EXCLUSIVE: Romania Cuts Unemployment Aid 10% For 2011, More Beneficiaries Expected

Also, the Government expects the number of unemployment aid beneficiaries to rise significantly in 2011 compared to this year's projection.

In the final form of the country's state budget for 2011, obtained by MEDIAFAX, the Government estimates 449,000 people will get unemployment aid compared to 280,000 this year, while the number of graduates to get unemployment aid is seen rising to 45,000 from 10,000.

People close to the matter told MEDIAFAX Monday the Government is to change its calculation method for unemployment aid and no longer tie it to the minimum wage, which will be raised to RON670 next year from the current level of RON600. Instead, unemployment aid could be set at 75% to 90% of the country's reference social indicator, which is currently at RON500.

Unemployment aid is currently at 75% of the minimum wage, plus 3% to 10% of the average gross wage for the past 12 months, depending on the jobless person's social security contributions.

The Government estimates the average jobless rate will drop to 7.8% next year from the 8% expected for the end of 2010.

The draft state budget will be approved by the Government and will be forwarded to the Parliament.

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