NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.5.Passive Labour Market Policy
The unemployed receive unemployment benefit and subsequently emergency assistance as wage compensation for the duration of their unemployment. Elderly unemployed are provided with a pension advance to facilitate their transition into retirement; those in the mining sector receive so-called "special support".
As regards family benefits, the AMS grants special emergency assistance and training-unemployment benefit. The following family benefits have been paid by the local health insurance authorities since 1 July 1997: parental allowance, part-time allowance and the reintegration subsidy after parental leave.
To qualify for these benefits applicants must be unemployed, able and willing to work and have previously been in dependent contributory employment for a specified minimum duration; there are specific qualifying conditions for the individual benefits. Applicants who fulfil these requirements are legally entitled to benefits.
Beneficiaries enjoy health insurance, pension insurance and in some cases accident insurance; their dependants are also covered by health insurance. The duration of benefit is credited as a substitute qualifying period for old-age pensions. Beneficiaries are insured against accidents while participating in labour market policy schemes (employment foundations, training-unemployment benefit).
The rate of benefit largely depends on the recipient's previous income. In accordance with the principle of equivalence, beneficiaries who - on the basis of their previous earned income - are only entitled to a lower rate of benefit (e.g. part-time employees) are not protected against falling below the poverty level and requiring welfare support from the Länder and municipalities (social assistance). Moreover, the income of the recipient's partner (common-law partners and spouses have equal status under the terms of the AlVG) is taken into account in considering claims for family supplements to unemployment benefit and for emergency assistance. The parental allowance alone is subject to a fixed rate.
The benefits departments and the departments of active labour market policy in the regional offices of the AMS (respectively responsible e.g. for determining the duration of previous employment and monitoring willingness to work) determine and control eligibility for benefits.
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