Unemployment Benefit Level Will Be Gradated Starting September 2, 2024

Parliament has approved a legislative amendment concerning the gradation of earnings-related unemployment benefits. The gradation will reduce the amount of unemployment benefits for the first time after 40 days of unemployment benefits have been paid. After this reduction, the benefit amount will decrease to 80% of the original level. Additionally, the benefit will be reduced again after a total of 170 days of unemployment benefits have been paid, at which point the daily allowance will drop to 75% of the original level. 40 days correspond to about two months and 170 days to about eight months.

The legislative amendment on gradation will be applied starting September 2, 2024. The change applies to individuals whose employment condition is met in September or later. Additionally, it is required that salary earned and paid after September 1, 2024, is counted into the employment condition. In cases where the benefit period has started before September 2, 2024, the gradation will not immediately affect the benefit level but will do so once the employment condition is met again.

On September 2, 2024, other significant legislative changes will also come into effect. The length of the membership and employment conditions will double, and the employment condition will change to an income-based one. Additionally, some age-related exceptions in unemployment security will be abolished. One such exception is the protective provision for those aged 58 and over. According to this provision, the level of earnings-related daily allowance could not decrease if the person had re-met the employment condition after turning 58. Moreover, the TE Office’s and municipalities’ obligation to employ certain people aged 57 and over will be abolished, meaning that the employment condition can no longer be met through employment or service arranged on this basis. The legislative changes will also weaken the possibility of fulfilling the employment condition through pay-subsidized employment.