The Government Proposes the Removal of Unemployment Benefit Increases

The government has proposed the removal of the additional increments of unemployment benefits starting from 1 January 2025. Currently, unemployment benefits are paid at an increased rate when an individual participates in a service that promotes employment. The mobility allowance is paid at an increased rate when an individual accepts a job or training over 200 kilometres away from their actual place of residence.

A draft government proposal regarding the removal of these increments has been published. According to the draft, the increment paid during services promoting employment could be paid until the end of the service if the service has started no later than 30 June 2024. However, the additional component is always paid for a maximum of 200 days. If the service is organised in separate periods that do not follow consecutively, the increments would not be paid for service periods starting on or after 1 January 2025. For services starting on or after 1 July 2024, payment of the additional component would end on 31 December 2024.  

No transitional provisions have been proposed for the increment of the mobility allowance. This means that the increment of the mobility allowance could no longer be paid under any circumstances after 31 December 2024. 

It is important to note that the information presented in the draft government proposal is preliminary and may change before the law is confirmed. The proposal is related to the state budget proposal for 2025 and is intended to be considered in conjunction with it. 

We will follow the progress of the government proposal and inform our members of any changes and their effects on unemployment benefits.