Covid-19 – Unemployment insurance will receive extraordinary funding

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The Covid crisis has exploded unemployment insurance charges to unprecedented levels.

Unemployment insurance: According to current estimates, additional costs from Covid-19 of more than 12 billion francs are to be expected for 2020.

Keystone/archives

Unemployment insurance may well receive the additional funding of 14.2 billion francs needed because of the Covid. The Council of States also unanimously approved on Monday the adaptation of the law which makes it possible to avoid a grab on wages.

The project aims to create the legal basis to allow extraordinary additional financing of unemployment insurance by the Confederation in 2020. The Covid crisis has indeed exploded insurance costs to unprecedented levels.

In April, nearly 1.9 million workers benefited from reduced working hours. The annual average unemployment rate for this year is estimated at 3.8%.

According to current estimates, additional costs arising from Covid-19 of more than 12 billion francs are to be expected for 2020. Parliament has already released an additional credit of at most 14.2 billion during its summer session.

Contributions not increased

This extraordinary funding prevents the unemployment insurance fund from reaching debt of more than 8 billion francs at the end of the year. Because if we exceed this threshold, it triggers a mechanism for increasing contributions of up to 0.3% of the payroll, said Paul Rechsteiner (PS / SG) for the commission.

The adaptation of the law makes it possible to derogate from this mechanism due to the exceptional nature of the pandemic. The new legal basis should also make it possible to provide exceptional assistance to unemployment insurance in 2021, in the event that the pandemic continues to weigh on the labor market.

The National Council has yet to decide on the emergency clause, a formality.

ATS / NXP

Posted: 09/14/2020, 8:54 p.m.

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