Dutch unemployment cuts could slash benefits for 50,000 workers, unions warn
Dutch labor unions CNV and FNV are warning that changes to unemployment benefits proposed by the new coalition could leave tens of thousands of workers worse off. The Jetten I Cabinet plans to cut the duration of benefits from two years to one and lower the maximum payout.
Under the plan, the first two months of benefits would rise from 75 to 80 percent of previous wages, with payments dropping to 70 percent afterward. Vice-chairman of CNV, Patrick Fey, said the initial increase provides little help for those unemployed beyond the first two months.
The accumulation of benefit rights would also be halved, from one full month per year worked to half a month, extending the time needed to qualify for a full year of benefits.
CNV calculations indicate that about 24 percent of benefit recipients, roughly 50,000 of 200,000 annual claimants, would see a significant financial loss. “This is no small group,” Fey said. “People give up a lot of money while premiums remain the same.”
Currently, unemployment benefits are capped at a monthly income of 6,617 euros gross. The proposed 20 percent reduction would lower that ceiling to 5,293 euros gross, with 70 percent paid after the initial two months.
CNV estimates that individuals entitled to the maximum benefit could lose up to 66,307 euros over two years. Fey noted that those affected are often older workers nearing the end of their salaries who may receive shift allowances, not top earners.
The unions also warn that many workers could face serious financial problems as layoffs rise. “Older employees especially struggle in the job market and worry about ending up on social assistance or having to sell their homes. These are real concerns,” Fey said.
FNV highlighted that younger workers would also be affected. With the slower accumulation of benefits, it could take 24 years for a worker to build entitlement to a full year of unemployment pay at the new rate.
Fey rejected the notion that targeting higher-income workers would make the system fairer. “People have paid WW premiums themselves, and if you earn more, you also live according to that. Losing your benefits when you are out of work has nothing to do with luxury,” he said.
