Greece Launches New Unemployment Benefit

Greece has introduced a new unemployment benefit, selecting approximately 15,000 job seekers at random to receive support from the Public Employment Service, on Friday, March 28.

The pilot program does not require a separate application; instead, it utilizes the same application submitted for the existing unemployment benefit through the body’s online services.

The selection was made via an automated process that identified potential beneficiaries using a specialized algorithm. This system calculates the benefit amount under both the current and new frameworks, ensuring recipients receive either the same or a higher amount under the pilot scheme. Supporting documents remain unchanged and are obtained automatically.

The revamped unemployment benefit aims to:

• Enhance Support and Encourage Employment: The benefit is front-loaded, offering higher payments during the first six months before gradually decreasing. This structure provides stronger financial aid initially while incentivizing a quicker return to work.

• Increase Fairness and Proportionality: The new model ties benefit amounts to previous social security contributions, aligning Greece with 25 out of 27 EU countries. Under the current system, workers with vastly different earnings histories receive the same unemployment benefit. The new structure aims to correct this imbalance.

• Improve Efficiency and Simplification: The long-term unemployment benefit will be merged with the new system, streamlining processes and enhancing the program’s overall effectiveness.
With this initiative, Greece seeks to modernize its unemployment support framework, making it more responsive, equitable, and efficient.