The Ministry of Labor has begun negotiations to reform the unemployment benefit system, engaging employers and unions in a plan the government says could widen access to support. The aim is to help about 450,000 people who currently fall through the cracks by extending and shaping benefits, while adjusting the initial payment scale from the current level toward a higher baseline before stabilizing again. After more than three hours of discussions, social representatives expressed concerns about gaps in coverage and how the changes would affect different groups.
Critics from the employers’ federation argued that the 41-page draft forwarded by the department did not include a thorough financial analysis or a clear estimate of the concrete effects on people losing benefits or relocating for work. Unions labeled the document partial and insufficient, warning that it could disproportionately affect young workers and women, among others.
The debate within the ruling coalition is slowing the reform of the unemployment benefits catalog for those who ran out of contributions or who do not qualify for subsidy assistance. In March, a regional press outlet reported that the Ministry of Labor planned to allow almost a million unemployed individuals to stay on benefits longer while seeking work. When employment opportunities arose, subsidies would be adjusted against earned wages. Nine months later, with a new legislative session underway, tensions within the Executive intensified, with differing views on how protective or stringent the approach should be for beneficiaries.
This Monday, social representatives had a first opportunity to review the ministerial proposal, but feedback was mixed. A spokesman for a major trade union federation stated that while the plan marks an improvement, it still leaves coverage gaps and does not ensure equal treatment across age or gender groups. Others noted that commitments made to Europe were not fully reflected in the draft. Critics from the federation and allied groups urged a quicker, more comprehensive approach to ensure cohesion with European expectations.
How many unemployed people could be covered?
If the conversation centers on how the reform might shield more people—from current job seekers to those who have exhausted benefits—the discussion shifts toward broader participation in the labor market. The business association argues that the text does not create clear channels to spur employment and that the proposed incentives fall short of motivating claimants to actively seek work.
The government has stressed the urgency of approving the subsidy reform as part of a long-standing commitment, now aligned with the Recovery and Resilience Plan agreed with the European Union. This plan includes delivering the next generation funds and meeting milestones that keep social protections aligned with economic recovery. Social representatives will meet again next week to revisit the proposed changes and discuss anticipated adjustments, including potential movements on the minimum wage for 2024.