Unemployment benefits under pressure: proposals to cut them are causing a stir!

Unemployment benefits under pressure: proposals to cut them are causing a stir!

A current proposal from Institute of Economics provides for a possible standardization of the duration of receipt of unemployment benefits. The employer president Ingo Dulger emphasizes that long periods of unemployment help no one and that it is necessary to create incentives for a quicker return to the job market. According to the study, this could enable annual savings of up to two billion euros.

The current regulatory framework stipulates that the duration of receipt of unemployment benefits increases to 15 months from the age of 50. From the age of 55, those affected can receive up to 18 months and from the age of 58 even up to two years. Last year, around 85,000 unemployed people received unemployment benefits for more than twelve months. However, the SPD has already rejected unification, with deputy group leader Schmidt noting that people over 50 often have greater difficulty finding a new job after losing a job.

Requirements and calculation of unemployment benefits

In order to be entitled to unemployment benefits, certain requirements must be met. According to the Employment Agency Applicants must be unemployed, be available for work subject to insurance for at least 15 hours per week and register as job-seekers and unemployed in a timely manner. It is also necessary to fulfill the qualifying period, which usually requires a minimum period of 12 months in the last 30 months.

The amount of unemployment benefit varies and is based on the gross wages of the last 12 months. Wage tax, solidarity surcharge and 20% social security contributions are deducted from this amount, resulting in 60% of the benefit as daily unemployment benefit, or 67% if there are children in the household. The duration of entitlement depends on the length of employment subject to compulsory insurance and the age at the time of application. For unemployed people under 50, the maximum benefit period is 12 months, provided they were previously insured for 24 months.

Regulations for temporary employment

In the case of frequent temporary employment, the qualifying period can be shortened to 6 months, provided certain requirements are met. This means that the duration of the claim is also reduced. An example calculation shows that 8 months of compulsory insurance can correspond to a claim period of 4 months for unemployment benefit.

The debate about the duration of receipt and financial assistance in the area of ​​unemployment benefits remains exciting. Experts and politicians agree that reforms are needed to meet the needs of the unemployed, especially the older generation.