unemployment benefit


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unemployment benefit

1. (in Britain, formerly) a regular payment to a person who is out of work: replaced by jobseeker's allowance in 1996
2. (in New Zealand) a means-tested monetary benefit paid weekly by the Social Security Department to the unemployed

Unemployment Benefit

 

in capitalist countries, special monetary aid to persons who are out of work as a result of unemployment. Unemployment benefits have been introduced in 30 capitalist countries. As a rule, agricultural workers are not eligible. Unemployment benefits are usually financed in equal amounts by the contributions of workers and employers.

In Italy and the USA, only employers contribute to unemployment benefits. In Australia, New Zealand, and Luxembourg, benefits are paid for entirely out of state funds only to those unemployed who have undergone a thorough investigation of need and are classified as having no other means of subsistence. In Denmark, Finland, and Sweden, benefits are paid only to members of special funds set up on a voluntary basis by trade unions. Contributions to these funds are financed fully by the workers, although the state does provide some subsidies.

Under each system, unemployment benefits do not cover the entire period of unemployment. No benefits are paid during the waiting period, or the first two to seven days. Usually the maximum pay period is three to six months and the benefits usually amount to 30-60 percent of wages earned. The worker must make contributions for a certain period of time before he is eligible to receive benefits. To continue being eligible, he must register regularly with the unemployment office (labor exchange) and must actively look for work on his own. The major reasons for disqualification from benefits are discharge for misconduct, participating in a strike, voluntary termination of employment, and refusal of suitable work.

References in periodicals archive ?
In conclusion, the court confirmed that a wholly unemployed frontier worker can claim unemployment benefits only in his country of residence except in cases where the transitory system of the 2004 regulation is applicable.
WASHINGTON: Fewer Americans applied for unemployment benefits last week, partly reversing a sharp jump in applications the previous week.
The number of people who filed for unemployment benefit was 39,112 in March 2010.
Faced by an increasing trend in the number of unemployed, including UI recipients and the long-term unemployed, Slovenia in October 1998 reformed its unemployment benefit system.
The continued decline in the number of people making initial claims for unemployment benefit comes as the administration of Barack Obama, the US president, defends itself against claims by the opposition that a $787bn economic stimulus package has done little to shore up the flagging economy.
In May the number of unemployment benefit applicants totaled 88,688, which jumped to 134,578 in June and then shrank to 110,000 in July.
Under current law, businesses are required to pay more into the UC Trust Fund when the Trust Fund balance falls below 3.7 percent of taxable payrolls to ensure sufficient funds are available to cover state unemployment benefit obligations.
The unemployment benefit system has been reformed but inactivity traps remain
In November 2001, the two working groups established to come up with proposals for reform of pensions and the unemployment benefit systems submitted their proposals to the government (Working groups on reform of pension and unemployment benefits, 2001; Ministry of Finance, 2001c).
This section constructs a monopoly union model which includes both elements of money illusion of the union member and unemployment benefit indexation.
The number of people claiming unemployment benefit in Birmingham fell last month for the first time this year, bringing the rate down to 8.9 per cent.
First, it is not wise to reduce the duration of unemployment benefits when the length of unemployment spells are on the rise, unless (i) unemployment is still low and there is the administrative capacity to implement active labour-market policies on a wide scale or a) there are income support schemes of the last resort in place and an administration capable of cost-effectively enforcing work-tests for those falling off unemployment benefit compensation rolls.

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