The payment of unemployment benefit becomes more efficient

New temporary changes have been made to unemployment benefit due to the backlog of cases caused by the coronavirus situation. The purpose of the changes is to facilitate and speed up the processing of applications in unemployment funds. The temporary act is in force until 31 October 2020.

Streamlining applications for adjusted unemployment benefit

In applications for adjusted unemployment benefit, the special adjustment period and calculated earned income are not applied if the application period has started during the validity of the law.

Daily allowance is paid as adjusted daily allowance if the applicant has worked during the application period and has earned income. Adjusted daily allowance is paid when the earned income exceeds EUR 300 per month. Those who are laid off for a shortened working week are not paid adjusted daily allowance. Instead, they will be paid full benefit for the days they are laid off.

Various phases are needed to process applications where adjustment is needed especially when the application period is something other than four calendar weeks or one month. The purpose of the temporary amendment is to impact the number of phases by temporarily removing the special adjustment period, i.e. a period other than four calendar weeks or one month and the related calculated earned income.

Changes in an entrepreneur’s income based on their own notification

An entrepreneur’s income is taken into account on the basis of their notification if the income has decreased due to the coronavirus pandemic. Entrepreneurial income is taken into account in the unemployment benefit mainly on the basis of information in the tax decision. If income has decreased from the previous verified taxation due to the coronavirus pandemic, the change in income can be taken into account when paying unemployment benefit on the basis of the entrepreneur’s own notification.

Advance payment for six months at the most

With the amendment, unemployment benefit can be paid as a so-called advance payment without a decision for a maximum period of six months instead of two months.