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74-464: The costs of the program are covered by contributions to the State Fund in the form of SDI tax paid by employees, optionally by employers. Employee contributions to the state fund are deductible as state taxes. The table below summarizes the contribution rates, taxable wage limits and maximum withholdings per employee since 1996: The plan provides up to one year of tax-free benefits equal to 55% of

148-488: A Democrat from the same state, introduced H.R. 2339, the Family Income Responding to Significant Transitions (FIRST) Act, which would provide federal grants to states with existing paid family leave laws to implement and administer their paid family leave programs, and would encourage other states to develop their own paid family leave programs. In order to qualify for PFL, employees must participate in

222-671: A 2007 survey of California adults, only 28.1% were aware of the PFL program. A 2019 study found that Paid Family Leave policy in California lead to increases in "the overall duration of breastfeeding by nearly 18 days, and the likelihood of breastfeeding for at least six months by 5 percentage points." Unemployment benefit Unemployment benefits , also called unemployment insurance , unemployment payment , unemployment compensation , or simply unemployment , are payments made by governmental bodies to unemployed people. Depending on

296-459: A benefit of 50% of the minimum wage to supplement the employee's income. The UI also provides financial assistance and capacity-building programs for unemployed or disabled individuals who want to start their own businesses. Armenia also has a Paid Public Works program that provides jobseekers and the disabled with temporary public employment for three months. In Australia , social security benefits, including unemployment benefits, are funded through

370-578: A day since 1994, and there have been calls to raise this by politicians and NGO groups. On 22 February 2021, the Prime Minister of Australia, Scott Morrison , announced that the JobSeeker base rate would be increased by A$ 50 a fortnight from April 2021. It is also intended to increase the threshold amount recipients can earn before their payment starts to be reduced. The system in Australia

444-493: A degree and two years of full-time work. The latter requires participation in training, education, or other employment support, which may be mandated on pain of losing the benefit, but may be paid after the regular benefits have been either maxed out or not available. Although the unemployment funds handle the payments, most of the funding is from taxes and compulsory tax-like unemployment insurance charges. Regardless of whether benefits are paid by Kela or from an unemployment fund,

518-639: A form of unemployment benefits. This includes all 37 OECD countries. Among OECD countries for a hypothetical 40-year-old unemployment benefit applicant, the US and Slovakia are the least generous for potential benefit duration lengths, with PBD of six months. More generous OECD countries are Sweden (35 months PBD) and Iceland (36 months PBD); in Belgium, the PBD is indefinite. Armenia 's Unemployment Insurance (UI) scheme has been in force since 1991. In 2005, Armenia adopted

592-624: A maximum per week, for a total of up to six weeks. The Paid Family Leave program is administered by the State Disability Insurance (SDI) program of the Employment Development Department . Benefits commenced on July 1, 2004. The PFL insurance program is fully funded by employees' contributions, similar to the SDI program. The statute states that PFL must be taken concurrently with leave under

666-411: A parent or parents, the basic rate is A$ 91.60 per week. For over-18- to 20-year-olds living at home this increases to A$ 110.15 per week. For those aged 18–20 not living at home the rate is A$ 167.35 per week. There are special rates for those with partners and/or children. The second kind of payment is called ' JobSeeker Payment ' (called Newstart until 20 June 2020) and is paid to unemployed people over

740-462: A percentage of the applicant's former income. A typical replacement percentage is 50–65%. Some countries offer much higher levels of wage replacement, such as the Netherlands (75%), Luxembourg (80%), and Denmark (90%). There are often caps on the maximum benefit level, ranging from 33% of a country's average wage (Turkey) to 227% of its average wage (France). The average maximum benefit level

814-519: A sharp fall in Liberal support in the Atlantic provinces in the 1997 election . In 2001, the federal government increased parental leave from 10 to 35 weeks, which was added to preexisting maternity benefits of 15 weeks. In 2004, it allowed workers to take EI for compassionate care leave while caring for a dying relative, although the strict conditions imposed make this a little used benefit. In 2006,

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888-503: A sick or newly born child. Of those parents surveyed, only 18% had heard of the program and 5% had used it. In a survey of 253 employers and 500 employees, 89% of employers said they experienced no noticeable effect or a positive effect from the program, with larger employers having a more favorable view than small employers, likely since they are likely to already provide paid family leave. Sixty percent of employers reported saving on costs by coordinating their own sick leave with PFL. In

962-416: A sliding scale function of the applicant's past employment history and age, or it may be a set length for all applicants. In Argentina, for example, six months of work history results in a PBD of two months, while 36 months or more of work history can result in a PBD of a full year, with an extra six months of PBD to applicants over the age of 45. Most countries calculate the amount of unemployment benefit as

1036-504: A subject in cases before the Federal Constitutional Court . The possibility of sanctions cutting someone's benefits to zero was declared unconstitutional in 2018. In July 2022 Germany's government implemented a one-year moratorium on sanctions, permitting only a 10% cut for repeatedly missing appointments ( Meldeversäumnis ). This measure was taken as a precursor to restructuring type II unemployment benefits into

1110-563: A tool to help calculate benefit payment amounts. Benefits are set at 70% of income for low income earners and 60% for middle and high income earners, however there is a maximum weekly benefit that is tied to the State Average Weekly Wage corresponding to the year of the claim. For 2019, this maximum is $ 1252 while the lower range of weekly benefits is $ 50. To qualify for the minimum weekly amount ($ 50), an individual must have at least $ 300 of wages (or $ 75 per quarter) in

1184-551: A waiting period before being able to receive benefits. In the US, there is no waiting period on a temporary basis currently due to the COVID-19 pandemic, but in many states there is a waiting week. In Germany and Belgium, there is no waiting week. The current waiting period in Canada is seven days. Countries implement varied potential benefit durations (PBD), which is how long an individual is eligible to receive benefits. The PBD may be

1258-440: Is 77% among OECD countries. Most benefit payments are constant over the course of the PBD, though countries such as the Netherlands, Sweden, Hungary, Slovenia, Spain, and Italy have a declining benefit path, in which the wage replacement percentage decreases over time. Most countries require those receiving unemployment benefits to search for a new job, and can require documentation of job search activities. Benefits may be cut if

1332-653: Is also known as the Family Temporary Disability Insurance ( FTDI ) program, is a law enacted in 2002 that extends unemployment disability compensation to cover individuals who take time off work to care for a seriously ill family member or bond with a new minor child. If eligible, you can receive benefit payments for up to eight weeks. Payments are about 60 to 70 percent of your weekly wages earned 5 to 18 months before your claim start date. You will receive payments by debit card or check. Benefits equal approximately 70% of earnings and have

1406-620: Is considered a state income tax. In 2002, California enacted the Paid Family Leave (PFL) insurance program, also known as the Family Temporary Disability Insurance (FTDI) program, which extends unemployment disability compensation to cover individuals who take time off work to care for a seriously ill family member or bond with a new child. Paid Family Leave (California) California 's Paid Family Leave ( PFL ) insurance program, which

1480-581: Is designed to support recipients no matter how long they have been unemployed. In recent years the former Coalition government under John Howard has increased the requirements of the Activity Agreement, providing for controversial schemes such as Work for the Dole , which requires that people on benefits for six months or longer work voluntarily for a community organisation regardless of whether such work increases their skills or job prospects. Since

1554-759: Is informally called "being on the dole". "Dole" here is an archaic expression meaning "one's allotted portion", from the synonymous Old English word dāl . In Australia, a " dole bludger " is someone on unemployment benefits who makes no effort to find work. The first modern unemployment benefit scheme was introduced in the United Kingdom with the National Insurance Act 1911 , under the Liberal Party government of H. H. Asquith . The popular measures were introduced to stave off poverty inflicted through unemployment, though they also gave

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1628-523: Is no government contribution to this fund. The amount a person receives and how long they can stay on EI varies with their previous salary, how long they were working, and the unemployment rate in their area. The EI system is managed by Service Canada , a service delivery network reporting to the Minister of Employment and Social Development Canada . A bit over half of EI benefits are paid in Ontario and

1702-610: Is no recognition of professional qualifications: An academic has to join the menial workforce, regardless of the fact that their potential might be wasted in that industry. Neither are one's personal religious or ethical concerns relevant: Prostitution is legal in Germany (although as of 2021 no job centre has urged any beneficiary to engage in prostitution). In exchange for that, beneficiaries are assisted in that process, e.g. by reimbursing travel expenses to interviews, receiving (free of charge) training in order to increase their chances on

1776-527: Is not a requirement. Due to wage dumping and other labour market dynamics, a large number of working beneficiaries supplement their monthly income. They have the same obligations as non-working beneficiaries. People receiving benefits are obligated to cease their eligibility at all costs, but at least minimise their dependence on welfare until no money would be paid. That means, they are obliged to seek for jobs nationwide, and accept every job offered, otherwise sanctions (retrenchment) may be applied. There

1850-510: Is paid to young people aged 16–20 (or 15, if deemed to meet the criteria for being considered 'independent' by Centrelink). Youth Allowance is also paid to full-time students aged 16–24, and to full-time Australian Apprenticeship workers aged 16–24. People aged below 18 who have not completed their high school education, are usually required to be in full-time education, undertaking an apprenticeship or doing training to be eligible for Youth Allowance. For single people under 18 years of age living with

1924-595: Is responsible for 3 benefits: ARE, ACA and ASR The main ARE scheme requires a minimum of 122 days membership in the preceding 24 months and certain other requirements before any claims can be made. Employers pay a contribution on top of the pre-tax income of their employees, which together with the employee contribution, fund the scheme. The maximum unemployment benefit is (as of March 2009) 57.4% of €162 per day (Social security contributions ceiling in 2011), or €6900 per month. Claimants receive 57,4% of their average daily salary of

1998-454: Is the first-tier program supporting unemployed people. It is designed like an insurance, involuntary unemployment through no personal fault being the "event of damage". It is therefore also known as unemployment insurance ( Arbeitslosenversicherung ). In order to qualify, the unemployed person All workers with a regular employment contract ( abhängig Beschäftigte ), except freelancers and certain civil servants ( Beamte ), contribute to

2072-448: Is therefore €2964 (in 2012). If the benefits fall below the poverty line it is possible to supplement type I unemployment benefits with type II benefits if its conditions are met as well. Type I unemployment benefits are only granted for a limited period of time, the minimum being 6 months, with a maximum of 24 months in the case of old and long-term insured people. This takes account for the difficulty older people face when re-entering

2146-632: The Labor government under Kevin Rudd was elected in 2008, the length of unemployment before one is required to fulfill the requirements of the Activity Agreement (renamed the Employment Pathway Plan) has increased from six to 12 months. There are other options available as alternatives to the Work for the Dole scheme, such as undertaking part-time work or study and training, the basic premise of

2220-437: The State Disability Insurance (SDI) Program (or a voluntary plan in lieu of SDI). Benefits under the program include the following: An employee may not receive PFL insurance benefits if he or she is also eligible for or already receiving State Disability Insurance, Unemployment Compensation Insurance , or Workers' Compensation . An employer may require employees to take up to two weeks earned, but unused, vacation prior to

2294-628: The federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), both of which provide for twelve weeks of unpaid leave in a twelve-month period. In other words, the FMLA and CFRA offer job protection for up to twelve weeks of family leave whereas PFL offers compensation for up to eight weeks. In 2002, after an extended campaign by the California Labor Federation, AFL-CIO and

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2368-520: The 2009, 2010 and 2011 annual deficits by increasing EI premiums. On 11 December 2008, the Supreme Court of Canada rejected a court challenge launched against the federal government by two Quebec unions, who argued that EI funds had been misappropriated by the government. The level of benefit is set between the minimum wage and the minimum living allowance by individual provinces , autonomous regions and municipalities . Each Member State of

2442-476: The Act included Robert Laurie Morant and William Braithwaite. By the time of its implementation, the benefits were criticized by communist parties, who saw such insurance as a means to prevent workers from starting a revolution, while employers and tories sometimes saw it as a "necessary evil". The scheme was based on actuarial principles and was funded by fixed amounts from workers, employers, and taxpayers. It

2516-637: The California Work & Family Coalition led at the time by the Labor Project for Working Families, California was the first state to pass a law requiring the Paid Family Leave program. As of mid-2008, the only other states that had passed laws to offer paid family leave benefits were Washington and New Jersey . In 2009, five years after California's paid family leave law first went into effect, Congresswoman Lynn Woolsey ,

2590-590: The Canadian provinces. A significant part of the federal fiscal surplus of the Jean Chrétien and Paul Martin years came from the EI system. Premiums were reduced much less than falling expenditures – producing, from 1994 onwards, EI surpluses of several billion dollars per year, which were added to general government revenue. The cumulative EI surplus stood at $ 57 billion at 31 March 2008, nearly four times

2664-505: The Employment Pathway Plan being to keep the welfare recipient active and involved in seeking full-time work. For people renting their accommodation, unemployment benefits are supplemented by Rent Assistance, which, for single people as at 20 September 2021, begins to be paid when fortnightly rent is more than A$ 124.60. Rent Assistance is paid as a proportion of total rent paid (75 cents per dollar paid over A$ 124.60 up to

2738-485: The European Union has its own system and, in general, a worker should claim unemployment benefits in the country where they last worked. For a person working in a country other than their country of residency (a cross-border worker), they will have to claim benefits in their country of residence. Two systems run in parallel, combining a Ghent system and a minimum level of support provided by Kela , an agency of

2812-589: The Liberal Party the added benefit of combatting the Labour Party's increasing influence among the country's working-class population. The Act gave the British working classes a contributory system of insurance against illness and unemployment. It only applied to wage earners, however, and their families and the unwaged had to rely on other sources of support, if any. Key figures in the implementation of

2886-510: The Province of Quebec opted out of the federal EI scheme in respect of maternity, parental and adoption benefits, in order to provide more generous benefits for all workers in that province, including self-employed workers. Total EI spending was $ 19.677 billion for 2011–2012 (figures in Canadian dollars ). Employers contribute 1.4 times the amount of employee premiums. Since 1990, there

2960-567: The United Kingdom. The dole system provided 39 weeks of unemployment benefits to over 11 million workers—practically the entire civilian working population except domestic service, farmworkers, railroad men, and civil servants. Unemployment benefits were introduced in Germany in 1927, and in most European countries in the period after the Second World War with the expansion of the welfare state . Unemployment insurance in

3034-592: The United States originated in Wisconsin in 1932. Through the Social Security Act of 1935, the federal government of the United States effectively encouraged the individual states to adopt unemployment insurance plans. Eligibility criteria for unemployment benefits typically factor in the applicant's employment history and their reason for being unemployed. Once approved, there is sometimes

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3108-596: The Western provinces but EI is especially important in the Atlantic provinces, which have higher rates of unemployment. Many Atlantic workers are also employed in seasonal work such as fishing, forestry or tourism and go on EI over the winter when there is no work. There are special rules for fishermen making it easier for them to collect EI. EI also pays for maternity and parental leave , compassionate care leave , and illness coverage. The program also pays for retraining programs (EI Part II) through labour market agreements with

3182-580: The adoption of the 1971 UI Act. At the same time, the federal government gradually reduced its financial contribution, eliminating it entirely by 1990. The EI system was again cut by the Progressive Conservatives in 1990 and 1993, then by the Liberals in 1994 and 1996. Amendments made it harder to qualify by increasing the time needed to be worked, although seasonal claimants (who work long hours over short periods) turned out to gain from

3256-539: The age of 21 and under the pension eligibility age. To receive a JobSeeker Payment, recipients must be unemployed, be prepared to enter into an Employment Pathway Plan (previously called an Activity Agreement) by which they agree to undertake certain activities to increase their opportunities for employment, be Australian Residents and satisfy the income test (which limits weekly income to A$ 32 per week before benefits begin to reduce, until one's income reaches A$ 397.42 per week at which point no unemployment benefits are paid) and

3330-489: The amount needed to cover the extra costs paid during a recession. This drew criticism from Opposition parties and from business and labour groups, and has remained a recurring issue of the public debate. The Conservative Party , chose not to recognize those EI surpluses after being elected in 2006 . Instead, the Conservative government cancelled the EI surpluses entirely in 2010, and required EI contributors to make up

3404-412: The applicant does not fulfil the search requirements, or turns down a job offer deemed acceptable by the unemployment benefits agency. Agencies may also provide resources, training, or education for job seekers. Some countries allow beneficiaries to accept part-time jobs without losing benefit eligibility, which can counter the disincentive of unemployment benefits to accepting jobs that do not fully replace

3478-509: The assets test (an eligible recipient can have assets of up to A$ 161,500 if he or she owns a home before the allowance begins to reduce and $ 278,500 if he or she does do not own a home). The rate of allowance as of 12 January 2010 for single people without children was A$ 228 per week, paid fortnightly. (This does not include supplemental payments such as Rent Assistance or Energy Supplement. ) Different rates apply to people with partners and/or children. Effectively, people have had to survive on $ 39

3552-401: The base period, which covers 12 months and is divided into four quarters of three months each. In the first year of the program's passage, only 138,000 people applied for benefits. This was less than half of California's estimate for number of benefit recipients, 300,000. Of those claims, 88% were for bonding with a new child while 12% were for caring for an ill family member. Females dominated

3626-444: The claims, making up 83% of new child claims and 70% of care claims. Although the low number of claims could have been due to the program being relatively unknown, benefits of the program being too low may also have had an impact. In a study conducted in California and Illinois of parents of chronically ill children before (2003-2004) and after (2005–2006) the passage of PFL, no difference was observed in time taken off work to care for

3700-465: The country and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary. Unemployment benefits are generally given only to those registering as becoming unemployed through no fault of their own, and often on conditions ensuring that they seek work. In British English, unemployment benefits are also colloquially referred to as "the dole "; receiving benefits

3774-622: The employee’s initial receipt of PFL benefits. The PFL does not offer job security stipulations. Instead, it relies on the limited job security already provided by federal and state laws: an employer is only required to grant time off and to hold a job for an employee if the employer is covered by the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA). The California Family Rights Act offers twelve weeks of unpaid leave for employees of firms with more than 20 workers. The California Employment Development Department offers

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3848-406: The former wages. Unemployment benefits are typically funded by payroll taxes on employers and employees. This can be supplemented by the government's general tax revenue, which can occur periodically or in response to economic downturn. Contribution rates are usually between 1 and 3% of gross earnings, and are usually split between the employer and employee. Across the world, 72 countries offer

3922-570: The grant altogether, virtually pushing them into poverty, homelessness and bankruptcy, as there are no other precautions installed. Germany does not have an EBT (electronic benefits transfer) card system in place and, instead, disburses welfare in cash or via direct deposit into the recipient's bank account. As of 2022 a single person without children receives at most €449 per month at free disposal intended to cover living expenses, plus costs for reasonable accommodation (rent and heating). People granted benefits are automatically insured at reduced rates in

3996-544: The individual does not qualify for any unemployment benefit he may still be eligible for the housing benefit ( asumistuki ) from Kela and municipal social welfare provisions ( toimeentulotuki ). They are not unemployment benefits and depend on household income, but they have in practice become the basic income of many long-term unemployed. France uses a quasi Ghent system , under which unemployment benefits are distributed by an independent agency (UNEDIC) in which unions and Employer organisations are equally represented. UNEDIC

4070-487: The job market in Germany. In contrast to type II unemployment benefits, there is no means test. However, it is necessary to remain unemployed while seeking employment. In this context unemployment is defined as working less than 15 hours a week. Type II unemployment benefits ( Arbeitslosengeld II , also referred to as Hartz IV or Bürgergeld colloquially) are an open-ended welfare program intended to ensure people do not fall into poverty. Despite its name, unemployment

4144-425: The labour market, or subsidising moving expenses once an employment contract has been signed but the place of work requires relocation as it is further than the acceptable daily commute duration (at most 3 hrs a day). If they do not voluntarily participate in training, they may be obliged by administrative action. Beneficiaries not complying with orders can be sanctioned by pruning their allowance and eventually revoking

4218-502: The last 12 months preceding unemployment with the average amount being €1,111 per month. In France, tax and other payroll taxes are paid on unemployment benefits. In 2011, claimants received the allowance for an average 291 days. Germany has a two-tiered system of unemployment benefits. Their common goal is to eventually cease dependence on unemployment benefits entirely. Both programs assist their beneficiaries to varying degrees through Type I unemployment benefits ( Arbeitslosengeld I )

4292-612: The law on Employment of the Population and Social Protection in Case of Unemployment, which provided a legal framework to the Unemployment Insurance and active labour policies. Armenia's UI is a contributory program, which is obligatory for public and formal private sectors, as well as the self-employed. To be eligible for benefits, the claimant must be unemployed as a result of business reorganization, staff reduction, or

4366-410: The maximum). The maximum amount of rent assistance payable is A$ 139.60 per fortnight, and is paid when the total weekly rent exceeds A$ 310.73 per fortnight. Different rates apply to people with partners and/or children, or who are sharing accommodation. In Canada , the system is known as "Employment Insurance" (EI, French : Prestations d’assurance-emploi ). Formerly called "Unemployment Insurance",

4440-542: The monthly unemployment benefit will get a payment of 18,000 AMD per month for a minimum of 6 months and a maximum of 12 months. The UI also includes a scheme to help employers hire people who are unemployed with at least 35 years of UI contributions but have not reached retirement age; unemployed for more than three years; returning from corrective or medical institutions; returning from mandatory military service; disabled; refugees; or are 16 years of age and newly eligible to work. Employers who hire these groups are eligible for

4514-489: The name was changed in 1996. In 2024, Canadian workers paid premiums of 1.66% of insured earnings in return for benefits if they lose their jobs. The Employment and Social Insurance Act was passed in 1935 during the Great Depression by the government of R. B. Bennett as an attempted Canadian unemployment insurance program. It was, however, ruled unconstitutional by the Supreme Court of Canada as unemployment

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4588-456: The national government. Unionization rates are high (70%), and union membership comes with membership in an unemployment fund. Additionally, there are non-union unemployment funds. Usually, benefits require 26 weeks of 18 hours per week on average, and the unemployment benefit is 60% of the salary and lasts for 500 days. When this is not available, Kela can pay either regular unemployment benefit or labour market subsidy benefits. The former requires

4662-436: The national health and nursing care insurances. The national pension insurance accounts the time living on benefits, but it does not increase the pension entitlement since in 2011 the federal government stopped paying €205 monthly. Type II unemployment benefits have been heavily criticized since their introduction. As Type II benefits are meant to ensure a minimum subsistence level, the mechanism of sanctions has repeatedly been

4736-433: The recipient's average gross (pre-tax) income in their highest earning base period quarter. The minimum benefit is $ 50 per week, and the maximum benefit is updated each year. The "base period" for determining benefits is defined as 12 months divided into four consecutive quarters, excluding the quarter immediately prior - i.e., the lookback period is ~17 months pre-disability up to ~5 months pre-disability. For example, assuming

4810-435: The recipient's highest quarterly earnings were $ 3,900, dividing by 13 weeks gives an average pay rate of $ 300 per week. At 55% of this, the benefit amount would be $ 165 per week. For 2018–2021, the benefit was changed to 60% of regular weekly salary if earning above $ 23,972 annually and 70% of regular weekly salary if earning less than that. Maximum weekly benefit SDI is deductible on federal returns (Schedule A) because it

4884-546: The replacement, in 1996, of weeks by hours to qualify. The ratio of beneficiaries to unemployed, after having stood at around 40% for many years, rose somewhat during the 2009 recession but then fell back again to the low 40s. Some unemployed persons are not covered for benefits (e.g. self-employed workers), while others may have exhausted their benefits, did not work long enough to qualify, or quit or were dismissed from their job. The length of time one could take EI has also been cut repeatedly. The 1994 and 1996 changes contributed to

4958-509: The salary paid to the employee. The contribution level was reduced from 3.25% for employees and employers as part of labour market reforms known as Hartz. Contributions are paid only on earnings up to the social security ceiling (2012: 5,600 EUR). Furthermore, the system is supported by funds from the federal budget. Claimants get 60% of their previous net salary (capped at the social security ceiling), or 67% for claimants with children (as long as beneficiary of child benefit ). The maximum benefit

5032-401: The system. It is financed by contributions from employees and employers. This is in stark contrast to FUTA in the US and other systems, where only employers make contributions. Participation (and thus contributions) are generally mandatory for both employees and employers. Employees pay 1.5% of their gross salary below the social security threshold and employers pay 1.5% contribution on top of

5106-640: The taxation system. There is no compulsory national unemployment insurance fund. Rather, benefits are funded in the annual Federal Budget by the National Treasury and are administrated and distributed throughout the nation by the government agency, Centrelink . Benefit rates are indexed to the Consumer Price Index and are adjusted twice a year according to inflation or deflation. There are two types of payment available to those experiencing unemployment. The first, called Youth Allowance ,

5180-460: The termination of a collective bargaining agreement. To be eligible, applicants must have contributed for at least 12 months prior to unemployment or be actively looking for work after a long period of unemployment. The UI is also available to first-time job seekers. Those who do not qualify for the monthly payment are nonetheless eligible for the UI scheme's capacity building programs. Those who qualify for

5254-514: The unemployed person receives assistance from the Työ- ja elinkeinokeskus ( TE-keskus , or the "Work and Livelihood Centre"), a government agency which helps people to find jobs and employers to find workers. In order to be considered unemployed, the seeker must register at the TE-keskus as unemployed. If the jobseeker does not have degree, the agency can require the job seeker to apply to a school. If

5328-474: Was extended dramatically by Pierre Trudeau in 1971 making it much easier to get. The system was sometimes called the 10/42, because one had to work for 10 weeks to get benefits for the other 42 weeks of the year. It was also in 1971 that the UI program was first opened up to maternity and sickness benefits, for 15 weeks in each case. The generosity of the Canadian UI program was progressively reduced after

5402-514: Was judged to be an insurance matter falling under provincial responsibility. After a constitutional amendment was agreed to by all of the provinces, a reference to "Unemployment Insurance" was added to the matters falling under federal authority under the Constitution Act, 1867 , and the first Canadian system was adopted in 1940. Because of these problems Canada was the last major Western country to bring in an employment insurance system. It

5476-439: Was restricted to particular industries, particularly more volatile ones like shipbuilding, and did not make provision for any dependants. After one week of unemployment, a worker was eligible to receive seven shillings per week for up to 15 weeks in a year. By 1913, 2.3 million were insured under the unemployment benefit program. The Unemployment Insurance Act 1920 created the dole system of payments for unemployed workers in

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