I saw a prorgramme on Belgian TV about the dole and how social security is a "job trap" in Belgium. The main problem is that the unemployed are entitled to the dole without limitation in time and can only lose it if they refuse too often to take jobs that the National Organisation for Employment (ONEM) proposes to them. An unemployed person in Belgium receives in average 723 euro per month (in 2005), but sometimes over 1000 euro for married people with chidlren.
The truth is that even people who are not entitled to the dole can get money from the government, through another social organisation called "CPAS" in French and "OCMW" in Dutch (initials for "Public Centre of Social Aid"). To show how illogical the Belgian social security system was, the reporter explained that one could earn more at the CPAS/OCMW than on the dole or working !
What is more, unemployed people can sometimes be entitled to "social lodging", which means that they only pay a fraction of the normal rent of a house/apartment. Finding a job also means losing such advantage (as well as other discounts).
Because the Belgian social security is so generous, it does not encourage people to work. The TV reporter explained that most unemployed people had no interest in taking a job paying less than 1500 euro per month (i.e. 1000 GBP, 1925 UD$ or 225,000 yen). As a result, nobody wants such jobs anymore, except foreigners from poorer countries that are not entitled to social security (i.e. if they do not become Belgian after 5 years of residence).
In Belgium it is possible to earn more on the dole than working part-time, and sometimes even full-time. The irony is that one is not allowed to do even part-time or temporary work while being on the dole (that does not prevent working in black). It is probably the same in France and Germany, where the social security system is similar. No wonder the unemployment rate does not drop. It is not a sign of a lagging economy, but of a too generous system, aimed at reduced poverty but in fact encouraging immigration from developing countries.
Proposed solution
I think that they should allow temporary work for up to 3 months a year, because otherwise many people will work in black anyway. Regularising this will increase the tax revenue on the 3 months worked, which can only benefit the government and lighten the burden on other tax payers. In other words, people on the dole pay for part of their dole. In fact, work allowed while on the dole should be more taxed than the same job for someone not on the dole, so as that part of the money earned by the "dolers" goes back exclusively to the social security fund. The same could be envisaged for part-time work (let's say up to 15 or 20 hours per week). It's a win-win situation as dolers earn more (and are active) and the government earn more. It is better than suppressing the dole for people with temporary (max 3 months per year) or part-time jobs because they wouldn't be able to make a sufficient living with that, and probably less than on the dole alone. Finally, people would rather do legal temporary/part-time work with higher taxes and no risk of losing the dole (acting as a 'minimum guaranteed revenue') than work in black while on the dole.
The truth is that even people who are not entitled to the dole can get money from the government, through another social organisation called "CPAS" in French and "OCMW" in Dutch (initials for "Public Centre of Social Aid"). To show how illogical the Belgian social security system was, the reporter explained that one could earn more at the CPAS/OCMW than on the dole or working !
What is more, unemployed people can sometimes be entitled to "social lodging", which means that they only pay a fraction of the normal rent of a house/apartment. Finding a job also means losing such advantage (as well as other discounts).
Because the Belgian social security is so generous, it does not encourage people to work. The TV reporter explained that most unemployed people had no interest in taking a job paying less than 1500 euro per month (i.e. 1000 GBP, 1925 UD$ or 225,000 yen). As a result, nobody wants such jobs anymore, except foreigners from poorer countries that are not entitled to social security (i.e. if they do not become Belgian after 5 years of residence).
In Belgium it is possible to earn more on the dole than working part-time, and sometimes even full-time. The irony is that one is not allowed to do even part-time or temporary work while being on the dole (that does not prevent working in black). It is probably the same in France and Germany, where the social security system is similar. No wonder the unemployment rate does not drop. It is not a sign of a lagging economy, but of a too generous system, aimed at reduced poverty but in fact encouraging immigration from developing countries.
Proposed solution
I think that they should allow temporary work for up to 3 months a year, because otherwise many people will work in black anyway. Regularising this will increase the tax revenue on the 3 months worked, which can only benefit the government and lighten the burden on other tax payers. In other words, people on the dole pay for part of their dole. In fact, work allowed while on the dole should be more taxed than the same job for someone not on the dole, so as that part of the money earned by the "dolers" goes back exclusively to the social security fund. The same could be envisaged for part-time work (let's say up to 15 or 20 hours per week). It's a win-win situation as dolers earn more (and are active) and the government earn more. It is better than suppressing the dole for people with temporary (max 3 months per year) or part-time jobs because they wouldn't be able to make a sufficient living with that, and probably less than on the dole alone. Finally, people would rather do legal temporary/part-time work with higher taxes and no risk of losing the dole (acting as a 'minimum guaranteed revenue') than work in black while on the dole.
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