DutchNews.nl - Top civil servant calls for jobless benefit cuts

Top civil servant calls for jobless benefit cuts

Thursday 07 January 2010

The length of time people can claim unemployment benefit should be cut to encourage them to find work as quickly as possible, the most senior civil servant at the economic affairs ministry said in his traditional New Year article, the NRC reports on Thursday.

Writing in the economists' magazine ESB, Chris Buijink said a reduction in the length of time income-related jobless benefit is paid would be an important stimulus to find new work, particularly among older workers.

Unemployment benefit is currently paid for a maximum 38 months, depending on how long someone has had a job. 'Compared with other EU countries, the unemployed in the Netherlands still get jobless benefit for a long time,' Buijink was reported as saying.

Early pension

'The long slide towards a pension must be made less attractive. Unemployment is still an attractive way out for many older workers,' he said. While there have been improvements in the job take-up rate among older workers, just 26% of people aged 60 to 64 still have a job, he pointed out.

Jobless benefit (WW) was reduced from five years to three years two months in 2005. Claimants are entitled to 75% of their last earned salary with a maximum of €185.46 a day for two months. The benefit is then cut to 70%.

Buijink also suggested making the level of jobless benefits be partly dependent on the education level of the worker, the Telegraaf said in its report.

Last year, Buijink used his ESB article to call for a increase in the state pension age to 67.

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Readers' comments

and how long does an out of work MP get pay related benefit for?

By anon | January 7, 2010 3:19 PM

Yep there is a lot of people who sit home , maybe cuz there is no reply to their applications...

By Dav | January 7, 2010 4:00 PM

I don't see what the education level of the worker should have to do with the level of benefits they get, unless it means that someone with a lower education gets relatively more assistance, for example 70% of last pay vs say 50% for some college educated person.

Otherwise, I would find that rather odious.

Even still, unemployment here way to profitable. Not saying it should be like the US or whatnot, but still, you can get paid handsomely do effectively sit around.

By Kris | January 7, 2010 4:33 PM

Buijink should get real. "just 26% of people aged 60 to 64 still have a job." Is he aware that during the global recession it is many of the older (more expensive?) workers who have been targeted for the chop. Which company in these still risky times is going to employ someone in their 60s? These days 40 years old is the new 60 year old!

By Andrew | January 7, 2010 4:43 PM

Where is all the work, wish Chris Buijink would say.

Something similar happened in UK a few years back, and it's been done again, and they are thinking of doing it again, and still cannot see they are now paying the extra cost, and will be for a very long time!

By Gerard | January 7, 2010 5:06 PM

The entitlement is dependant on the number of years that you have worked. The number of years that you mention are the absolute maximum only for people who have already worked several decades.The rest just gets a few monhts of benefits. This is how journalists give the wrong impression of Holland as somekind of walhalla for profeteers.

By tante truus | January 7, 2010 5:30 PM

Paying someone 70% of their old salary for 3 years is a luxury this country can no longer afford. Necessity is the mother of all invention, and if you're being paid for 3 years what motivation is there for you to find work? None. Cut this to 6 months maximum immediately.

By Rich | January 7, 2010 6:06 PM

Good point Anon, and I'm sure benefits won't have anything to do with age or the ability to do their their job either

By eduarda | January 7, 2010 10:50 PM

The unemployment benefits the unemployed worker receives is money he or she has paid into the system over the years... they are entitled to it, it's their money.

By Buzzer | January 8, 2010 8:03 AM

to Kris and others..i agree that some people get advantage of the unemployment benefits but that means that it should be better controlled. THe unempoyment benefit is PAID by each employee, as part of his BRUTTO salary. if they didnt keep this amount of money (for which i was not asked) then they could do anything they wanted. I pay 180 euros per month from my salary for this purpose and i pay it for the day i need it and of course i didnt have a choice not to pay it. So it is better the goverment to place better controls in who is getting the money rather than reducing it.

By kos | January 8, 2010 8:30 AM

Being an expat I'm quite glad that this person has decided to do this. There is a limit to how many benefits one can get even though I'm not looking for the lack of benefits like America, but for a medium balanced benefit that gives one at least a year to find a new job, or if in education, get benefits to finish education so he or she can get a new job.

By Rolf Van Bos | January 8, 2010 10:15 AM

Send the illegals home and get jobs back for the Dutch people. When there are NO JOBS then how is shortening the limit going to help? All this will do is make poor people poorer. But is that not the way the rich get richer? Where is Robin Hood!!!!!

By Paul Martin | January 8, 2010 9:57 PM

Becoming unemployed can cause depression, despair and ostracize your social life. It also leads to crime.

I'm sure that given the opportunity, people would rather be employed, if there were enough jobs for EVERYONE..

By stevie | January 9, 2010 1:24 AM

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