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← Overview Database of Innovative Social Policies in Europe

Regime of unemployment with company allowance (former bridge pension/pre-pension)

Country of implementation
General short description of the innovation
In an ?unemployment with company allowance? scheme, an employer dismisses an older employee under such conditions that the employee receives a specific unemployment status until he reaches the statutory retirement age. The dismissed worker receives a supplementary allowance (payable by the employer) on top of the unemployment benefit he receives from the National Employment Office (RVA) until the employee turns 65 years. The employer?s paid allowance amounts to 50% of the difference between the former net wage and the benefit. / / The reform restricted the conditions (entry age and working career requirement) for accessing the regime. The admission age increased to 60 years. There is a reduced admission age for companies who are recognized as a company in difficulties or as a company in the process of restructuring. The career length requirement increased to 40 years although longer careers can give access as early as 56 years. /
Target group
Older Workers
Policy Field
  • wage
Type of Policy
    Duration of the policy
    The ?bridging pension? scheme was introduced in 1974. The policy measure is often reformed and under discussion but still ongoing.
    Scope of innovation
    • Scope: structural
    • Budgets: Year Budget spent each year /2010 1591.5 *2011 1637.2 *2012 1626.4 *2013 1606.7 /Source:
    • Spatial coverage: national
    General description of (intended) objectives and strategies
    Encourage longer active careers and increase employment rates among elderly by reducing the number of people benefitting from early retirement schemes.
    Type of ideal-typical strategy for the innovation
    • dualisation
    • encompassing security
    • liberalisation
    Type of innovation
    • retrenchment or expansion of an existing/earlier policy
    New outputs
    • benefit eligibility
    • leave schemes
    Intended target group
    Older workers in the private sector who are made redundant and fulfill the eligibility criteria
    Working age population
    • employment situation (dismissed older workers )
    Actors involved in policy-making/implementation and/or evaluation
    • agency or national social insurance body (National Employment Agency (RVA))
    • employers (organised or individual)
    Intended output
    • leave schemes
    Intended and unintended outcomes
    outcome quantification (proportion of target group): / / number of beneficiaries / / Year Beneficiaries / 2010 120.946 / 2011 119.881 / 2012 115.728 / 2013 11.851 / Source: / /
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