The implementation of the pilot unemployment allowance program in accordance with JMD 54427/20.12.2024 (Government Gazette B ‘7047/20.12.2024) has begun today, Friday, March 28th), as announced by DBA.

The goal is to start the pilot experience to create a new unemployment allowance tailored to the needs of the modern labor market, more effective, simpler, fairer and more reciprocal.

Specifically, today the default of potential beneficiaries of the new unemployment benefit through a special algorithm is being held that automatically calculates the allowance with both the existing institutional framework and the new one.

A key criterion for the default of beneficiaries through the algorithm is to pay a total of equal or greater than the amount paid by the existing subsidy system under the pilot program.

The pilot action is implemented after the preparation of a public employment service study in cooperation with the OECD in the context of a Technical Assistance project of the European Commission’s DG Reform Support and is funded by the EUR 100 million recovery and resilience fund.

The goals of the new unemployment benefit are as follows:

  • Greater support and motivation for work: It will support the unemployed in the first 6 months, compared to the current context, as they will be forward -looking – it will start higher at first and will decrease – giving an incentive for a faster return to work.
  • Payment and Justice: The amount of the subsidy is based on the contributions paid by the unemployed, as already in 25 of 27 EU countries, and will not be assimilated to large differences, as is the case in our country. Today, regardless of whether someone worked for 2 years with a minimum wage or 20 years with a salary of 2,000 euros, he receives the same allowance for the same period.
  • Effectiveness and Simplification: Merging the long -term unemployment allowance to the new unemployment benefit and automation of complex processes will ensure simplification and enhance the effectiveness of the benefit.

The new allowance consists of three parts:

  • Fixed Sorting Part: Calculated on the basis of the beneficiary’s earnings in line with the legal minimum wage, starting in the first quarter of 70% of the minimum wage (or average wage of his earning 1st semester of 2nd year, 20% 2nd semester 2nd year), while the average subsidy rate in the first 12 months remains at 55% of the legal minimum wage, as it is today.
  • Variable Subscriber (“Bonus”): Depends on the years of insurance (from the 4th to the 20th year of insurance) and the average remuneration of the beneficiary. In this way, working life is interconnected with the amount of the variable part of the subsidy, increasing the overall allowance for those who have worked at least 4 years, enhancing the reciprocal nature of unemployment insurance. It is recalled that the unemployment benefit is reciprocal (derived from paid contributions) and not welfare.
  • Additional benefits: Christmas and Easter gifts, children’s surcharges and-for the first time-increases due to single parenting.

Questions and Answers for DBA Unemployment Pilot Pilot Benefit:

1. Why do you need a change in unemployment benefit? The institutional framework for the unemployment benefit was formed in the 1950s, so it is necessary to update it in order to be linked to the needs of the modern labor market and to respond to today’s key demands that are the essential and fair support for the unemployed and the motivation for the labor market.

2. What needs is the new pilot program for regular unemployment subsidy to meet? The new pilot program of regular unemployment is aimed at modernizing the benefit to respond to modern socio -economic conditions and to enhance its efficiency, (b) the support of the beneficiaries, in the treatment of unemployment, especially the first difficult months, and their labor markets, and their labor markets, Beneficiaries depending on their years of work and their earnings, that is, their contribution to the insurance system.

3. What are the key changes to the new regular subsidy program to serve the above goals? The changes are focused on three axes: a) on the conditions of integration, (b) during and c) on the grant. Specifically:

  • It merges regular subsidy with the long -term unemployed allowance, allowing a maximum subsidy of up to 2 years (24 months), following a personalized approach to the height of the allowance.
  • It sets on a more rational basis both integration into the subsidy, setting as a threshold of 175 days of insurance, and the duration of the subsidy, now calculated by a ratio of 2 months of employment: 1 month month for the first year of subsidy, and 3 months of employment: 1 month month month for the second year.
  • It takes into account insurance history for calculating the amount of the allowance, offering a fixed part that everyone receives and an extra variable part, depending on insurance history.
  • In addition to Christmas and Easter gifts and children’s surcharges, for the first time, it takes into account the status of the monogy, which is reinforced by an additional amount.
  • They are forward-looking, with the subsidy being higher in the first months and gradually decreasing to enhance the reintegration of the labor market, as in 17 EU member states.

4. How will beneficiaries be selected for the new unemployment subsidy pilot program? The selection of beneficiaries will be accidentally made through an automated system (RCT), by all applications submitted for regular unemployment subsidy, provided that the new eligibility requirements and the total amount of the subsidy under the new terms are fulfilled. The new pilot program is for those who have not received a subsidy in the previous 4 years from the solution of their employment relationship.

5. How is the application for the new unemployment subsidy program under its pilot implementation? A separate application is not required, as the same application is used for the existing unemployment benefit through the Electronic Services of the DBA. The supporting documents remain the same and are sought on its own motion. There is only one additional supporting documents for the status of a single -stroke, which will be attached to the application, as only for this supporting document is there no possibility of an ex officio search.

6. Will the pilot beneficiaries receive a lower subsidy height? No unemployed who participates in the unemployment pilot allowance will receive a lower subsidy than the one he would receive with the current system, just as the law on the pilot program provides.

7. Are those who already receive the unemployment benefit affected by the pilot program? No. Those who receive unemployment benefit according to the current system continue to receive it normally for the entire duration of their subsidy without being affected.

8. Does the pilot implementation of the unemployment benefit also concerns seasonal allowance? No. The pilot application concerns only the regular unemployment benefit and is not related to the seasonal unemployment benefit.

9. When is the full implementation of the new unemployment subsidy program complete? During the pilot implementation, the program will be evaluated and, based on the findings of the evaluation, it will be amended accordingly and implemented universally to all the unemployed.

10. How many beneficiaries will be selected for participation in the pilot? The unemployment pilot will be applied for about 15,000 beneficiaries.