Unemployment benefit to be paid quickly without decision

The government brought an amendment to the Unemployment Security Act with the provision to pay the unemployment benefit without a decision, as an advance payment.

The President approved the act on temporary derogations from the Act due to the coronavirus epidemic, said a government press release on Friday.

The act will enter into force on 11 May 2020 and it will remain in force until 31 October 2020.

The amendment to the law was brought to make the processing of applications simplified in the situation where the number of applications is growing fast.

The coronavirus epidemic has caused an exceptionally high number of applications for unemployment benefits to unemployment funds and the Social Insurance Institution Kela.

Once introduced, the amendments will facilitate implementation and speed up the processing of applications.

Based on a temporary amendment, unemployment benefit can be paid without a decision, as an advance payment, for a period of six months instead of the current period of two months.

In line with the current practice, unemployment benefit must be applied separately for each unemployment period.

The amendment on the advance payment of the benefit also enables to safeguard the payment of unemployment benefits during backlogs.

Advance payments may reduce pressure to apply for income support during the time when the application for unemployment security is waiting to be processed.