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BLACK ON WHITE ⟩ How to get unemployment benefits: here is the government's new plan

ЧЕРНЫМ ПО БЕЛОМУ ⟩ Как получить пособие по безработице: вот новый план правительства

On Friday, September 20, the Ministry of Economic Affairs and Communications announced that the old unemployment benefit system will be completely changed. The ministry explains when to seek help from the Unemployment Insurance Fund and when to seek help from the local government. To obtain health insurance, an unemployed person must still contact the Unemployment Insurance Fund, but payments may come either from the Unemployment Insurance Fund or from the local government. To obtain health insurance, an unemployed person still needs to contact the Unemployment Insurance Fund, but payments may come from either the Unemployment Insurance Fund or the local government. Photo: Madis Veltman

On Friday, September 20, the Ministry of Economic Affairs and Communications announced that the old unemployment benefit system will be completely changed. The ministry explains when to seek help from the Unemployment Insurance Fund and when to seek help from the local government.

Translation: Sergey Svetlov

The Ministry of Economic Affairs and Communications announced that the existing unemployment insurance system will be replaced by a single basic unemployment benefit.

"The current unemployment benefit system was created more than 20 years ago and no longer meets the objectives and current needs. In addition, the current unemployment benefit partially fulfills the functions of a subsistence benefit, and it is not advisable to maintain duplicate payments," said Minister of Economic Affairs and Industry Erkki Keldo (Reform Party). According to him, the new unemployment insurance system will be clearer and fairer for people.

The change is, firstly, that people can now quit of their own accord, and if they have worked for at least eight months, they will be able to receive benefits. Previously, such benefits were only paid in the event of dismissal due to redundancy. To receive benefits, you need to contact the Unemployment Insurance Fund, as before. Those who do not have enough work experience will have to apply for a subsistence benefit from their local government.

The second and more significant change for the state concerns the source of funding. Currently, unemployment benefits are paid from the state budget. After the abolition of unemployment benefits, state expenditure in the budget will be reduced: in 2026 by 40.6 million euros, in 2027 by about 63.8 million euros, and in 2028 by about 68.5 million euros. The benefits will be financed by unemployment insurance contributions. What will happen if these funds are not enough? Time will tell.

The changes mean that when a person loses their job, they will be paid either the current earnings-based unemployment benefit or a new basic unemployment benefit. The basic benefit is available to those who have paid unemployment insurance contributions, in the same way as the earnings-based unemployment benefit.

Laura Laaster, head of the public relations department at the Ministry of Economic Affairs and Communications, explained what people will have to do if the law comes into force. According to available information, the law is expected to come into force in 2026.

What will happen to health insurance? Where should I register?

If a person is registered with the Unemployment Insurance Fund (regardless of what benefit he receives), he automatically receives health insurance and no additional action is required for this.

Even in the case of long-term unemployment – for example, if I have been unemployed for two years but am registered with the Unemployment Insurance Fund – health insurance still applies.

If I have not worked for two years, am not registered with the Unemployment Insurance Fund and receive the subsistence minimum, then I do not have health insurance. However, in practice, local governments refer all unemployed people to the Unemployment Insurance Fund, and without this, the subsistence minimum benefit is not assigned. The goal is for people of working age to participate in the labor market or at least try to do so.

Simply put: if I leave my job, where do I submit my application?

If a person has more than one year of employment* and their employment relationship ends for an involuntary reason (e.g. layoffs), they will receive income-based unemployment insurance benefits as they do now.

If a person's unemployment insurance period is at least eight months, he or she is entitled to receive a new basic unemployment insurance benefit, regardless of the reason for termination of employment. Thus, the basic unemployment benefit can also be received by an unemployed person whose insurance period, for example, is 12 months or more, even if he or she resigned voluntarily or by mutual agreement.

*These benefits will be paid through the Unemployment Insurance Fund, but you must apply for them (as not all people want to receive benefits, although they are entitled to them).

If a person's unemployment insurance period is less than eight months and they need help from the Unemployment Insurance Fund to find a new job, they still need to register as unemployed with the Unemployment Insurance Fund, but they will not be entitled to basic benefits. In such a situation, if a person needs state assistance for everyday survival, they can apply for subsistence benefits from their local government.

*For the sake of accuracy, the term "unemployment insurance period" should be used, since work experience can be understood as work for which no unemployment insurance contributions are paid, such as the work of sole proprietors (FIE), members of executive bodies, notaries, members of local governments, judges or working pensioners under an employment contract. However, the condition for receiving benefits is the payment of unemployment insurance contributions.

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