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Minister Keldo on the abolition of unemployment benefits: The unemployment fund must reduce its costs and services

Министр Келдо об отмене пособия по безработице: Касса по безработице должна сократить свои расходы и услуги

The unemployment benefit reform proposed by the government will see the Unemployment Insurance Fund take on additional liabilities of over 40 million euros. According to Minister of Economy and Industry Erkki Keldo (Reform Party), the department will need to review its services and expenses to cover the deficit, rather than increase the unemployment insurance tax rate. The government yesterday gave the green light to a plan that would abolish unemployment benefit in its current form and create a new, basic benefit. While the current system pays unemployment benefits to those in need from the state budget, the unemployment insurance benefit based on the basic rate will now be paid by the Unemployment Insurance Fund itself. Although the change will entail additional expenses of over 40 million euros for the department, the state does not plan to allocate additional money to the Unemployment Insurance Fund for this purpose. "The change in the unemployment benefit system will affect both the budget of the Unemployment Insurance Fund and its future operations. If the obligation to pay unemployment benefits is transferred from the state budget to the Unemployment Insurance Fund, this means that a liability of 40-50 million euros will have to be assumed," said Annika Koppel, Head of Communications at the Unemployment Insurance Fund.

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