Cabo Verde government approves creation of unemployment benefits

4 January 2016

The unemployment allowance, newly created in Cabo Verde (Cape Verde), requires employers to pay in an additional 1.5 percent of workers’ wages of workers who, in turn, contribute 0.5 percent, according to an announcement made by the Minister of Presidency of the Council of Ministers.

Minister Démis Lobo Almeida, announcing the approval of a draft law establishing the unemployment benefits in the archipelago, said difference to 3 percent of wages would be borne by allowances and supplementary benefits from the National Social Security Institute (INPS ).

The announcement in what is considered as an “active (measure to) repair the unemployment situation” in Cabo Verde, comes in response to a resolution of the meeting of the Council for Social Dialogue held on 25 February 2015.

Cited by pan-African news agency Panapress, Almeida also announced that unemployment benefits would never be less than the national minimum wage, which is 11,000 escudos (99.7 euros) and not more than 2.5 times the minimum wage.

Unemployment benefit will be awarded for a minimum of 60 days and may be extended, as appropriate, by “90, 120 or 150 days,” depending on the age of the worker and the amount of contributions paid.

The management of unemployment benefits falls to the National Social Security Institute (INPS), while the management of active employment measures is the responsibility of the Employment and Vocational Training Institute (IEFP).

The Cabo Verde government also approved a review of the Labour Code, another measures agreed at the Council for Social Dialogue, which aims to “create conditions for modernising labour relations in the country.” (macauhub/CV)