Working on a grant does not always prevent you from receiving earnings-related allowance. Your entitlement to the allowance depends particularly on whether the employment authority considers the work to be full-time or part-time.
What does working on a grant mean?
Working on a grant is common particularly in the fields of science, art and culture. A grant can be used to fund research, writing or other artistic work, for example. The work is usually carried out independently without an employment relationship.
When can you receive earnings-related allowance while working on a grant?
If you receive a grant for your work, notify the employment authority immediately. Your entitlement to earnings-related allowance depends on whether the employment authority considers your grant-funded work to be full-time or part-time. If, based on its assessment, the employment authority determines that your grant-funded work is full-time, you cannot receive earnings-related allowance. If your grant-funded work is considered part-time, you can receive earnings-related allowance. The employment authority will issue a statement on the matter to the unemployment fund. However, if your grant-funded work lasts no more than two weeks, you do not need to report it.
If you start working on a grant while unemployed, you can receive earnings-related allowance as usual for the first four months. Only after four months will the employment authority assess whether your grant-funded work is full-time or part-time. You can receive a new four-month period (“period without assessment”) only after you meet the employment condition again.
How does a grant affect the amount of earnings-related allowance?
How a grant affects the amount of your earnings-related allowance depends on whether the grant is taxable or tax-exempt. A taxable grant is income taken into account when calculating adjusted allowance and therefore reduces the amount of your earnings-related allowance. A tax-exempt grant does not affect the amount of your allowance.
Always notify the employment authority as soon as possible when your grant-funded work starts or ends and if there are any changes related to the work. This will also help speed up the processing of your application at the unemployment fund.
Grant-funded work does not count towards the employment condition. However, if you are in paid employment alongside your grant-funded work, the paid employment counts towards the employment condition as usual
The purpose of the grant matters
The name of the grant alone does not determine how it affects your earnings-related allowance. Not all grants are intended to fund work. A grant intended solely to cover travel, materials or other expenses is generally not considered earned income that reduces your allowance. However, if the grant involves working, the employment authority will assess whether the work is full-time or part-time. Full-time grant-funded work may prevent you from receiving earnings-related allowance for the period during which you work.
Remember these points if you work on a grant
- Notify the employment authority about your grant-funded work and any changes to it. However, you do not need to report work lasting no more than two weeks.
- If necessary, the employment authority will assess whether your grant-funded work is full-time or part-time.
- A taxable grant may reduce your earnings-related allowance. A tax-exempt grant does not affect the amount of the allowance.
- Grant-funded work does not count towards the employment condition, but paid employment alongside grant-funded work can count towards it.