As a benefit, earnings-related allowance is a typically associated with unemployment or lay-off. However, it is important to remember that in some scenarios you can also qualify for earnings-related allowance if you are incapacitated for work.
First apply for sickness allowance, then for earnings-related allowance (if eligible)
Whether you are employed or unemployed, Kela’s sickness allowance is your primary benefit when you fall ill. The maximum period for sickness allowance is 300 days. This means that the month during which your 300th sickness allowance day would occur is your first month of non-eligibility for sickness allowance.
Illness and earnings-related allowance
A short illness or a small accident does not render you ineligible for earnings-related allowance, provided that you meet its other requirements. If you are ill for ten days or less, enter ‘Illness’ in your day-specific information when filling out your earnings-related allowance application. If you have been working part time and receive sick pay, report this in your application. If you are ill for more than ten days, enter your sick days like you would for a shorter sickness absence when filling out your application. Additionally, you can choose to apply for sickness allowance from Kela.
Your first day of incapacity for work plus the next nine weekdays are your qualifying period for sickness allowance. While Saturdays qualify as weekdays, midweek holidays do not. If you receive earnings-related daily allowance right up to the beginning of your qualifying period, you can continue to receive earnings-related allowance for these days as well, provided that you meet the other requirements.
If your illness or accident is severe enough to require hospital or other institutional care, always report this in your application. According to legislation, institutional care renders you unavailable for the job market, also making you ineligible for earnings-related allowance during your institutional stay.
What qualifies me for earnings-related allowance when I am incapacitated for work?
If you are in an employment relationship, you can be eligible for earnings-related allowance after reaching the maximum period of Kela’s sickness allowance if the following conditions are met: you are in an employment relationship, your employer cannot provide you with work suitable to your current ability to work, and you have an application pending for full disability pension. To ensure you are not left without income, you can receive daily allowance during the processing period of your disability pension application. If your disability pension application is rejected because you are deemed fit for work, you remain eligible for earnings-related allowance until the decision enters into force. In this case, your disability pension application is no longer considered pending.
If you are unemployed, you can be eligible for earnings-related allowance after reaching the maximum period of Kela’s sickness allowance if you have not been granted full disability pension or some other benefit that renders you ineligible. An applicant must be a registered jobseeker with an employment authority and able to accept full-time employment.
In these scenarios, earnings-related allowance provides for a safety net, complementing and extending an applicant’s financial security before a primary benefit, such as sickness allowance, rehabilitation subsidy or full disability pension, enters into force.
Partial disability, job search and daily allowance
If you are partially disabled or on partial disability pension and not working, you are required to register as an unemployed jobseeker with an employment authority. Also register as a jobseeker if you continue to be employed full time but your employer cannot provide you with part-time work.
If you are on partial disability pension, it will be deducted from your daily allowance.
Take care of your unemployment security
If you become incapacitated for work, earnings-related allowance can make all the difference. Make sure that earnings-related allowance remains available to you by ensuring that your membership and jobseeker status remain in effect and that you meet all eligibility conditions. Do not hesitate to contact your unemployment fund for advice
Incapacity for work and earnings-related allowance – key points to remember
- First Kela, then fund – sickness allowance is your primary benefit (for a maximum period of 300 days).
- Short illness (≤10 days) does not render you ineligible for earnings-related allowance – enter ‘Illness’ in your application.
- Over 10 days – fill out similarly to a short illness; you can also choose to apply for Kela’s sickness allowance.
- Exception: no eligibility for earnings-related allowance during hospital or institutional care.
- Following sickness allowance, continued eligibility for earnings-related allowance possible if disability pension application still pending.