Unemployment insurance : the decree of the reform published, what you can expect

REFORM UNEMPLOYMENT INSURANCE. The decree approving the partial entry into force of the reform of the unemployment insurance has been published in the official

Unemployment insurance : the decree of the reform published, what you can expect

REFORM UNEMPLOYMENT INSURANCE. The decree approving the partial entry into force of the reform of the unemployment insurance has been published in the official Journal on Wednesday. Calculation, all rights... Here's what this means.

Contents Reforming Conditions Calculation and duration Demand

[updated march 31, 2021 at 14h05] It is now official : the reform of the unemployment insurance will indeed enter into force. The corresponding decree was published on Wednesday in the official Journal. In detail, a partial entry into force is scheduled for the 1st of July 2021. The reform of the unemployment insurance would have had to be implemented in the spring of 2020. It has, however, been postponed due to the health crisis of the coronavirus. According to a preliminary assessment of the Unédic recently unveiled by The World, it could have an effect on more than one million people. In total, 1.15 million beneficiaries that will be opened in the year following July 1, would be allocated more low - an average of 17 percent - with the current rules of compensation. At the beginning of march, the ministry had mentioned a decline for more than 800 000 people, arguing that the compensation, it would be longer. But, in fact, that act, the decree on the reform of the unemployment insurance ? Linternaute.com sum up :

The change in the calculation of the daily wage of reference , which serves as the basis for the calculation of the unemployment allowance, with a mechanism of flooring : it enters into force at 1 July 2021. A bonus-malus on the contribution of the strong enterprises as consumers of precarious contracts : the first reference year starts on 1 July. The application, it will be effective as of September 2022. On the opening and the reloading of rights (4 to 6 months), as well as the gradual reduction of the allowance for the high-income , the decree act a clause to return to better fortune : there will be a decrease of at "least 130 000" job seekers in class "in the last six months" and 2.7 million reports prior to the hiring of more than a month on four consecutive months. The achievement of both objectives will be recognized by decree, for application of the measures a period of 3 months.

The trade unions CGT and the FO have already announced their intention to attack again the decree. The publication comes at a time when in April, the social partners and the executive must meet for a new collaboration, focusing this time on the governance of the unemployment insurance plan. It acknowledges a debt is very high because of the health crisis. The discussions promise to be stormy. A proposal of the rapporteur of the committee on social Affairs Thomas Mesnier (LREM) advance the idea of integrating the accounts of the unemployment insurance in the law of the financing of social Security.

The system of unemployment insurance is a compulsory insurance. It allows the payment of an allowance, called an allowance, return to employment (AER), to the people who have lost their jobs. To be eligible for the unemployment allowance, several conditions must be met. The funding of the plan is based on contributions. Find in our dedicated article all the details on the reform of the unemployment insurance and the terms of the current system to benefit from the allocation of a return to employment (AER).

That provides for the reform of unemployment insurance ?

The government has announced its arbitration on 2 march, during a video conference with the social partners. Goal, result in the output of the consultation, launched last September in order to adapt to the reform. That's the bottom line ? In detail, the e new calculation of the unemployment allowance will come into effect on July 1, 2021. The initial device provided that the daily wage of reference, which serves as the basis for the calculation of the unemployment benefit, is calculated by dividing the salaries received during the past 24 months, by all the days that they worked or not.

in Order to avoid that precarious workers alternating between short-term and period of inactivity will not be affected, the minister has corrected this measure, via the introduction of a floor. The latter will ensure a minimum allowance. The number of non-working days taken into account in this calculation will also be limited to a maximum of 13 non-work days out of 30. This new calculation would not be without impact : 840 000 people, or 38% of recipients, would receive an allocation less than 20% of what they touch today , depending on the Unédic. The ministry has given the example of a person who has worked for eight months on the last 24 months paid at the minimum wage (Smic). It would have benefited from a allowance of 985 euros for eight months with the rules of 2017. With the new version of the reform, the allocation would be 667 euros paid for 14 months.

The a gradual decrease of the unemployment allowance for the high income will also be implemented on 1 July. Employees under the age of 57 years old whose earnings exceed 4 500 euros gross per month would have their compensation decrease of 30% from the seventh month onward. Given the crisis, the government has indicated that the gradual decrease will be effective as of the ninth month, and until the return of better economic conditions.

What about the hardening of the opening of rights ? This measure will be implemented October 1, 2021

Updated Date: 01 April 2021, 03:57

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