Friday, July 20, 2007
AMMAN, Jul. 20, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
The imminent amendments to the Social Security Law include a provision introducing unemployment insurance to cover jobless subscribers for at least three months, the Social Security Corporation (SSC) said on Thursday.
'Unemployment insurance will be part of the amended law,' SSC media consultant Omar Koullab told The Jordan Times.
The changes will be ready by November, but the corporation will wait until the new Parliament starts its first ordinary session to submit the proposal, the SSC said, reiterating that it wants a permanent law rather than a temporary one. The parliamentary elections are expected to take place in November, but so far, no date has been set.
The expected expansion of SSC coverage would not add any new financial burden on the corporation, Koullab said. 'There are certain proposals to cover the cost of this new insurance area, through shares between the employees and the employers.'
A study in this regard has been completed, recommending government support for unemployment insurance. 'Government funds are one option,' Koullab commented.
The SSC launched a nationwide dialogue to discuss the options to amend the current law. Parties involved agreed that jobless subscribers over 45 would receive a monthly unemployment allowance for 6 months, while those below 45 would receive such allowances for half that period.
This project is linked with the National Employment Centre (NEC) and the Vocational Training Programme, Koullab said.
The objective, he added, is to train jobless subscribers and then offer them a job, he added. 'Unemployment coverage will be lifted when the subscriber rejects a job offer (by the NEC, following the training) for the second time,' Koullab said.
Meanwhile, the corporation has been focusing on amending provisions governing early retirement with possible amendments setting a ceiling for pension allowances, SSC officials said during the 11th Regional Conference on Pension and Social Security Systems which was held in June.
During the conference, the corporation announced it was studying means to expand its coverage to include unemployment and maternity leave, 'to create a balance between economic and social developments'.
The SSC was established in 1980 to provide social security benefits for retirees, the disabled and families of the deceased under Social Security Law No. 13 for 1978. This law was amended in 2001 by SSC Law No. 19.
Almost half of the revenues of the SSC come from its investment unit, established in 2002.
The assets of the SSC dropped by JD600 million at the end of last year due to the decline in share prices at the Amman Stock Exchange (ASE). They shrank to JD3.9 billion in 2006 compared to JD4.5 billion at the end of 2005.
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