Source: European Parliament
The Eurostat definition of unemployed is based on guidelines and global standards provided by the International Labour Organisation (ILO).
In line with Article 148 of the Treaty on the Functioning of the European Union (TFEU), the guidelines for the employment policies of the Member States (the ‘Employment Guidelines’) are to guide policy implementation in the Member States and in the EU, including in matters related to unemployment benefits[1].
Member States retain their autonomy to determine the details of their social security systems (Article 153(4) TFEU), including which benefits are provided, their eligibility conditions and their calculation methods. Consequently, Greece retains its competence to determine the amounts of unemployment benefits to be provided.
The reform of the unemployment benefit system, tested on a pilot basis under the EU Recovery and Resilience Facility, is part of the Greek government’s effort to streamline unemployment benefits, to improve public spending efficiency and facilitate transitions to employment.
The ongoing pilot considers prior work experience and applies an indexation of the benefit to the latest daily net wage level, which is decreasing over time to motivate return to work thereby having a positive impact on the coverage of the unemployment insurance system.
The pilot is based on a study funded by the Commission and complements the employment incentive introduced by Law 4921/2022[2], whereby unemployed persons who find a job during the duration of the unemployment benefit are entitled to 50% of the remaining benefit as an incentive in addition to their salary.