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3 unemployed people will get lower unemployment benefits

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The Norwegian government in this year's budget tightened the regulations on unemployment benefits. As a result of these activities, as many as 3550 people will receive a smaller benefit from Nav, which corresponds to 3% of the total number of beneficiaries in 2019.

Cuts in unemployment benefits

The reduction in the amount of unemployment benefit will most affect those who have recently worked under precarious conditions. Until now, the unemployment benefit was calculated on the basis of the average income for the last three years, where it could be up to 6G, ie NOK 581. As of January 298, these rules have changed because now income from each year is taken into account, and those above 1G will not be taken into account. In practice, this means that if an employee had a high income in one year, and it was zero in the previous two years, then he will be entitled to a lower benefit, according to the new system.

These are not the first changes

ABC Nyhter points out that this is not the first time that the government wants to lower or cut unemployment benefits. In 2018, the budget also assumed cuts in benefits for the unemployed and their number also amounted to 3550 people. As a result of this, all this number of people lost their right to unemployment benefit last year.

Read also: Smaller unemployment benefits - new rules for calculating contributions

It could be even worse

Arild Grande, who is a member of the Labor and Social Affairs Committee of the Labor Party, believes that the Norwegian government is constantly looking for restrictions benefit payments social. Additionally, he adds that he is afraid that this is only the beginning, because in the future the government will look for more and more opportunities to cut social benefit payments and the entire policy. Even though there are fewer unemployed people in the labor market today than after the oil crisis, many people still need this benefit. The number of people whose benefits are withdrawn or reduced without prior notice to Nav is constantly increasing.

Read also: Nav workers at risk

Great saving of the state

Christl Kvam, Secretary of State at the Ministry of Labor and Social Affairs, writes to Dagsavisen that the main aim of the amendment is to simplify the rules so that they correspond, inter alia, to the AAP. It also adds that beneficiaries who have not earned 6G in the last three years will not experience any change in the rules. The ministry also informs that as a result of the changes, the government will manage to save up to NOK 23 million in 2019 alone. According to the assumptions, each beneficiary covered by the new rules will receive on average NOK 6000 less for an average of 21 weeks or approximately NOK 300 less per week.

Changes in the method of calculating unemployment benefits, which came into effect on January 1, will lead to a reduction benefits to as many as 3 people. As a result of these actions, the Norwegian government will be able to save large amounts of money. Will it be good for people? How are benefits calculated now? Read the article above!

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