Unemployment benefits in Europe

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

Unemployment benefit is the material support by the state of the able-bodied population, temporarily unemployed, but engaged in an effective job search and ready to start it. Historically, two types of income protection for the unemployed have been formed in the world - these are social insurance benefits for unemployment and cash (or other) assistance to the unemployed.

What is unemployment benefit?

Unemployment benefit - state support in the form of regular cash payments to those citizens who are recognized as unemployed for reasons prescribed by law. It is paid depending on the amount of wages received before dismissal, work experience and other conditions. Unemployment benefit in Europe is a social support that temporarily replaces the main regular sources of income. At the legislative level, the conditions and norms of benefits paid under social programs specific to each country are regulated. Support Programunemployed also includes assistance in finding a job, advanced training or obtaining a new speci alty for the period of job search.

Psychological aspect of social benefits

Sociologists note the psychological degree of demotivation of benefits to job search. Based on the data of specialists, it is obvious that with the loss of only a small part of income after dismissal, the unemployed delays the search for a new job until the end of the benefit period.

Another disincentive is the often high unemployment benefit in Europe, which encourages the unemployed to demand the same high level of wages in a new job without upgrading their qualifications, which makes it much more difficult to find a job. A significant disincentive effect can be seen in some EU countries, where benefits are calculated either in stable amounts or as a percentage of the average wage.

The historical formation of unemployment benefits

Benefits in the form of life support for people in need of social assistance, who are in distress due to disability, old age, the maintenance of young children without a breadwinner - have been common since ancient times, although they were not formalized. The complication of socio-economic ties added other causes of unemployment and poverty, giving rise to the need for state support. Although for a long time the disabled part of the population was kept inwithin family communities. During the development of feudalism, assistance was provided in kind or by placement in almshouses, contempt homes, orphanages, which were maintained at the expense of charity under the care of the clergy.

Workers who temporarily lost their ability to work were supported by shop union mutual assistance. The period of the collapse of the community organization and the use of hired labor as a commodity forced the state to develop an integral system of social protection for workers, with the imposition of part of the benefits on employers, especially in cases of industrial injuries.

Germany was one of the first countries to create an insurance system for employees, providing workers with material benefits in all cases of loss of earnings: illness, accidents, disability, old age. Following the example of Germany, other countries in Europe began to adopt similar social protection laws for employees.

Who is eligible?

Unemployment benefits in Europe are paid to a resident of the country recognized as unemployed by the social employment service. The right to receive benefits and the actual payments are made after he receives the status of unemployed. It is not an absolute basis for recognition of the status of unemployed if the applicant is not engaged in any work activity. To obtain the required status, it is necessary to present the documents required by law in order to avoid mistakes with the category of the unemployed who do not want to work, although they have all the indicators of working capacity.

There is a generally accepted definition of being unemployed as a socio-economic phenomenon - when a person who wants to work cannot find a job at a standard wage rate.

Base benefit period

Each state system has its own regulatory aspects of the program to support the unemployed. The unemployed person must meet the necessary conditions for receiving unemployment benefits in Europe, as well as the conditions for the period during which he receives benefits. The time allocated for the paid period when the applicant is looking for a job or undergoing retraining is called the base. This period varies in each country from 4 months to a year. Usually, within the base period, applicants find a new job or re-settle in their original job. 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 unemployment benefit periods in some European countries.

Payout conditions

In European countries, not everyone left without a job can count on regular social benefits. It is necessary to provide information about the length of service, the amount of earnings for a certain working period. It is also important for the relevant services to know whether the unemployed made monthly contributions to the social fund.

Manual forUnemployment in Europe is on average paid for about 2 years with simultaneous offers of new vacancies, which are selected by the unemployed employment service. If the vacancies are rejected 3 times, the payments stop. But there are exceptions for the periods of paid unemployment benefits in European countries. For example, in the UK, the maximum payment period is 6 months, and after the 13th week, the applicant must accept any offered vacancy.

Italy is also distinguished by the duration of unemployment benefits - only 8 months. In addition, an important aspect for calculating the amount of unemployment benefits is the area in which a person worked before losing his job.

In Belgium, on the contrary, the period of payments is not limited, but only decreases over time, the size of the cash payments themselves.

France. Payment terms

Unemployment benefit in Europe in France depends on the salary of the applicant and regular membership fees, which are paid together with the employer (2.4% - employee and 4% - employer) for 4 months of work out of 18, which preceded the termination of the work contract.

Unemployment benefits are about 60% of the salary received before dismissal. In the country, senior positions are paid much higher than their subordinates, so the necessary "ceiling" for unemployment payments was put up - 6161 euros per month. The term for receiving unemployment benefits varies from 4 months to 2 years. For employees over the age of 50extended to three years. Despite the complex thought-out system of insurance payments, there are a lot of unemployed people in the country.

Germany. There are rules here

There are two types of unemployment benefits in Germany. The first type of benefit is en titled to receive only those citizens who have timely notified the state authorities of the 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 has worked for at least a year before the dismissal, with employment of at least 15 hours a week. For the first 1.5 years, the benefit payment is 60% of the average salary.

If there are children in the family, the allowance will be 67% of earnings. After one and a half years of payments, in case of maintaining the status of unemployed, the amount of the benefit 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.

U. S. benefit conditions

In the United States, unemployment benefits are significantly below the average level of unemployment benefits in Europe and do not allow for satisfying living conditions for an American. The amount of the benefit is only 50% of the salary until the moment of dismissal. Benefits are paid weekly. Their amount varies from 60 to 250 dollars.

Unemployment status provides some social benefits: tax deductions forfor each minor dependent in the family, student meals and certain foods.

In some states, benefits are not available to everyone who has the required unemployment status. Much depends on the size of the applicant's earnings, which must correspond to his qualifications. In Connecticut, benefits are provided only to unemployed people who received a salary of at least $600 before they were fired. In Maine, the minimum wage must not be less than $3,300. Such harsh conditions are common only in some states, but the norm is the norm of hours worked until the moment of dismissal - not less than 68 hours.

Unemployment benefits for refugees in Europe

In the past few years, European countries, especially Germany, have been flooded with refugees from countries with an unfavorable economic situation. Refugees receive subsidies and support from the state, including monetary compensation for unemployment, but on the condition of integrating them 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 salary 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 six months, inFinland - in 3 months.

Unemployment benefits in different EU countries

The determining factor for the size of the benefit is the salary before dismissal: the higher the salary, the higher the benefit. Typically, the unemployment rate is measured by the youth rate, which is usually higher, and the long-term rate, which includes the working-age population with work experience.

The table shows the average figures of how much the unemployed are paid in Europe. The average percentage of unemployed among the able-bodied population in the country is also indicated. Unemployment benefits vary slightly from year to year, depending on the economic and political situation in the state.

Country	Benefit/month (€)	Due date	Unemployment rate (%)
UK	381	1 year	2, 40
Italy	931	240 days	13, 40
Spain	1397	4 months-2 years	21, 20
Denmark	2295 (90% of last salary)	Up to 2 years	4, 90
Belgium	1541 (60% of last salary)		3, 45
Austria	4020 (55% of the national average salary)	Under 9 years old	9, 00
Netherlands	144, 75 per day	3 to 38 months	6, 50
Switzerland	6986	200 to 520 days	3, 60

Reason for denial of benefits

An unemployed person may lose the right to receive unemployment benefits in Europe and the world in the following cases:

• Firing him of his own free will.
• Dismissed due to inappropriate behavior or participation in unlawful public demonstrations. Thus, employees are disqualified for 4 months in Germany, Finland, Belgium, Austria.
• If the applicant refused the recommended profile job three times.
• Failure to appear at the social employment authorities at the set time to confirm the status of the unemployed.
• In cases where payments are provided fraudulently, that is, with the help of nominees.