Senate approves changes in unemployment insurance

The Senate approved Tuesday (May 26) the unchanged draft submitted by the Chamber of Deputies of a government proposal amending eligibility rules for labor benefits, including unemployment insurance and wage bonuses. The bill will now be submitted for presidential sanction.

With 39 votes in favor and 32 against, the government relied on the support of its allies to ensure the text would be approved unchanged, thus avoiding further revision steps that could lead to a time-bar condition.

The most controversial point in the proposal was a provision that changed a minimum wage bonus paid yearly to low-income workers. Under the new rules, workers will only be eligible to receive the pro rata benefit if they have worked at least 90 days under a formal employment contract in the previous year. This means that eligible workers will receive one-twelfth of the minimum monthly wage for each month they worked in the previous year, similar to the rules for calculating Christmas bonuses (one extra monthly wage per year, in proportion to the number of months worked).

As for the unemployment insurance, the new proposal requires applicants to provide proof of having worked for at least 12 months in order to be eligible for the benefit the first time they apply. For the second application, the labor history period will be nine months, and for the third, six months.

The proposal has also changed eligibility rules for the seguro-defeso, a benefit paid to fishermen during the fishing prohibition season. Under the proposed rules, fishermen will have to prove that they have worked for at least one year in order to receive the benefit. The seguro-defeso can be received cumulatively with other existing welfare benefits that the fishermen are entitled to.

The voting session was watched by trade unionists, who protested from the Senate galleries. At several points, Senate President Renan Calheiros had to stop the session until the uproar calmed down. The complaints were mainly targeted at ruling Workers' Party (PT) senators, who were accused of betraying workers.

Translated by Mayra Borges