Sweden Finland Austria

Unemployment
Where unemployment insurance is concerned, the variation of the effect on disposable
income is considerable among the 8 countries studied. This variation depends on both the
principles of unemployment insurance and the level of the benefits.
The criteria, according to which this important element of the social security system is
characterized, are:
Is insurance mandatory or voluntary?
Is there a waiting period?
Is the period during which benefits can be received dependent on the duration of
former occupation?
Is there a mechanism by which to renew the right to benefits?
Is the benefit ’flat rate’ or ’income related’?
For how long can the unemployed receive the benefit?
Is there an ’additional’ system?
The characterization of the unemployment benefit (U.B.) schemes is contained in table 2.3.

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Table 2.3.
Characteristics of unemployment insurance in 8 countries, 1997.
DK
S
FIN
A
Basic System
Type of insurance
Voluntary
Voluntary
Voluntary
Mandatory
1)
Eligible groups
Employees,
Employees,
Employees,
Employees
Self-employed
Self-employed
Self-employed
Waiting period
No
Yes 5 days
Yes 7 days
No
2)
3)
Duration of former
52 weeks of work
5 months of work
43 weeks
Minimum 52 weeks
period of work
within 3 years
within 1 year
of work 
of work
required for 
within 2 years
within 2 years
employees
Renewal of
26 weeks of work
As above
As above
As above
rights
within 3 years
Job-offer
Benefit formula
Income related, 
Income related,
Income related
Income related
low cap
low cap
Maximum
5 years, longer if
14-21 months
100 weeks within 4
20-52 weeks 
benefit period
person is 
dependent on age
consecutive years.
dependent on age
50-60 years, short-
renewal: repeated,
Longer when 57
and former work
er if over 60
based on joboffer
years
history
5)
Additional System
Existence
None
None
Yes
Yes
Eligible groups
’Newcomers’ and -
Unemployed
out-insured
not eligible 
for insurance
Maximum
No limit
No limit
benefit period
Benefit formula
Flat rate,
Income related
means-test
8)
1)
The Swedish system changed from voluntary to mandatory on July 1st 1994, and back again to volun-
tary from January 1995. From 1998 there is a mandatory basic insurance and a voluntary income
related scheme.
2)
In Denmark, the employer pays compensation for the first 2 days.
3)
From July 1993 Sweden has 5 waiting days.
4)
There are two initial qualifying conditions:
a.
During one of the two complete tax years prior to the calendar year in which the claim for unem-
ployment benefits is made, earningsrelated contributions must have been made for earnings equal
to at least twenty five times the lower earnings limit (measured in GBP/week).
b.
In each of the complete tax years prior to the calendar year in which the claim is made, the claim-
ant must have paid or been credited with contributions which total to those from income equal to
at least fifty times the lower earnings limit. Concerning renewal, the claimant must have worked for
at least 16 hours in each of at least 13 weeks in the 26 weeks before the benefit is reclaimed.
5)
From July 1994 the rules were changed in order to stop the repeated renewals without time limitations.
From 1995 the renewal mechanism was basically as before July 1994, i.e. without time limitation
through job-offers, limitations are being considered by the Swedish government.
6)
From January 1994 the max. benefit period has been limited to one year for people who have not
worked long enough to claim insurance benefits from the basic system.
7)
The working condition for step 2 is 4 years out of 5. In step 3 of the system the benefit is ’flat rate’.
8)
With a short work record there might be a flat rate ceiling.

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