Belgium to abolish indefinite unemployment benefits

Belgium is preparing to make changes to the indefinite unemployment benefit system by limiting it to 2 years. Deputy Prime Minister and Minister of Labor David Clarinval announced that changes will be made to the country’s unemployment benefit system. According to the new plan of the federal government, Clarinval stated that those who have been receiving unemployment benefits for more than 2 years will lose their rights, affecting over 100,000 people in the country. Clarinval pointed out that the 2-year limit will not apply to individuals aged 55 and older who have worked a sufficient amount of time. He mentioned that those who have worked for at least one year in the past three years will have the right to receive unemployment assistance for 1 year, with an additional month granted for each additional 4 months, capping at 2 years. Currently, Belgium does not limit the duration of unemployment benefits. An unemployed individual starts receiving a benefit equivalent to 65% of their last salary, with a maximum limit. Over time, the unemployment benefit decreases but does not cease entirely. Data shows that there are approximately 320,000 unemployed individuals under the age of 55 in Belgium, with over 100,000 of them receiving unemployment benefits for more than 2 years. The new Belgian government, facing high public debt and budget deficits, plans to reduce various social supports like unemployment and sickness benefits.