Government guidelines on linking the earnings-related allowance to euros instead of hours
The Finnish Government decided on new employment measures on Friday 11th February 2022. The reforms concern linking the earnings-related allowance to euros instead of hours and the consideration of copyright royalties in the amount of the unemployment benefits. The Nordic labor market service model will also be introduced during Spring 2022.
Linking the earnings-related allowance’s employment condition to euros
Linking to euros means that the right to the daily allowance would no longer depend on the number of hours worked before the unemployment, but on the earned wages. The analysis period would also be increased to one month instead of the current one week.
At the moment, the pre-requirement of the earnings-related allowance is 18 hours a week for the duration of six months. As a result of linking the earnings-related allowance to euros, the person would have to earn EUR 844 per month (2021 level) for approximately six months.
As a rule, the employment condition would accumulate for each one-month working period. In certain situations, half-month working periods could also be accepted.
The amendment of linking to euros is intended to enter into force at the beginning of 2023. The provisions will be defined further during this year.
Copyright royalties would no longer impact unemployment benefits
The Government has also decided to give up the unemployment benefit adjustment based on copyright royalties received. This means that the copyright royalties would no longer affect the amount of the unemployment benefit.
Currently, the copyright royalties affect the unemployment benefits in the same way as wage income. Earning less than 300 euros per month does not affect the benefits. When earning more than 300 euros per month, half of the exceeding amount will reduce the benefits accordingly.
The obligation to seek work whilst doing self-motivated studies and receiving unemployment benefits
The Nordic labor market service model comes into effect during Spring 2022. The model introduces new obligations for job search. According to the current legislation, the obligation to seek work does not apply to persons who are doing self-motivated studies whilst on unemployment benefits. The Government has decided to repeal these exceptions so that the obligation to seek work also applies to people doing self-motivated studies.
However, the new obligations would still not apply to persons doing self-motivated studies who lack professional qualifications.
The amendment relating to the obligation to seek work is intended to enter into force at the beginning of 2023.
For more information:
The Finnish Government: Government decided on employment measures to strengthen central government finances by at least EUR 110 million