Unemployment insurance: what reform project?


Unemployment insurance. The government began consulting with the social partners on the thorny issue of unemployment benefits.

[Mise à jour du vendredi 26 août 2022 à 06h57] The start of the school year is expected to be particularly busy. In addition to pension reform, the executive branch plans to relaunch unemployment insurance reform in the fall. As a first step, a bill should be sent this weekend to the social partners, notes Les Echos. At the same time, the Minister of Labour, Olivier Dusupt must begin consultations with unions and employers. The text provides in particular for the extension of the existing compensation rules, resulting from the recent unemployment reform (see below), as well as a comprehensive reform of the validation of experience gained (VAE). “There is an urgent need: that the unemployment insurance reform, decided in 2019 and implemented in 2021 due to Covid, sees its rules as being extended, and he has put it in columns Parisian. It expires on November 1, 2022. We want to extend it to allow this reform to continue to have its positive effects and to think about the next step.” This text constitutes the first stage of the project that Emmanuel Macron desires. The President of the Republic really wants Amending the rules for compensating the unemployed according to the economic situation, on the Canadian model. “In order to ensure that, when the economy is in good shape (…), the compensation rules are more incentive to resume work,” Olivier Dusupt emphasized, at the France microphone, on Wednesday. There are two ways on the table: either change the term of compensation for job seekers, or gradually reduce the amount of compensation. The Minister reiterated that these criteria will be discussed as part of the consultations.

Unemployment insurance is an allowance paid to private sector employees who have lost their jobs. The right to compensation is calculated on the basis of the previous salary of the unemployed person. Unemployment insurance plays two roles: it helps the financially unemployed manage their job loss, by maintaining their purchasing power and living conditions. It also offers a solution to get back to work through personal support. The allowance is paid during periods of training, business creation or retraining.

Unemployment insurance reform: what has really changed for the unemployed?

Unemployment insurance reform has been ongoing since 2019, but new changes were implemented in 2021 and 2022. Here are the four main points of unemployment insurance reform:

  • new allotment account;
  • Reducing unemployment benefits (deterioration) for people with high incomes;
  • Reward for unemployment contribution;
  • Change the minimum working time to obtain unemployment insurance.

This reform provides for compensation of self-employed and resigned employees of the retraining project, under certain conditions. The minimum working period for unemployment benefit increases from 4 months to 6 months of work in the 24 months preceding the end of the last decade.

How does unemployment insurance and compensation work?

Unemployment insurance or ARE (return to work allowance) is calculated on the income of the last 12 months, taking into account the days worked. The unemployment insurance reform provides for new calculation rules, setting the average monthly income including working days and periods of inactivity. For higher salaries, a depreciation may be applied to the amount of the allowance, with a 30% reduction after 8 months of compensation.

Whose unemployment insurance?

Private unemployment insurance is insurance that makes it possible to compensate for a decrease in income after a job loss. It targets business leaders as a major guarantee, and the latter does not benefit from the help of Pôle Emploi. It can also relate to employees who want help in addition to traditional unemployment insurance.

Join the unemployment insurance system

Unemployment insurance is mandatory for all private sector employees and is financed by them in the form of salary deductions. All private sector employers must join the unemployment insurance system. Solidarity, the allowance makes it possible to provide the best support to former employees of low income, who prefer those who benefited from high salaries.

Leave a Comment