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How the government’s intended laws would affect your work

News article

The government plans to pass laws to abolish at least child increases, the 300-euro exempt amount of earned income and the job alternation leave system and to decrease the level of unemployment security, according to a list of legislative changes published by the KOKO unemployment fund.

The Unemployment Fund for Highly Educated KOKO has published a long list on its website of the legislative changes planned by the government, which would, if realized, affect the unemployment security of highly educated professionals.

For example, the majority of TEK’s full members who are employees are members of the KOKO unemployment fund.

Among other measures, the government plans to abolish the job alternation leave system. This system has allowed a person to take leave from work for a maximum of 6 months while the employer has hired an unemployed person for the same period. During job alternation leave, job alternation compensation has been paid instead of salaries. Last year, 5 300 persons took job alternation leave. 

Last year, around one third of the people receiving earnings-related unemployment allowance received child increase.

The Government Programme also states that the waiting period for unemployment benefits will be extended by two days and that the level of unemployment security will decrease after two months. Currently, unemployment security is not staggered and the level remains unchanged throughout the maximum duration of earnings-related unemployment allowance.

Employees required to work longer to qualify for earnings-related unemployment security

The Government Programme stipulates that the length of the prior work requirement for earnings-related unemployment security will be doubled to one year. Currently, earnings-related unemployment allowance may be obtained after 6 months of work.

The Government Programme has also agreed on the withdrawal of the exempt amount of earned income. Currently, recipients of unemployment benefits can earn 300 euros without their salaries or business income affecting their daily allowance. Each euro of earned income above the 300-euro exempt amount reduces the unemployment benefit by 50 cents. In other words, the amendment would cut the benefit for those receiving earned income by a maximum of 150 euros per month.

Moreover, the Government Programme has agreed on the abolition of child increases supplementing unemployment security. Currently, child increases range from 150 to 285 euros per month. Last year, around one third of the people receiving earnings-related unemployment allowance received child increase.

As far as we know, the amendments will enter into force in stages during 2024.