5. UNEMPLOYMENT INSURANCE

In 2001 the fall in the number of people entitled to unemployment benefits continued, while the number of recipients of unemployment assistance gradually increased. This fall is related to amendments to the Act in October 1998 which changed the way in which the area of rights stemming from unemployment insurance is 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 aimed at them. A total of 4,999 recipients of unemployment benefits or assistance were involved in these programmes; unemployment payments are suspended (i.e. not paid out) during the programmes.

In 2001 the number of recipients of unemployment assistance shifted in a manner similar to 2000, which indicates a gradual increase in the number of recipients. This trend in the area of unemployment assistance was a direct result of changes in legislation; pursuant to the new Act, unemployment assistance can be claimed for 15 months or even longer (three years) in the case of people 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), which in 2001 was on average 25.3% of all unemployed people (the 2000 average was 29.1%), also fell. In 2001 the proportion was the lowest at the end of December, when 23% of all unemployed people were entitled either to unemployment benefit or unemployment assistance.



Figure 23: Trends in the number of recipients of unemployment benefit (UB) and unemployment assistance (UA), and share of the unemployed, 1994-2001

Pursuant to the provisions of the Act envisaging active involvement by and greater obligations for the unemployed when jobseeking as well as when joining active employment policy programmes, and to the Rules on the Criteria for Fulfilling the Obligations of Unemployed People and Ending the Right to Financial Assistance Stemming From Unemployment Insurance, the ESS scrupulously supervised whether beneficiaries were fulfilling their obligations and, in the event of infringements, applied appropriate sanctions.

 

5. 1. UNEMPLOYMENT BENEFIT

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 Act, 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 was available while he was exercising the right.

In 2001 an average of 21,525 people received monthly unemployment benefit (27,264 in 2000), which was a fall of 21.1% on the 2000 monthly average. At the end of 2001 the ESS was paying unemployment benefit to 19,489 people - a fall of 15.6% compared to December 2000.


Figure 24: Recipients of unemployment benefit and unemployment assistance, 2001 average

The unemployment benefit amount depends on the average wage the recipient was receiving before his employment was terminated. The average monthly wage for 12 months before 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 payments 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 5,542 people (in 2000, 3,136) most of them (4,730) after the end of their unemployment benefit (2,479 in 2000) and 812 after the end of their trainee period. At the end of the year, 4,516 were receiving assistance, which was an increase of 20.3% compared to the previous year. The ESS paid monthly unemployment assistance to an average of 4,249 unemployed people (13.7% more that the 2000 monthly average). Unemployment assistance amounts to 80% of the guaranteed wage, minus tax and contributions calculated from the guaranteed wage. At the beginning of 2001 the assistance amounted to SIT 26,931 net, and at the end of the year to SIT 28,057 net. In line with the amended Act, unemployment assistance can be received for 15 months.

Table XIV: Recipients of unemployment benefit (UB) and unemployment assistance (UA), 1991-2001

Year
No. of UB recipients(Dec)
No. of UA recipients (Dec)
Total recipients of UB and UA
UB and UA growth index(previous year = 100)
Average duration of receipt of UB(months)
Average duration of receipt of UA(months)
Average monthly no. of UB and UA recipients
Proportion of UB and UA recipients in monthly unemployment
1991
31.818
14.110
45.928
168,6
4,2
7,6
30.053
40,0
1992
32.533
18.229
50.762
110,5
8,5
10,4
46.191
45,0
1993
42.582
20.052
62.634
123,4
14,3
19,0
55.618
43,1
1994
31.452
11.036
42.488
67,8
14,4
8,0
53.454
42,1
1995
28.305
5.936
34.241
80,6
12,7
7,3
36.824
30,3
1996
33.715
4.112
37.827
110,5
13,1
5,9
36.343
30,3
1997
37.152
3.734
40.886
108,1
11,6
3,7
40.791
32,6
1998
36.082
2.818
38.900
102,8
14,3
3,7
41.065
32,6
1999
31.227
3.283
34.510
88,7
17,8
3,9
36.905
31,0
2000 23.091 3.754 26.845 77,8 22,3 6,9 31.001 29,1
2001 19.489 4.516 24.005 89,4 20,6 8,0 25.774 25,3