400,000 unemployed may see benefits cut as government seeks savings

According to Zycie, the Labor Ministry is planning to implement savings cuts, which would decrease unemployment benefits and pre-retirement benefits, which are given to those who have been made redundant and are less than 5 years from retirement. If the suggested cuts go through, next year the unemployed will receive lower benefits. Benefits are currently increased by the inflation rate twice a year, in March and September. The Ministry now proposes just one increase in June, and only by half of the present inflation rate. According to the drafts that Zycie quotes, the cuts will save the government zl. 300 million. When asked to comment on the proposal, Finance Minister Marek Belka said that the draft legislation was still under discussion. Agnieszka Chlon, from the Institute for Market Economics, believes the cuts are a good move, saying it should particularly motivate those on pre-retirement benefits to search for work again. Michal Boni, former Labor Minister disagrees, saying that the current labor market situation does not allow for such drastic cuts. Currently there are approximately 400,000 unemployed in Poland. (Zycie, 3-4.11, p. 1) M.T.K.