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Estonia · Law · SE

519

The Act on Amendments to the Unemployment Insurance Act and Amendments to Other Acts Related thereto

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

7 October 2024

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AVALDATUD_RIIGITEATAJAS

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Source updated

14 May 2025

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Summary

According to the bill, the payment of unemployment benefits will be stopped. In the future, in case of job loss, the registered unemployed person will be paid either income-based unemployment insurance benefit or the new basic rate unemployment insurance benefit created by the bill. The current unemployment insurance benefit will be renamed income-based unemployment insurance benefit and the conditions for receiving it will not be changed. Unemployment insurance benefit at the basic rate is assigned to a person who is unemployed before being registered worked for at least 8 months during the previous 36 months. Compensation is paid for up to 180 days, and the amount of compensation is the same for everyone, 50% of the minimum salary of the previous calendar year (in 2024, the amount of compensation would be 374.50 euros per month). People who do not meet these requirements can apply for subsistence allowance from the local government. According to the forecast, the costs of the implementation of the law will increase by 2.3 million euros in 2026, because at the same time payments will be made before the unemployment benefits and unemployment insurance benefit at the base rate determined according to the new system. In the years 2027 and 2028, there will be cost savings of approx. 23.2 and approx. 25.3 million euros, respectively. The changes will take effect on January 1, 2026. In addition, the problem raised by the Chancellor of Justice, that the current procedure allows a student up to the age of 24 living separately from his family, to pay subsistence allowance only if his family was awarded subsistence allowance in the previous or current bullet. It is also provided for the possibility to pay subsistence allowance as an exception to students up to the age of 24 who live separately from their families, if their relationships with family members have been broken or the parents lack the ability to support their children. During the procedure, the Social Committee made an amendment proposal to bring the Work Ability Support Act into line with the Constitution. On June 6, 2024, the plenary session discussed the proposal of the Chancellor of Justice, the plenary session supported it proposal of the chancellor of justice, and the social committee was tasked with initiating a draft to bring the work ability support act into line with the constitution. The amendment adds to the exceptions for calculating the amount of work capacity allowance the possibility to also include the situation where a person is paid in one calendar month both the salary of the previous month and the salary earned in the same month at the end of the employment contract or service relationship, which would normally be (i.e. if the employment contract or the employment relationship would not have been terminated) paid out the following month. A person can apply for the recalculation of the work capacity allowance if he proves to the unemployment fund that his income exceeds 90 times the daily rate because he has been paid in one calendar month both the salary of the previous month and the salary earned in the same month due to the termination of the employment contract, but not yet paid. In order to recalculate the work capacity allowance, an application and employer's certificate must be submitted to the unemployment fund, where you can see the received fees and the type of fees, and an extract from the employment contract, where you can see the agreed time of receiving the salary.

Machine translation from Estonian. The official text remains authoritative.

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23 official files

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