The activity model for unemployment security was approved in Parliament
The Government proposal on the activity model for unemployment security with waiting days was approved by the Parliament on 19 December 2017. The model will, therefore, enter into force on 1 January 2018. The Government is aiming to make finding employment faster with the reform.
Activity is encouraged by monitoring employment, participation in training and entrepreneurship in periods of 65 payment days. If a jobseeker is not active during the period, the level of benefit is cut by 4.65% over the next period of 65 payment days. The first monitoring period for activity starts at the beginning of 2018 for current jobseekers. The waiting period at the beginning of unemployment is shortened from seven days to five days at the same time.
Activity is monitored by the unemployment fund
The activity of all jobseekers is monitored, with a few exceptions. If, during the 65 benefit payment days, you
- work for at least 18 hours;
- spend five days in employment promotion measures; or
- earn from entrepreneurial activity in total at least 23% of the income required to fulfil the entrepreneur’s employment condition (approx. EUR 240 in 2017),
the activity requirement is met and the level of benefit remains the same for the next period of 65 payment days. If a jobseeker is not active, the level of benefit is cut by 4.65% for the next 65 payment days. These periods succeed each other so that activity is constantly monitored. The maximum decrease to the level of benefit is always 4.65%. The review period starts from the beginning when the employment condition is fulfilled or the benefit could not be paid at all due to finding employment. At the same time, the benefit returns to the normal level.
The activity requirement does not apply in all situations
No activity is required when a jobseeker is claiming a benefit granted based on incapacity for work or disability, acts as an informal or family carer, or is waiting for a disability pension decision from a pension company. In these situations, activity is also not monitored. The normal amount of benefit is paid when the applicant is not within the scope of monitoring.
Those who have been laid off are within the scope of activity monitoring only if the full-time temporary lay-off has lasted continuously for at least 65 days or the applicant has been laid off with shortened working days and is claiming an adjusted benefit. Activity is not required for a temporary lay-off period of 64 days or less.
Applying for unemployment benefit and activity requirement
The unemployment fund monitors the fulfilment of the activity requirement based on application data over a period of 65 payment days while also monitoring the accumulation of the employment condition. There is no activity monitoring for those outside the activity requirement.
The social benefits and pensions paid out and applied for are asked about in connection with the application. The unemployment fund must also be notified of informal or family care. Remember to also report any changes in benefits to the unemployment fund.
The Council of the Industrial Union took a stand on the activity model at its meeting on 19 December 2017. Read the articles on this topic at the Industrial Union’s website: