The trend in the area of unemployment benefits and unemployment assistance was similar to that of the previous year. The fall in the number of people entitled to unemployment benefits continued, while the number of recipients of unemployment assistance increased gradually. This fall is related to amendments to the EIAU from October 1998 which changed the way in which the area of rights arising from unemployment insurance was regulated (the right of inclusion, duration, extension until retirement, the link between entitlement and active jobseeking, etc.).

One factor that contributed to the fall in the number of people claiming unemployment entitlements was their involvement in active employment policy programmes. A total of 5,755 recipients of unemployment benefits or assistance were involved in these programmes; during the programmes, unemployment payments are suspended (i.e. are not paid out).

In 2000 the number of recipients of unemployment assistance shifted in a manner similar to 1999, which indicates a gradual increase in the number of recipients. The trend in the area of unemployment assistance is a direct result of changes in legislation; pursuant to the new EIAU, unemployment assistance can be claimed for 15 months or even longer (three years) in the case of persons who have less than three years until retirement and meet the legal conditions (income threshold).

The proportion of people entitled to benefits (unemployment benefit and unemployment assistance) in 2000 was on average 29.1% of all unemployed people (the 1999 average was 31%). The lowest proportion of unemployed people entitled to benefits was recorded in December 1995 (27%); in 2000 the proportion was the lowest at the end of December, when 25.7% of all unemployed people were entitled either to unemployment benefit or unemployment assistance.

Figure 21: Trends in the number of recipients of unemployment benefit (UB) and unemployment assistance (UA), and proportion among the unemployed, 1994-2000

Unemployed people may exercise their entitlements to unemployment benefit for the period during which they are jobless through no fault of their own. Under the amended EIAU, this right can be exercised provided the person concerned had unemployment insurance before employment was terminated, he was employed for a period of at least 12 months in the 18 months prior to the termination of employment, and no suitable employment is available while he is exercising the right.

On average in 2000, 27,264 people received monthly unemployment benefit - a fall of 19.5% on the 1999 monthly average. At the end of 2000 the ESS was paying unemployment benefit to 23,091 people - a fall of 26.1% compared to December 1999.

Figure 22: Recipients of unemployment benefit (UB) and unemployment assistance (UA), 2000 average

The level of unemployment benefit depends on the average wage the recipient was receiving before his employment was terminated. The average monthly wage for 12 months before a period of unemployment serves as the basis for the calculation of unemployment benefit.

Unemployment benefit amounts to 70% of the basic wage for the first three months of entitlement, and to 60% for all subsequent months. The level of unemployment benefit is harmonised in the same way as wages under the collective agreement for the commercial sector. The level of unemployment benefit was harmonised with the increase in the costs of living when payment for January (2.4%) and August (3.7%) were made.

The right to unemployment benefit can last a maximum of:

• three months for those with one to five years' insurance;
• six months for those with five to 15 years' insurance;
• nine months for those with 15 to 25 years of insurance;
• 12 months for those with over 25 years' insurance;
• 18 months for those over 50 with over 25 years' insurance;
• 24 months for those over 55 with over 25 years' insurance.

5. 2.

UNEMPLOYMENT ASSISTANCE

A person becomes entitled to unemployment assistance if his right to unemployment benefit or his employment after a trainee period that lasted less than 12 months have ended. The right may be exercised by a person who meets the condition under income (80% of the guaranteed wage per family member) and property limits.

In 2000 the right to unemployment assistance was exercised by 3,136 people, most of them (2,479) after the end of their unemployment benefit and 657 after the end of their trainee period. Five hundred and twenty people exercised the right to the remainder of assistance (following suspension of the right). At the end of the year 3,754 were receiving assistance, which is an increase of 14.3% compared to the previous year. The ESS paid monthly unemployment assistance to an average of 3,737 unemployed people (a fall of 22.7% compared to the 1999 monthly average).

Unemployment assistance amounts to 80% of the guaranteed wage minus tax and contributions. At the beginning of 2000 the assistance amounted to SIT 24,788 net, and at the end of the year to SIT 25,838 net.

TABLE XIV: Recipients of unemployment benefit (UB) and unemployment assistance (UA), 1991-2000