Entitlements to unemployment benefits could no longer be calculated on a daily basis but on a monthly basis. This measure, proposed by employers’ organizations (Medef, CPME and U2P), would cause beneficiaries to lose 5 or 6 days of compensation per year.
A new calculation of unemployment benefit could cause beneficiaries to lose nearly a week of compensation over a year. A new calculation model was proposed by employers’ organizations (Medef, CPME and U2P) this Wednesday, October 25. And it could well see the light of day in 2024, if the text obtains the agreement of the unions.
The unions (CGT, CFDT, FO, CFTC, CFE-CGC) and employers’ organizations will meet again on November 9 and 10 to finalize the new 2024 unemployment insurance rules
Unemployment benefit: a new revaluation in 2023 after a first, exceptional, in April
A calculation of compensation smoothed over 30 days
Until today, the compensation received by job seekers is calculated on a daily basis and paid monthly. If the proposed measure is adopted, compensation will be calculated over 30 days.
Thus, regardless of the number of days in the month, the monthly payment would be calculated on the basis of 30 daily allowances in the event of complete unemployment, explained Undic in a working document sent to the social partners, reports Capital.
This measure would reduce the amount received by beneficiaries in 31-day months like January but would increase that of the month of February (which has 28 or 29 depending on the year). In total on a whole year, a job seeker could lose five or six allowances daily. This system could make it possible to make nearly 200 million euros in savings per year, according to Undic, cited by Capital.
The monthly payment, yes, if we do 365 days divided by 12 months, that is to say 30.41 days. In this case, no problem. But the employers want to make monthly payments over 30 days. It may be detail but accumulated, all these measures always lead to a reduction in rights, responded Eric Courpotin, of the CFTC Capital.
Already in February, the unemployment compensation reform had reduced the rights of beneficiaries, not on the amounts but on the duration of compensation. The duration now varies depending on the unemployment rate. Thus, if the unemployment rate is less than 9%, the duration of compensation for job seekers will be reduced by 25%respecting a minimum duration of 6 months.
This smoothing of allocations would allow to save nearly 200 million euros for the state from the third year of application, according to Undic.