The various unemployment benefits dropped 47% of the 307,055 registered job centers in December last year. According to Dinheiro Vivo’s calculations based on data from the Institute of Employment and Professional Training (IEFP) and Social Security released yesterday, only 163,824 unemployed people were entitled to a subsidy for this purpose, meaning a coverage ratio of only 53%. This is down two points compared to the previous month (55%) and eight points year-on-year (61%).
If we analyze the evolution of the allocation of unemployment benefits through 2022 – from the normal subsidy to the initial and later social support or the exceptional support measure for the long-term unemployed – it turns out that December was the second month in which unemployment support coverage became lower, just after October, a period when only 50% of the population registered with the IEFP had access to subsidies.
The average value of the monthly installment was 558.02 euros in the last month of last year, down from 558.81 euros in November, but increased from 543.88 euros in December 2021, according to the Social Security report .
As regards the various support measures for the unemployed, 126,723 beneficiaries, representing more than 77% of the total, received normal unemployment benefits. It is important to consider the requirements that must be met in order to access this benefit. The worker must reside in the national territory, be involuntarily unemployed, fit for work and available. In addition, you must have the required guarantee period, which is 360 days of work for an employee with recorded income in the 24 months prior to the date of unemployment, and you cannot accumulate the subsidy with pensions or other Social Security assistance. Social.
The duration of this grant varies according to age and number of rebates and can range from five months to up to two and a half years. With regard to the amount to be claimed, the daily amount is equal to 65% of the reference wage, which is calculated by adding the wages of the first 12 calendar months of the last 14, starting from the month preceding the unemployment date, including benefits holidays and Christmas, divided by 360 days. The maximum value is EUR 1201.08, which corresponds to two and a half times the value of the Social Support Index (IAS), which is EUR 480.43.
Only 79 people benefit from support for the long-term unemployed. That is why there will be a new incentive premium that allows to build up to 65% of the subsidy with the salary.
When this support ends, there is always the possibility to appeal to the initial and subsequent social allowance. However, it is necessary to meet the means condition, which often makes it difficult to apply for this support. The candidate must prove that he has no movable assets (bank accounts, shares or mutual funds) exceeding EUR 115,303.2 on the date of application and must demonstrate that each family member does not have a monthly income exceeding EUR 384.34 (80 % of IAS)
The support, currently in force and created in 2016, targeting the long-term unemployed, i.e. those registered with job centers for more than 12 months, is one of the measures with the lowest compliance. In December, there were only 79 beneficiaries of this subsidy, which is 0.05% of the total number of unemployed. This is a monthly installment, equal to 80% of the amount of the last unemployment benefit received, to be granted during six months from the date of submission of the application. The access conditions are identical to those of the initial and later social allowance, which ultimately makes many applications unfeasible. In addition, you must no longer receive unemployment benefits or benefits for more than six months. There is also a partial unemployment benefit that can be added to a part-time job or self-employment as long as the salary is less than the support the unemployed person receives. Neither the IEFP nor Social Security provide figures for this measure.
Labor Minister Ana Mendes Godinho has already acknowledged the ineffectiveness of the support for the long-term unemployed and the partial subsidy. That is why she decided to create a new incentive for those who have been working for more than a year and which allows to accumulate up to 65% of the subsidy with a full-time job, as long as the salary does not exceed 3040 euros. During the subsidy period, the value can rise to 3800 euros. To benefit from the maximum support of 65%, the unemployed must sign an open-ended contract and start it as early as the 13th month of unemployment benefit. The aid drops to 45% between the 19th and 24th month and to 25% between the 25th month and the end of the concession period. Fixed term contracts are accepted but must be at least six months.
In these cases, the support is less. If the contract lasts between six and twelve months, the employees can accrue only 25% of the unemployment benefit until the end of the unemployment benefit concession. A contract between 12 and 24 months entitles you to 45% of the subsidy between the 13th and 18th month of unemployment benefit, which drops to 25% between the 19th and the end of the concession period. The measure should come into effect in the second half of this year.
Source: DN
