What does tapering mean?
- After 40 days of unemployment benefit payments (about two months), the benefit amount is reduced by 20%. After this, you will receive 80% of the original daily benefit amount.
- The second reduction occurs after 170 days of unemployment (approximately eight months), with a 25% reduction on the original amount. After this, you will receive 75% of the original daily benefit amount.
Who does this change affect?
Tapering applies to individuals whose employment conditions were met in September or later. Additionally, it requires that at least 465 euros earned and paid for work after 1 September 2024 be included in the employment requirement.
If your unemployment began before 2 September 2024, tapering will not immediately impact your benefits, but only when you fulfil the employment requirement again.
Application Examples
The first reduction due to tapering may appear in benefits in November. Here are two simplified examples of how the tapering is applied:
Example 1:
Your employment ended on 31 August 2024, and you registered as an unemployed job seeker from 1 September. You have not earned wages for work done after 1 September, so you are not yet subject to tapering until some future point when you fulfil the 12-month employment requirement again.
Example 2:
Your full-time employment ended on 5 September 2024, and you registered as an unemployed job seeker from 6 September. You earned wages for work after 1 September, so you are subject to tapering. After the 7-day waiting period from 6th to 16th September, you began receiving benefits from 17th September onward. The tapering counter accumulates 40 days from 17th September to 11th November, so your benefit level will be reduced by 20% from 12th November onward.
The Effect of Tapering on Benefit Amounts
Here are examples of how tapering affects the benefit amount:
Salary Before Unemployment €2,000/month
Full Earnings-Related Benefit €1,306/month
20% Tapering Impact -€261/month
Benefit Amount After First Taper €1,045/month
25% Tapering Impact -€327/month
Benefit Amount After Second Taper €980/month
Salary Before Unemployment €2,500/month
Full Earnings-Related Benefit €1,523/month
20% Tapering Impact -€305/month
Benefit Amount After First Taper €1,218/month
25% Tapering Impact -€381/month
Benefit Amount After Second Taper €1,142/month
Salary Before Unemployment €3,000/month
Full Earnings-Related Benefit €1,739/month
20% Tapering Impact -€348/month
Benefit Amount After First Taper €1,391/month
25% Tapering Impact -€435/month
Benefit Amount After Second Taper €1,304/month
Estimate the Impact of Tapering on Your Own Benefits
You can estimate the impact on your benefits using the Unemployment Funds Federation’s calculator.
The reduced benefit is paid until the maximum entitlement period is reached if unemployment continues. Full benefits are paid again when you re-qualify under the employment requirement.