Factsheet for measure
BE-2020-14/844
–
Updated
– measures in Belgium
Suspension of the degressivity of unemployment benefits during the crisis
Opschorting degressiviteit van de werkloosheidsuitkering
Background information
Generally the replacement rate of unemployment benefits decreases over time for the unemployed. The reasoning behind this is to provide a financial incentive for the unemployed to find a job faster. Because of the crisis unemployed do not have the possibility to look and apply for jobs. If their unemployment benefit would be reduced, this would punish them for reasons they do not have any control over. It is against this background, that this measure was taken by the government and made binding through royal decree.
Content of measure
The replacement rate and hence unemployment benefit gradually decreases with time according to the duration of unemployment and the career of the wage earner. This is called the degressivity of unemployment benefits. The measure suspends this degressive element of unemployment benefits for all unemployed in Belgium.
More specifically, the phase or sub-phase of the compensation period in which the person concerned finds himself on 1 April 2020 will be extended by three months.
This also applies to persons applying for benefits during the months April to June 2020. The phase in which the unemployed person starts will be extended by the period of that phase during the months of April to June 2020.
Updates
The following updates to this measure have been made after it came into effect.
|
14 September 2020
|
Employers and workers reached an agreement to extend the freeze on the degressivity of unemployment benefits until the end of this year. In addition to the freeze, a strong appeal is being made to the federal and regional governments to provide training and to job-seekers to follow it, with an additional focus on bottleneck occupations.
|
|
19 June 2020
|
Until the end of August, the benefit as fully unemployed does not decrease. This decision was made at the request of the trade unions. This from the point of view that it is extremely difficult to find a job in the corona crisis.
|
Use of measure
The exact number is not yet known but the amount of (temporary) unemployed increased drastically because of the Corona crisis. For March alone it is estimated that approximately 900,000 people will have made use of the temporary unemployment scheme. In addition to that there are also the people that were unemployed before the crisis.
Target groups
|
Workers
|
Businesses
|
Citizens
|
Unemployed
|
Does not apply to businesses
|
Does not apply to citizens
|
Actors and funding
|
Actors
|
Funding
|
National government
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Informed
|
Informed
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: Unknown
Involvement
The trade unions are strong proponents of the measure as it is very difficult to find (new) work in these times and unemployed should not be the victim of this externality.
Views and reactions
Again, the extent of their involvement is unclear. But is to be expected that they were at least informed of the measure, especially given the fact that the trade unions play an important role in the distribution of the unemployment benefits.
Sources
-
22 April 2020: Corona: Bevriezing van werkloosheidsuitkeringen
(www.sd.be)
-
30 April 2020: Koninklijk besluit tot het tijdelijk versoepelen van de voorwaarden waaronder werklozen, al dan niet met bedrijfstoeslag, kunnen worden tewerkgesteld in vitale sectoren en tot het tijdelijk bevriezen van de degressiviteit van de volledige werkloosheidsuitkeringen
(www.ejustice.just.fgov.be)
-
19 June 2020: ABVV.be
(www.abvv.be)
-
14 September 2020: Social agreement to guide companies further through the Covid-19 crisis
(www.vbo-feb.be)
