Presentation of the scheme designed by group 2 Training Course on Designing and Implementing Unemployment Benefits Linking with Active Labour Market Policies 7-16 October 2013

Structure of the presentation Presentation of the scheme Objectives (especially regarding policy gaps in Coresia) Coverage / Benefit Main parameters Respect of ILO standards consistence with international standards Institutional set up Involved organization Coordination with other schemes / organizations Tentative budget Implementation plan Monitoring and evaluation

1 - Presentation of the scheme (1/2) Identified policy gaps No protection to involuntarily unemployed workers (in case of economic downturn) Inadequate appropriate training for labour market demands Objectives of the scheme To protect unemployed persons from income losses and get them back to the labour market as soon as possible To make risk pooling intra- inter-generations

1 - Presentation of the scheme (2/2) Benefit description (Involuntary unemployed) Termination benefits: money used up first before applying for UI application Benefit rates: not more than 50% for 6 month period Main parameters of the scheme UI, job placement, training, mobility Coverage: formal sector, domestic & migrant workers Training twice in 10 years with maximum duration of 3 months worth 10,000 COD Mobility assistance allowance not more than 10,000 COD every 10 years

2 - Consistence with international standards Parameter Principle in C.102 & C.168 Scheme parameter / Principle Coverage 50% of all employees (102) Min. 85% (168) 57.4% (for 6 months) Benefit Periodical payment of 45% Periodical payment of 50% 50% (for 6 months) Waiting period Max. 7 days 7 days Right to complains & appeals Required Statutory requirement

3 - Institutional set-up Main organizations involved MOHRSD DSS JCN DSA Coordination with other institutions / schemes MoF MoW MoE Employer & Workers’ Organization

4 - Tentative budget Funding source / Contribution rate 1 % of insured salary from Government, Employers & Employees Expenses / Cost of benefits 0.01 % of GDP 0.5 % of Govt. expenditure annually Sustainability Compliances must be enough if the scheme is solvent Investment must be effective

5 - Implementation plan Legal aspects IT System Offices & supplies HR Impl. & Comm.

6 - Monitoring and Evaluation Area Description of KPI Target Coverage % of total unemployed workers who are currently receiving UB 100% coverage Adequacy of benefits Average duration of benefit for fiscal year % of unemployed person receiving full UI benefits without finding suitable employment 6 months 100% Operational matters - % of employers consistently pay UI contribution on-time Financial matters Annual and cumulative balance between revenue and spending 20% (reserved) Beneficiaries satisfaction % of unemployed person (applying or receiving UI benefits) satisfy with the quality of services provided by the local processing offices

Group 2 Special Advisors to PM Mr. Prasong Vongkhamchanh Mr. John Carter Mr. Wan Zulkfli Wan Setapa Mr. Charles Crevier Mr. Adiya Gorchinsuren Mr. Mohd Zakri Baharudin Mr. Hay Hunleng Ms. Than Than Nu