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The government proposes the removal of increased earnings-related allowance and higher mobility allowance
The government proposes the abolition of increased earnings-related allowance. Currently, a supplement is paid for the duration of services promoting employment (TE services), such as labour market training, work trials, and job-seeking coaching. At the same time, the mobility allowance supplement, available for commutes exceeding 200 kilometres to a new job, would also be discontinued. These legislative changes are scheduled to come into effect on 1 January 2025.
There are no proposed changes to the €9 expense allowance or the €18 increased expense allowance paid during TE services.
Earnings-related increment
With the proposed changes, unemployment funds would no longer pay the earnings-related increment of the daily allowance to those participating in TE services. This means that the unemployment benefit paid during participation in services would be the same as that paid during periods of unemployment.
Under the current legislation, the earnings-related increment can be paid for a maximum of 200 days to those participating in TE services.
Implementation of the change
The government proposes that the earnings-related increment could still be paid for up to 200 days if the service starts no later than 31 December 2024.
If TE services are organised in separate segments that are not continuous, the earnings-related increment would not be paid for any segments starting on or after 1 January 2025.
Mobility allowance supplement
The government also proposes removing the mobility allowance supplement. This would mean that in future, the mobility allowance would always be equivalent to the basic unemployment allowance.
Currently, the mobility allowance can be paid at an increased rate if the new job or related training location is more than 200 kilometres away. In 2024, the supplement is €5.29 per day.
Implementation of the change
The government proposes that the mobility allowance supplement would be abolished from 1 January 2025. However, it could still be paid if the job or related training, for which the mobility allowance was granted, begins no later than 31 December 2024.
