Payday to determine period when earnings-related allowance is adjusted

Earnings-related allowance can be paid as adjusted allowance, when you work e.g. part-time during your unemployment. In future, earned income will reduce the amount of your daily allowance according to your payday. The processing of adjusted allowance application is no longer delayed due to late payday. 

Income earned during unemployment will affect the daily allowance, when the salary is in reality paid to the applicant of daily allowance. This is called as payment-based adjusted earnings-related allowance. The legislative amendment took effect on 1 of April 2019. Currently earned income during unemployment will affect the the daily allowance based on the date the work has been done, that is, on earnings-basis.

When we are processing your application, waiting for the payslip does not delay the processing any longer, if your salary is paid significantly later. Current processing status, however, may have an effect in the processing time, because the applications are processed according to the receipt date.

As before, applicant must carefully fill in the the working days and hours to the application in order to avoid corrections to the application afterwards. This will also avoid errors, which may lead to changes on allowance.

Earnings-related allowance application at the turn of March and April

If you apply for adjusted daily allowance so that your application concerns both March and April, it is possible that your application will be processed both on earnings- and payment-basis.

You work part-time and apply for the allowance from 18.3. – 14.4.2019. Salary is paid to you on 15.4.2019. The salary you have earned during 18. – 31.3.2019 will be reduced from your allowance application from 18. – 31.3.2019. The salary you have earned from 1. – 14.4.2019 will not have an effect on your allowance, because you have received salary on 15.4.2019. Daily allowance from 1. – 14.4.2019 will be paid in full amount.

Hence, please note that there may not be a mistake in the processing your application, if the allowance is reduced in March but not in April. However, if you notice a mistake in your application and it is not in relation to payment-based processing of your application, please contact our customer service.

Salary will effect daily allowance according to payday starting from April

If you start part-time or short-term work, you will receive allowance in full amount for the first application period, if the salary is paid during the next application period. Send the salary information to the unemployment fund when you get it.

You start part-time work on 8.7.2019. Salary for July is paid on 15.8.2019. For the July application 1. – 31.7.2019 you will receive full allowance. However, the allowance will be adjusted during the application period of 1. – 31.8.2019, because you have received the salary on 15.8.2019.

If your working hours during the application period exceeds 80 per cent of the maximum working hours of a full-time employee in similar position, the daily allowance will be rejected. Working hours affect the payment of your allowance also according to the payday of salary starting from April 2019.

You work part-time in July. The salary is paid to you on 15.8.2019. Working hours of a full-time employee is 40 hours per week. 80 per cent of the working hours of a full-time employee is 137,60 hours within a calendar month. You have worked 140 hours in July, which means that you have exceeded the working hours limit. The application for 1. – 31.8.2019 will be rejected due to the hours worked in July.

In other respects the legislative change does not affect the calculation of the daily allowance. For instance the amount of standard entitlement of 300 or 279 euros remains the same.

Adjusted daily allowance can be paid according to worked period in some cases

It is, however, still possible that adjusted allowance is paid according to the period, when the work was done. For instance, the adjusted allowance can be paid on earnings-basis when your working weeks have been shortened due to temporary lay-off and you simultaneously receive some other income from part-time work or entrepreneurship.

Employment condition and activity requirement

The legislative amendment does not cause any changes to fulfilling the employment condition or the activity requirement. Working weeks that can be taken into account when fulfilling the 26 weeks employment condition and activity will be accrued according to the period, when the work was done.

If you fulfil the employment condition, your application for daily allowance cannot be processed until you have submitted the salary information for 26 weeks to the unemployment fund. Please note that in this case the processing of your application may be delayed, if the salary is paid late. This is because every week that fulfils the employment condition needs to be separately checked by our benefit assessor in order to confirm the fulfilment of employment condition.

Membership fee

The membership fee must still be paid according to the period, when the work was done.

You receive short-term work for the period of 10. – 19.7.2019. Salary is paid to you in August. The membership fee must be paid according to the period, when you have actually worked. Use the reference number meant for July, which has due date on 15.8.2019.

For more information on payment-based adjusted daily allowance, please contact our customer service, tel. +358 20 690 455.