By Vangelis Dourakis

The new “architecture” of the unemployment benefit brings abolition of the long-term unemployment benefit. The new “model” also tightens the conditions for granting the regular allowance, as from the pandemic until today, 5 months of work (125 days) was enough for someone to receive it. Now, 7 months of work or 175 days of insurance in the last 14 months will be required. What makes the difference, however, is the amount of the “new” allowance, as it will reach up to 1,247.45 euros.

However, in order for an unemployed person to receive the higher amount, they must meet certain conditions, given that the “nature” of the allowance is now changing from horizontal to remunerative so that the unemployed receive an additional amount depending on their years of work and earnings.

What will be the new unemployment benefit architecture?

In particular, the maximum duration of the allowance will be up to 24 months, as the regular allowance is merged with the long-term unemployed allowance.

The maximum duration of the subsidy will therefore reach up to two years, following an individualized approach to the amount of the subsidy.

In the first 12 months, three amounts will be paid, the fixed allowance, and two variable amounts, based on years of work and based on earnings.

In the remaining 12 months, only the fixed amount will be paid.

In the first 12 months that the benefit will have and the seniority and salary bonus will not exceed twice the amount of the fixed benefit for the first quarter.

The fixed allowance for the first quarter is 648.72 euros, so the ceiling for the allowance is 1,297.45 euros (648.72X2=1,297.45)

The two variable amounts will be added to the basic benefit with service of 4 years or more (900 days of insurance at least 50 months before the subsidy).

Both during the 12 months of the three amounts and during the 12 months of the fixed subsidy, the amounts will decrease.

What amounts will an unemployed person receive after the “lifting” of the allowance

For example, the amount of the unemployment benefit for an employee with a salary of 1,500 euros and 15 years of service will be structured as follows:

– For the first quarter, he will receive 648.72 euros (fixed part), 214.08 euros due to seniority (variable amount 1) and 267.60 euros (variable amount 2) as a salary increase equal to 125% of the amount of seniority. In total in the first quarter of his unemployment benefit he will receive 1,130.4 euros.
– In the second quarter, he will receive 939.72 euros.
– In the third quarter, he will receive 746.96 euros.
– In the fourth quarter, he will receive 527.09 euros.

In the first half of the following year, when the variable amount is discontinued, only the fixed allowance remains at 278.03 euros per month.

In the second half of the same year, the fixed allowance is further reduced to 185.35 euros per month.

“Scissors” in family member increments

With the new decision, scissors are added to membership increases. Instead of 10% of the allowance that is now, the pilot allowance increase will be 40 euros for a protected member and 20 euros for each subsequent one with a ceiling of 100 euros.

Current benefit recipients who do not join the pilot scheme will continue to receive unemployment benefit without changes.

The new subsidy system will be applied within the first quarter of 2025 as a pilot to 15,000 unemployed jobseekers who will be randomly selected from the register of the Public Employment Service (formerly OAED). The duration of the pilot allowance will be for 16 months and with
its expiration will be applied to all unemployed people who will be entitled to benefits.