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Government Programme reforms to unemployment security

Earnings-related allowance, Law reform, News

15.5.2024

Programme of Prime Minister Petteri Orpo’s Government was published on 16 June 2023 and it also included many changes to earnings-related security. The law will not change immediately, and the amendments will need to undergo legislative drafting before entering into force. Not all of the stated policies will necessarily be implemented as entered in the Government Programme.

 

Changes to the unemployment insurance law in 2024 in the order in which they come into force:

The changes that will come into effect on 1 January 2024:

  • The qualifying period will increase (parliament has approved the change)
  • The holiday compensation will be periodised (parliament has approved the change)
  • There will be no index increase for unemployment insurance in 2024-2027 (parliament has approved the change)
  • In addition, the additional increase that was made to the child increment in 2023 will be removed (parliament has approved the change)

 

Changes that will come into effect on 1 April 2024:

  • Child increments will be abolished (parliament has approved the change)
  • The protected part will be abolished (parliament has approved the change)

 

Changes that will come into effect on 1 August 2024:

  • The job alternation leave system will be abolished (parliament has approved the change)

 

Changes that will come into effect on 2 September 2024:

  • The employment condition will be linked to euros earned (parliament has approved the change)
  • The employment condition will be extended to 12 months (parliament has approved the change)
  • The amount of earnings-related daily allowance will be staggered (the change is under consideration by the parliament)
  • The employment condition does not accrue from pay subsidy work (the change is under consideration by the parliament)
  • Age-related exemption rules for unemployment security to be abolished (the change is under consideration by the parliament)

 

Government Programme entries on earnings-related security 

You can find more detailed information about the planned changes in the link for each point.

 

1. The amount of earnings-related daily allowance will be staggered

 

2. Child increments will be abolished

 

3. The employment condition will be extended to 12 months

 

4. The employment condition will be linked to euros earned

 

5. The qualifying period will increase to seven days

 

6. Periodisation of holiday compensation will be reintroduced

 

7. The protected part for part-time workers will be abolished

 

8. Age-related exemption rules for unemployment security to be abolished

 

9. Report on the development of income security

 

10. The job alternation leave system will be abolished

 

11. Possible combined insurance

 

12. Unemployment funds will be allowed to offer employment services to their customers

 

13. The employment condition accrue from pay subsidy work

 

14. Supplementary amount removed at the start of 2025

 

 

Not all of the stated policies will necessarily be implemented as entered in the Government Programme. The amendments will enter into force in 2024 at the earliest, and we will provide details about them as soon as we receive more information.