Pages

Sunday, February 20, 2011

Unemployment insurance in Germany

I met a German lady who is married to a Singaporeans and has lived in Singapore for 35 years. We talked about the unemployment insurance system in Germany.

She explained that it is a good system. It helps to take care of most people who are unemployed through no fault of their own. She quoted the example of the loss of manufacturing jobs in her home town due to global competition. The workers did not want to be unemployed, but they were the victims of global forces beyond their control.

She said that the abuses are small, maybe 1% or 2%.  Most of the unemployed people are keen to look for other suitable jobs. They want to work, rather than to live off the system. They have to look for work actively and will be lose their unemployment benefit if they refuse to take up suitable jobs.

The unemployment benefits are funded by the people who have work. If there is higher unemployment, all those who are working have to pay higher premiums for the insurance.  This is an equitable and compassionate system that gives dignity to honest workers who are caught by events beyond their control.

Our Singapore leaders exaggerate the abuse of the welfare system, and develop convoluted systems to deal with them. Look at our convoluted workfare income supplement. Most people cannot understand how it works. They have to refer to a booklet and to ask for explanations to know what they are entitled, and the amount of benefits are so small.

Tan Kin Lian

0 comments:

Post a Comment