Congress proposes creating Unemployment Insurance with employer contribution

Congresswoman Sigrid Bazán (Cambio Democrático-Juntos por el Perú) has proposed creating the Unemployment Insurance, in order to protect and promote decent work in the country, as well as the development of people in decent conditions. Its implementation would be progressive, initially considering the coverage of dependent workers in the private sector of medium and large companies.

Bill 5510 states that the requirements to access Unemployment Insurance are the following: that the insured has 12 contributions, continuous or discontinuous, in the last 24 months and be unemployed for a period of time that will be determined in the regulation , but it should not be less than a week or more than a month.

The money would be awarded for a maximum period of 5 months as follows:

• 70% of insurable remuneration for the first month.
• 65% of insurable remuneration for the second month.
• 60% of insurable remuneration for the third month.
• 55% of insurable remuneration for the fourth month.
• 50% of insurable remuneration for the fifth month.

To finance the Unemployment insurance, a contribution will be made. The total contribution is equivalent to 1.16% of the monthly insurable remuneration: 0.58% will be deducted from the contribution corresponding to Compensation for Time of Service; and the other 0.58% will be a contribution paid by the employer.

This insurance must be administered by an institution with a tripartite management; In this sense, it has a board of directors with representation from the State, employers and workers, in the same proportion.

The initiative was presented this Monday, July 3 and it must go through the evaluation of the congressional commissions before reaching the plenary session for its debate and vote.