Major changes come to unemployment benefit with the monthly amount reaching EUR 1,375. The new system is vantageous, starting with a higher amount in the first six months and decreasing per quarter, giving incentives for faster return to work. The regular unemployment subsidy and longterm unemployment benefit are merged into a single allowance. The ISPA pilot project was launched in April 2025 and extends until 30 June 2026, funded with 100m euros from the Recovery Fund. More than 15,000 unemployed already receive the increased subsidy.
Analyticalally:
Major changes come in terms of unemployment benefit with the amount of monthly financial aid reaching EUR 1,375.
The new allowance supports the unemployed more in the first 6 months, compared with the current framework, as they are headquartered — starts higher initially and goes down by quarter — providing incentives for faster return to work.
However, no beneficiary receives a lower amount than the old system would receive a total of 12 months of unemployment.
Today, the system is based on two different benefits – regular unemployment subsidy and long-term unemployment benefit — operating on separate criteria.
With the new model, these two benefits are merged into a single allowance, simplifying the process and reducing the administrative burden.
Unemployment benefit
The DYPA pilot programme for the adoption of the new unemployment benefit model, which changes the philosophy of support for the unemployed, after eight months of implementation came to an end, covering 15,000 unemployed.
The selection was made using the Randomized Controlled Test method, taking into account age, gender and place of residence criteria, provided that the new unemployment allowance received by beneficiaries would be higher overall than the existing one.
The algorithm automatically calculated the allowance with both current data (now unemployment benefit, after raising the minimum wage, is EUR 565), and with the new scheme.
If the unemployed receive a higher allowance with the new system, it is automatically pre-selected.
The trial period of the program began in April 2025 and has expanded until 30 June 2026. The funding comes from the Recovery Fund with a total budget of EUR 100 million.
To date, more than 15,000 unemployed have joined the programme and receive the increased subsidy, with some reaching the ceiling of EUR 1,375 per month.
The allowance consists of a fixed and variable amount, while the duration of subsidy can be up to 24 months, subject to 175 days insurance, strengthening those who have paid more contributions and have greater work experience.
Conversely, the less the stamps and salaries, the less the supply will be.
Source: OT
