Colombia on Monday introduced a subsidy for workers who have lost their jobs. The $56/month unemployment benefit can be claimed for six months after losing a job.
Until Monday, Colombians who lost their job were left with no subsidy at all, leaving many in imminent financial crises in the event of job loss.
The subsidy, however, is only a quarter of the minimum wage and insufficient to sustain a single person, let alone a family.
The subsidy is meant only for workers who are not already affiliated with the Protection Mechanism for the Unemployed, which guarantees workers’ ongoing pension savings and training.
Richer Colombians have the opportunity to close an unemployment insurance, an expense not affordable for more than 50% of the workforce that work for minimum wage.