Draft law amending the Unemployment Insurance Act and, in consequence thereof, amending other laws (519 SE) - first reading

Session: 15th Riigikogu, 4th session, plenary sitting

Date: 2024-11-21 02:48

Total Speeches: 14

Membership: 15

Agenda Duration: 14m

AI Summaries: 14/14 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The Riigikogu today discussed Bill 519 for the first reading of the Act amending the Unemployment Insurance Act and related acts, initiated by the Republic's Government. The bill aims to modernize the unemployment benefit system and motivate people to return to the labor market, reducing long-term unemployment and social exclusion visible in the labor market. Currently, the system is divided into two separate mechanisms – unemployment insurance and unemployment benefit – and the planned changes will create a unified unemployment insurance system by 2026, where, instead of unemployment benefit, a basic benefit will be paid according to unemployment insurance contributions and work experience. The basic amount is linked to the minimum wage, and the benefit amount is 50% of the minimum wage in force last year; the taxability or limits of the benefit depend on the unemployment situation, and the period may be extended. Another important part concerns subsistence support – it remains in place and can be applied for by those who lack sufficient income, but it does not replace unemployment benefit. The bill primarily increases fairness and clarity and reduces administrative burden, while still enabling continued health insurance and employment agency services.

Decisions Made 1
Collective Decision

A proposal was made to add draft 519 to the agenda of the plenary session, designate Madis Timpson as the rapporteur for the leading committee, and conclude the first reading. All decisions were made by consensus.

Most Active Speaker
Madis Timpson
Madis Timpson

Fraktsiooni mittekuuluvad Riigikogu liikmed

The most active speaker was the chair of the social affairs committee, Madis Timpson (pid: hi8rC5j4PTc), who holds a leading position in the parliament's workflow. He represented and led the discussion and presented the decisions upon which the bill's next steps were planned. He belongs to the broad political spectrum originating from right-wing or centrist tendencies and belongs, depending on the context, to the “other crowd” or “the belly button faction.”

Aseesimees Toomas Kivimägi
02:48:42
AI Summary

The Riigikogu reached the final item on today’s agenda—the first reading of the government-initiated draft bill No. 519, concerning amendments to the Unemployment Insurance Act and related laws—and now the Minister of Economic Affairs and Industry Erkki Keldo is taking the floor, whose long wait has led to an apology and a promise to plan the agenda better next time.

Majandus- ja tööstusminister Erkki Keldo
02:49:06
AI Summary

Economy and Industry Minister Erkki Keldo announced that from 2026 onward unemployment insurance and unemployment benefit will be merged, and a base-rate unemployment benefit will be created, which will be paid to those who have paid unemployment insurance contributions and have at least eight months of employment history in the last three years (including if the person leaves the job voluntarily or by agreement); the benefit amount is 50% of the base wage and the maximum payment period is 180 days, if necessary up to 240 days in cases of higher unemployment; if the required tenure is not met, one can apply for a subsistence allowance, and health insurance and Unemployment Fund services will continue; the aim is a clearer and fairer system that motivates a return to the labor market, reduces long-term unemployment and administrative burden, and avoids duplication.

Aseesimees Toomas Kivimägi
02:53:37
AI Summary

The vice-chairman thanks everyone, emphasizes that everything was very clear, and asks Madis Timpsoni, the chair of the Social Committee, to present the Executive Committee's decisions.

Madis Timpson
Madis Timpson
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
02:53:48
AI Summary

Madis Timpson described how, in the Social Committee, the draft bill was discussed and colleagues' questions were answered, and by consensus it was decided to put the draft on the plenary agenda, to appoint Timpson as the lead rapporteur, and to conclude the first reading, while at the same time discussing the harmonization of the system, the funding of the employment subsidy and the subsistence allowance, and the regulation of mandate contracts.

Aseesimees Toomas Kivimägi
02:57:30
AI Summary

The speaker says that there is one more question, and turns toward Anti Allas: "Please."

Anti Allas
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
02:57:31
AI Summary

Anti Allas asks what should be done in the case of young adults who live with their parents, who have no independent income and who lack the possibility to obtain a subsistence benefit, and whether they will remain 100% dependent on their parents or on whom they live with.

Madis Timpson
Madis Timpson
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
02:58:17
AI Summary

He thanks, reminds that the topic has been discussed earlier in the committee, considers the right answer, and promises that Erkki will eventually publish it and phrase what was said, although the answer remains owed to him.

Aseesimees Toomas Kivimägi
02:58:42
AI Summary

Toomas Kivimägi asks Helmen Kütt to speak.

Helmen Kütt
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioon
02:58:44
AI Summary

Helmen Kütt said that the law change being discussed in the committee will solve an important problem that the ombudsman has drawn attention to: for a student up to 24 years old to receive a subsistence allowance, a parent had to process it; now the allowance can also be obtained in cases where the parents cannot do so or when family relations have broken down, and this problem was also debated in the committee.

Madis Timpson
Madis Timpson
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
02:59:30
AI Summary

They thank the audience.

Aseesimees Toomas Kivimägi
02:59:34
AI Summary

Toomas Kivimägi thanked and announced that there were no more questions, opened negotiations, and again invited Aleksandr Tšaplõgin to take the floor.

Aleksandr Tšaplõgin
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
02:59:41
AI Summary

Aleksandr Tšaplõgin said that the government's proposal is bad and unfair, and the reform's aim is not to fix the unemployment insurance system but to save money at the expense of the poor, leaving students and thousands of people without support, reducing benefits for thousands of people, increasing the burden on local governments, and making the amount of benefits inconsistent with inflation and tax increases, and the faction proposes to reject the draft bill.

Aseesimees Toomas Kivimägi
03:00:45
AI Summary

Toomas Kivimägi announced that the leadership intends to terminate the first reading of Bill 519, but the Centre Party faction wants to postpone that first reading, and a vote was called.

Aseesimees Toomas Kivimägi
03:02:52
AI Summary

There are 2 in favour, 37 against, 0 abstentions; the proposal did not gain support, the first reading has been completed and the deadline for submitting amendments is 5 December this year at 17:15; thank you all.