The increased component of unemployment benefits will be abolished on 1.1.2025
During the period of employment promotion measures, one currently receives an increased earnings-related component.
The draft government proposal for the removal of the increased component has now been published. The draft government proposal suggests that the increased component paid during employment pomotion measures be abolished. In the future, the same unemployment benefit would be paid during services promoting employment as when being unemployed. The increased component of the mobility allowance will also be abolished.
What is the timeline for the removal of the increased component?
If an employment promotion measure has started no later than June 30, 2024, the increased earnings-related component could be paid for the duration of the service even after the law comes into effect. However, this would be limited to a maximum of 200 days in total. For services that start later, the right to the additional component would end on December 31, 2024. If the service is segmented into completely separate parts, there would be no entitlement to the additional component for any part of the service starting on or after January 1, 2025
However, these amendments are still at the draft stage and preliminary, so there may still be changes during the parliamentary process.
