The Mexican government is drafting an unemployment benefits scheme which would require 30bn pesos (US$2.39bn) annually in tax revenue and would attend to the 575,000 workers who lose their jobs each year, said labor minister Alfonso Navarrete Prida, as reported by local newspaper El Financiero.
The benefits would kick in one month after an employee loses their job, and would provide "just over" the minimum wage for a period of three to six months. The precise length of time will be defined by consensus under the 'Pact for Mexico,' he said.
Navarrete said the government was looking at two different unemployment benefit models being used in different parts of the world: one which would be 100% funded by the government, and a tripartite system which would involve contributions from employee and employer as well as the government.
The first model would be subject to judicial approval as it would have to be included in the government's yearly budget.
Under the tripartite system the employee would contribute towards an unemployment fund, which would motivate workers to seek employment as soon as possible so as to minimize personal costs. The drawback of such a system would be the cost to the employer, said Navarrete, according to El Financiero.
As well as receiving a monthly salary above the minimum wage, the out-of-work would receive support such as training from the country's national employment service SNE, and the chance to obtain new qualifications.
Of the 575,000 Mexicans who lose their job every year, 50% find a new one within the first month, 25% find employment between two and four months later, and another 25% take more than four months to find work, said the official.
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