Unemployed people may no longer need monthly counselling

Many people registered with Estonia’s Unemployment Insurance Fund will no longer have to attend counselling every month under proposed amendments approved for the first reading, ERR reported. Young unemployed people and those with reduced work capacity would instead receive counselling more frequently.

The Social Affairs Committee of the Riigikogu, Estonia’s parliament, decided to send amendments to the Labour Market Measures Act to the first reading. The amendments would remove the monthly counselling requirement for people registered with the fund.

Committee chair Signe Riisalo told ERR that the main aim was to reduce time spent on unnecessary counselling for people who are actively looking for work and find jobs quickly.

“The same resources will be directed towards young people at high risk of unemployment, who will receive intensive counselling four times a month,” Riisalo said. The Unemployment Insurance Fund also wants to extend counselling four times a month to people with reduced work capacity.

Riisalo said the changes would not create savings because resources would be redirected to groups requiring more support.

Some provisions would increase costs because benefit payments would not be stopped and work ability payments would not be suspended after the first violation, she said. Spending on unemployment insurance benefits and work ability allowances would decrease, however, because a third violation would end a person’s registration as unemployed and stop benefit or allowance payments.

The payments could resume if the person registers again, or after a 90-day waiting period following a second termination of their registration. The combined reduction in costs is expected to range from 346,000 to 452,000 euros in 2027 and 2028.

The bill is scheduled for its first reading in the Riigikogu on September 30. The provisions are planned to enter into force on January 1, 2027.