What is guaranteed daily wage?

When accepting a new job on the basis of unemployment benefits, the situation may arise in which you are left with lower unemployment rights after a temporary position ends. The guaranteed daily wage can prevent you from being punished for accepting a job at a lower wage. Under certain conditions, you are entitled to unemployment benefits after you have become involuntarily unemployed. Employees who have a long employment history receive unemployment benefits for longer than employees with a short employment history. In practice, employees who have been dismissed from a long-term employment contract have difficulty finding a job with a comparable income.

Drop in income

During the first two months of the unemployment benefit period, you as an employee receive 75 percent of the last earned wage (up to the maximum daily wage). For the remaining term of the unemployment benefit, you are entitled to 70 percent of the last earned wage. A new job must then be found. It will have to be a job that is in line with the education and experience received. This is necessary just to get a comparable income again. After you become unemployed as an employee, you must take into account that you may not be able to find a new job with a comparable income. This will especially apply to employees who have been dismissed from a company where a good collective labor agreement is in force or has been in force. Over the years the salary has risen sharply, but you cannot expect such a salary from the new employer.

Accepting a job with a lower income

If you accept a job at a lower income, you will not in all cases be compensated from the unemployment benefit. In the first year that you receive the benefit, only the number of hours you will work is taken into account. Will you receive unemployment benefits based on a 36-hour working week and you will work 20 hours again? Then the benefit continues for 16 hours. It does not matter how much you earn in the relevant 20 hours. If you receive a high hourly wage, you will still receive the benefit for the 16 hours. Suppose you accept a temporary position with a lower income, then it will cost you money compared to the benefit rights.

Back in unemployment benefits after a temporary position

After you have worked again for six months, your unemployment benefits are based on your new income. For example, you are entitled to unemployment benefits based on a full-time salary of 3,000. You accept a temporary position with a salary of 2,500 for a period of one year. As soon as the temporary position expires, you will receive an unemployment benefit of 1,750 instead of 2,100 that you were entitled to before you accepted the temporary position. This was seen as undesirable. The guaranteed daily wage prevents disadvantages for employees who have accepted a lower-paid position.

Guaranteed daily wage looks at old rights

Under certain conditions you may be entitled to the guaranteed daily wage. This means that if you become unemployed again, the unemployment benefit will be based on the old income with a previous employer. This guarantee was established so as not to discourage unemployed people from accepting a temporary job at a lower income. The following conditions are imposed:

  • You returned to work in a job with a lower salary within two years of being laid off
  • You will become unemployed again within three years of being fired the first time