social assistance.
In addition, the eligibility requirement is being adjusted, requiring you to have worked longer to even qualify for the short-term unemployment benefit of three months. Both of these changes will have significant consequences, especially for young people.
The benefit in the first two months of unemployment should be increased from 75% to 80%.
Sample calculation (indicative):
- Current maximum daily wage ≈ € 6.600 gross per month
- Unemployment benefit first two months: 80% in the first two months → approximately € 5280 gross per month
- Unemployment benefits after 2 months (70%) → € 4620 gross per month
If the maximum daily wage is reduced by 20%:
- New maximum ≈ € 5.280 gross per month
- Unemployment benefit first two months (80%) → approx. € 3.960 gross per month
- Unemployment benefits after two months (70%): € 3696 gross per month
That's a difference of almost €1.000 gross per month at maximum benefit.
For middle and higher incomes, this could mean a significant drop in income.
