Unemployment Benefits to See Gradual Reduction Starting January 2026
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A significant shift in unemployment benefit structure is set to take effect on January 1, 2026, impacting those receiving support. While individuals already entitled to benefits before the new year will be exempt, new claimants will face a gradually decreasing benefit amount over the duration of their unemployment period.
The change, announced on December 28, 2025, marks a departure from the previous system where recipients received a consistent 50% of their daily assessment basis throughout their claim. According to a statement from the social insurance company, the new system aims to incentivize a quicker return to employment.
Phased Benefit Reduction
Under the revised rules, the benefit will remain at 50% for the first three months of unemployment. However, a tiered reduction schedule will then be implemented:
- Months 4-6: Benefit drops to 40%
- Months 7-9: Benefit drops to 30%
- Months 10+: Benefit drops to 20%
This phased approach means a substantial decrease in financial support for long-term unemployment. For example, a recipient with the maximum assessment base could see their monthly benefit fall from approximately €1,553 in the initial three months to around €620 in subsequent months.
Grandfathering Clause for 2025 Claimants
A key provision of the new policy offers protection to those who established their right to unemployment benefits in 2025. These individuals will continue to receive benefits under the previous, more generous system – without the gradual reduction. “If you acquired the right in 2025, the state will pay you the benefit according to the old regime, i.e. without gradual reduction,” a senior official stated.
The changes come alongside other social welfare adjustments, including a planned increase in pensions by 26 euros in 2026 and a revised system for pension bonuses received from children.
The implementation of these changes will likely be closely monitored to assess their impact on unemployment rates and the financial well-being of those relying on unemployment assistance.
