OAED: Income criteria for unemployment «benefits» – What is changing in the allowance

Income and property criteria will now determine whether an unemployed person remains unemployed or is removed from the list of registered unemployed persons of the OAED, in order to reduce the phenomenon of «unemployed people from the northern suburbs» with high incomes who benefit from the privileges of those on the list (exemption from ENVAT, low-priced electricity, free transport and others).

At the same time the unemployed you must prove that you are seeking employment. If he or she refuses up to three times to join a training programme, the job will be removed from the list. Provision will also be made for incentives for the unemployed to find a job while receiving unemployment benefit from the OAED and compulsory attendance at training programmes.

5,000 unemployed with an income of more than €30,000 per year

The tightening of the criteria is provided in the bill of the Ministry of Labour presented today and will be put in the next few days for consultation and concerns the reorganization of the OAED and the fundamental change in the vocational training system.

As recent audits have shown, the list of OAED is about 5,000 people with an income of more than 30,000 euros per year ή people employed in the «black» economy, damaging the state.

These well-off unemployed people have been on the list for more than five years and have even received the special support for the long-term unemployed granted in 2019 and 2020.

Everything changes in training

The draft law will also provide for radical changes in vocational training in order to make targeted use of the a budget of EUR 1 billion from the Recovery Fund.

One of the important changes is that the training provider and the beneficiary must demonstrate the quality and effectiveness of the training in order to receive the grant.

In particular, the payment of providers and beneficiaries is linked to certification, with the aim of ensure that the resources will «pay off». That is, the 30% of the amount to which providers and trainees are entitled will be paid only after certification. For the first time, the methodology of paying providers on the basis of outcome (Payment by Results), in order to ensure the efficiency and optimal use of the Recovery Fund.

The key innovations

The main innovations of the new programmes are:

1. Universities take a central role in training: For the first time, unemployed citizens will have access to training programmes offered by universities, and in particular the Training and Lifelong Learning Centres (KEDIBIM) of universities, under a special call addressed only to public university institutions. Universities will manage in this first phase 50% of the total budget.
2. A wide range of options is offered in modern high-demand training subjects: Beneficiaries can choose from a variety of training programmes in high-demand sectors, with a focus on digital and green skills.
3. Given at emphasis on certification by major international technology companies providing - through third parties - recognised certifications for digital skills. The aim is to enhance the quality and attractiveness of the programmes.
4. Raising the bar for training providers, as stricter criteria for participation are introduced of Lifelong Learning Centres (LLCs) in the programme, including the acquisition of additional international ISO certificates.
5. Audit of the educational material by an independent body: The quality of the educational material is ensured based on modern quality standards, which will be controlled by a specialized independent body.
6. Choice of certification body by the trainees themselves and not by the training providers, so that the beneficiaries can choose the certificate they want.