According to the grand coalition elderly unemployed people shall receive unemployment benefits for a longer period of time before they have to take recourse to the so-called Hartz IV welfare benefits.
The association of German employers (BDA) criticises that “the prolongation to 24 months of the period during which unemployment benefits are paid to people aged over 50 puts a mulit-billion burden on contributors”. The respective amendment is to be voted upon by the German lower house of parliament on Friday. According to this amendment, the time during which workless employees over 50 are entitled to unemployment benefits is to be gradually increased.
According to the Federal employment agency (BA) there will be an additional burden amounting to 755 million Euros on the agency’s budget due to the new regulations. Since the new rules will apply with retrospective effect from January 1st this year, there are about 400.000 cases in the whole of Germany which will have to be checked and to which the new rules might apply.