Presentation of the scheme designed by group XX Training Course on Designing and Implementing Unemployment Benefits Linking with Active Labour Market Policies 7-16 October 2013

OUTLINE OF PRESENTATION The Unemployment Insurance Scheme Objective Coverage / Benefit Main parameters Compliance with ILO standards consistence with international standards Institutional Set Up Involved organization Coordination with other schemes / organizations Funding Source Implementation Plan Monitoring and Evaluation

SCHEME: UNEMPLOYMENT INSURANCE OF CORESIA Objective of the Scheme To provide temporary and partial income replacement to insured Coresians and migrant workers during the time of losing their job while looking for a new employment. Identified policy gaps No Unemployment Insurance Scheme, just Severance Pay Severance Pay doesn’t include government sector, domestic workers and apprentice. The amount of severance pay does not conform with ILO convention 102 and 168.

2 - Consistency with international standards Parameter Principle in C.102 & C.168 Scheme parameter / Principle Coverage Not less than 50% of all employees or all residents based on a mean test Not less than 50% of all employees (includes migrants etc) Amount of benefit At least 45% At least 60% of former wage earning in the last three months Duration of benefit At least 13 weeks within 12 months 3 months to 12 months depending on length of contribution

2 - Consistence with international standards Parameter Principle in C.102 & C.168 Scheme parameter / Principle Qualifying conditions Not longer than the period considered necessary to preclude abuse (national context) minimum of 12 months accumulated contribution within 24 months Waiting Period maximum 7 days 7 days Contributors employee and employer at equal percentage Replacement at least 50 % of former wage at least 60% of former wage in the last three months

3 - Institutional set-up Main Organizations Iinvolved Ministry of Human Resources and Skills Development - Department of Social Security - Department of Labour - Department of Skills Advancement 4 – Funding Source and Contribution Rate Contributions from employer and employee at 0.8 percent shared equally at 0.4 % each. The contribution rate includes cost of administration but not ALMPs.

4 –Computation of Funding Source Economically Active Population (million) 37.266 Unemployment rate 4.7 % (million) 1.752 Used to working before (1,754*0.69) (million) 1.208 Active Job Seeker (1,752*0.574) (million) 1.005 Formal Sector (1,005*37.7) 379 Qualified persons (involuntary termination) (1752*0.82) 311 Qualified persons contributed 12 months or more 39.7% 123 Person not get job within 7 days (570*0.948) 117

4 – Computation of Funding Source Number of insured at SS (million) 14.560 Formal Insured Workers (37.7 * ) (million) 37.300 Number of Contributors 14062 Total insured earnings (COD) 141225670 Cost of benefits 1088792 Total cost, including 5% of administrative cost 1143232 Contribution Rate (total cost/total insured earning= 0.8 %) 0.00810

5 - Implementation plan Legal aspects IT System Offices & supplies HR Impl. & Comm.

6 - Monitoring and Evaluation Area Description of KPI Target Coverage % of total unemployed workers who are currently receiving unemployment benefits 50% of all unemployed during first year. 5 % increase in unemployed workers receiving UI in the next year Adequacy of benefits % of unemployed persons receiving their full entitlement of UI benefits without finding suitable employment 30 percent on first year and decreasing by 5% in following year Operational matters % of decisions made for vocational training within 15 days receiving request. 100% of decisions made for vocational training within 15 days receiving request. Financial matters Rate of return on investments for fiscal year 5% ROI Beneficiaries satisfaction % of unemployed persons applying to receive UI benefits satisfied with the department responsible for the timely and accurate payment of benefit 85% satisfaction rate