Unemployment benefit refers to the state financial support of the able-bodied population, temporarily unemployed, but engaged in an effective job search and ready to start it. Historically, two types of unemployment income protection have been formed in the world - social unemployment insurance benefits and monetary (or other) assistance to the unemployed.
What is unemployment benefit?
Unemployment benefits - state support in the form of regular cash payments to those citizens who are recognized as unemployed for the reasons provided by law. It is paid depending on the amount received before the dismissal of wages, seniority and other conditions. Unemployment benefits in Europe - social support, temporarily replacing the main regular sources of income. At the legislative level, the conditions and norms of paid benefits are regulated within the framework of social programs specific for each country individually. The unemployment support program also includes assistance in finding a job, advanced training or getting a new specialty for the period of job search.
The psychological aspect of social benefits
Sociologists noted the psychological degree of demotivation benefits for job search. Based on the data of specialists, it is obvious that if only a small part of the income is lost after leaving the job, the unemployed delays the search for a new job until the end of the benefit payment period.
Another disincentive factor is often the high unemployment benefit in Europe, which encourages the unemployed to demand the same high level of salary in a new job, without increasing their qualifications, which makes it difficult to find a job. Significant discouraging effect is observed in some countries of the European Union, where benefits are calculated either in stable values or as a percentage of the average wage.
The historical formation of unemployment benefits
Benefits in the form of support for the livelihoods of people in need of social assistance who have been in distress due to disability, old age, and the maintenance of young children without a breadwinner have been common since ancient times, although they were not formally issued. The increasing complexity of socio-economic ties also added other causes of unemployment and poverty, creating the need for state support. Although for a long time the disabled part of the population was kept within family communities. During the development of feudalism, assistance was provided in kind or by placement in almshouses, houses of contempt, orphanages, which were maintained through charity under the care of the clergy.
Workers who temporarily lost their ability to work were supported by the union's mutual assistance. The period of the collapse of the community organization and the use of hired labor as a commodity one forced the state to develop an integrated system of social protection for workers, with the assignment of part of benefits to employers, especially in cases of industrial injuries.
Germany was one of the first countries to create a system of insurance for employees that provides workers with material benefits in all foreseen cases of loss of earnings: illness, accidents, disability, old age. Following the example of Germany, other European countries began to adopt similar social protection laws for employees.
Who gets the right to payouts?
Unemployment benefits in Europe are paid to a resident of a country recognized as unemployed by the social employment service. The right to receive benefits and actual payments are made after receiving unemployment status. It is not an absolute basis for recognizing the status of unemployed if the applicant is not engaged in any labor activity. In order to obtain the necessary status, it is necessary to present documents prescribed by law in order to avoid mistakes with the category of unemployed who do not want to work, although they have all the indicators of working capacity.
There is a generally accepted definition of the status of unemployed as a socio-economic phenomenon - when a person who wants to work cannot find a job at a standard wage rate.
Benefit pay base period
Each state system has its own regulatory aspects for the unemployment support program. An unemployed person must meet the necessary conditions for receiving unemployment benefits in Europe, as well as the conditions of the period during which he receives benefits. The time that is allotted for the paid period, when the applicant seeks work, or undergoes retraining, is called base. This period varies in each country from 4 months to a year. Typically, as part of the base period, applicants find a new job or re-settle in the same place. If the unemployed continues to confirm his status as unemployed, his payments are reduced and the period itself is extended, depending on age and social status, up to 2 years. Although there are longer periods of unemployment benefits in some European countries.
Payment Terms
In Europe, not everyone who is unemployed can rely on regular social benefits. It is necessary to provide information on seniority, the amount of earnings for a certain labor period. It is also important for the relevant services to know whether the unemployed made monthly contributions to the social fund.
Unemployment benefits in Europe are paid on average for about 2 years with simultaneous offers of new vacancies that are selected by the unemployed employment service. If the vacancies are rejected 3 times - payments stop. But there are exceptions to the periods of unemployment benefits paid in Europe. For example, in the UK, the maximum payout period is 6 months, and after the 13th week the applicant must accept any vacancy offered.
Italy also has a term of unemployment benefits of only 8 months. In addition, an important aspect for calculating the size of unemployment benefits is the area in which a person worked before losing his job.
In Belgium, on the contrary, the payment term is not limited, but only the size of the cash payments themselves decreases over time.
France. Payment Terms
The unemployment benefit in Europe in France depends on the applicant's salary and regular membership dues paid together with the employer (2.4% - the employee and 4% - the employer) during the 4 months out of 18 that preceded the moment of termination of the worker the contract.
The amount of unemployment benefits is about 60% of the salary received before dismissal. In the country, leadership positions are paid much higher than their subordinates, so the necessary “ceiling” for unemployment benefits was set at 6161 euros per month. The term for receiving unemployment benefits varies from 4 months to 2 years. For those dismissed from the age of 50 years, the term is extended to three years. Despite the complex, well-thought-out system of insurance payments, there are a lot of unemployed in the country.
Germany. Here are your rules
There are two types of unemployment benefits in Germany. The first type of allowance is only entitled to those citizens who promptly notified state bodies of a possible loss of work, for example, working under a fixed-term employment contract. The second type of unemployment benefit is paid by the state, provided that the applicant worked for at least a year before leaving, with employment not less than 15 hours a week. The first 1.5 years the size of benefits payments is 60% of the average salary.
If the family has children, then the allowance will be 67% of earnings. After one and a half years of payments, in the case of maintaining the status of unemployed, the amount of benefits is reduced to 400 euros per month. The duration of payments does not exceed 24 months.
The maximum amount of monthly social benefits for the unemployed is 2, 215 euros in West Germany and about 2, 000 euros in East Germany.
US Benefit Terms
In the United States, unemployment benefits are significantly lower than the average unemployment benefits in Europe and do not make it possible to provide American living conditions. The amount of benefits is only 50% of the salary until the time of dismissal. Benefits are paid weekly. Their amount varies from 60 to 250 dollars.
The unemployed status provides some social benefits: tax deductions for each minor dependent in the family, preferential meals for the student and some products.
In some states, the benefit is not intended for everyone who has the required unemployment status. Much depends on the size of the petitioner's earnings, which must correspond to his qualifications. In Connecticut, benefits are only provided to unemployed people who have received a salary of at least $ 600 before leaving. In Maine, the minimum wage should not be lower than $ 3, 300. Such harsh conditions are common only in some states, but the general rule is the standard hours worked until the time of dismissal - at least 68 hours.
Refugee Unemployment Benefit in Europe
In the past few years, a flood of refugees from countries with an unfavorable economic situation has poured into Europe, especially Germany. Refugees receive subsidies and support from the state, including monetary compensation for unemployment, but on the condition of their integration into the society in which they find themselves.
To ensure unemployment benefits, refugees must learn the language of the country in which they receive refugee status, find housing, and also work. The allowance is paid at the rate of 40-60% of the average wage in the country. If the refugee does not want to fulfill the requirements for receiving unemployment benefits, it remains only to live on social assistance. Refugees receive the right to work after a certain time from obtaining refugee status. In particular, in Germany - in a year, in Belgium, Italy - in half a year, in Finland - in 3 months.
Unemployment benefits in different EU countries
The determining factor for the size of the benefit is the salary before leaving: the higher the salary, the higher the benefit. Typically, the unemployment rate is observed in the youth indicator, which is usually higher, and long-term, which includes the able-bodied population with work experience.
The table shows the average figures of how much unemployed are paid in Europe. The average percentage of unemployed among the working population in the country is also indicated. Unemployment benefits vary slightly over the years, depending on the economic and political situation in the state.
|
Country |
Allowance / month (€) |
Term of deductions |
Unemployment rate (%) |
|
United Kingdom |
381 |
1 year |
2.40 |
|
Italy |
931 |
240 days |
13.40 |
|
Spain |
1397 |
4 months-2 years |
21, 20 |
|
Denmark |
2295 (90% of the last salary) |
Up to 2 years |
4.90 |
|
Belgium |
1541 (60% of the last salary) |
3.45 |
|
|
Austria |
4020 (55% of the average salary in the country) |
Up to 9 years |
9.00 |
|
Netherlands |
144, 75 per day |
3 to 38 months |
6.50 |
|
Switzerland |
6986 |
200 to 520 days |
3.60 |
