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Oikopolut

Earnings-related daily allowance

Oikopolut

Earnings-related unemployment daily allowance is a benefit that unemploytment fund pays for the period of unemployment or lay-off

We also pay an earnings-related daily allowance for the duration of a service promoting employment.

You can apply for earnings-related unemployment daily allowance if you are a member of the unemployment fund.

You can receive an earnings-related daily allowance when you have fulfilled the labour market policy conditions, the membership conditions of an unemployment fund, and the employment conditions.

Briefly:

  • The fulfilment of the labour market policy requirements is examined by the Employment and Economic Development Office (TE Office), which issues a statement on the matter which is binding to the fund.
  • You must be a member of an unemployment fund for at least 26 weeks (membership condition)
  • During your membership, you must be in paid employment for at least 26 weeks (employment condition).

Other general conditions for receiving the daily allowance include:

  • Age 18–64 years (68 years for laid-off persons)
  • living in Finland
  • registered as an unemployed jobseeker with the TE Office
  • seeking full-time employment
  • The applicant for the daily allowance is fit to work and is available for the job market.

We will examine the fulfilment of the membership and employment conditions in connection with the processing of your application for an earnings-related daily allowance.

 

Labour market policy requirements

The TE Office examines your labour market policy requirements and issues a statement on this, which is binding to the unemployment fund. The fund cannot influence decisions made by the TE Office.

Proceed as follows:

  • Register with the TE Office as an unemployed jobseeker
  • You can register as a jobseeker by filling in the online registration form no later than on the first day of unemployment or lay-off. You can register even before the start of unemployment or lay-off.
  • After registration, the TE Office will contact you, agree on further measures and a possible personal meeting
  • If you are a client in the local government pilot on employment, the registration must be made throughthe TE Office's My Services

Membership condition

The membership condition is met when you have been a member of the fund for at least 26 weeks. The membership period of another fund is also added to the 26 weeks if you have become a member within one month of the end of the previous fund membership.

 

Employment condition

The employment condition is met when

  • you have been in paid employment for at least 26 calendar weeks during the 28 months immediately preceding unemployment.
  • As a family member of an entrepreneur, you can only be granted an earnings-related daily allowance if you have worked in the family business for 52 weeks meeting the employment condition, and you have been a member of an employee's fund during that period. However, you cannot combine work in a family business with another employer in order to fulfil the employment condition.

 

The employment does not have to be continuous, but you can accumulate weeks that accrue the employment condition even in shorter periods during the 28-month reference period. The employment condition is accrued only during the membership of the unemployment fund.

 

On a weekly basis, the employment condition is met when 

  • there are at least 18 paid working hours during a calender week (including, for example, paid vacation or sick leave)
  • the work has been carried out in employment and it is insured, i.e. tax has been withheld from it and unemployment and social insurance contributions have been paid
  • the salary is in accordance with the collective agreement. If there is no collective agreement in the industry, the salary for full-time employment must be at least 1,331 euros per month in 2023.
  • The salary for employment in the creative and performance sector has been at least 309,53 euros (in 2023).

If you have found employment in pay subsidy work, 75 per cent of the calendar weeks that meet the employment condition can be included in the employment condition. To qualify for 26 weeks' employment, you must work for 35 weeks. If you have found employment in pay subsidy work based on an employment obligation, all working weeks are included in the employment condition.

 

Period of examination of the employment condition

The 28-month review period of the employment condition may be extended for an acceptable reason for a maximum of seven years. Acceptable reasons for the extension include the time for which you have received

  • sickness allowance from Kela
  • parental allowance from Kela
  • child home care allowance from Kela
  • financial aid for students from Kela, or
  • you have been in military or non-military service.

 

Time limits to keep in mind

Important time limits when applying for earnings-related unemployment allowance. Infographics.


Other benefits or restrictions may affect your entitlement to an earnings-related daily allowance so that they either prevent you from receiving the daily allowance or reduce the amount. In some cases they have no effect on the entitlement to a daily allowance or the amount.

 

The right to an earnings-related daily allowance is affected by, for example, social benefits that prevent the payment of a daily allowance, labour market restrictions and restrictions related to the employment. These may prevent the payment of a daily allowance in full.

 

Some social benefits may reduce the earnings-related daily allowance. These benefits are deducted from the daily allowance monthly, in which case the month is calculated to include 21.5 days. Deductive social benefits do not affect the overrun of the maximum period of the daily allowance, but each day with reduced payment reduces the maximum period by one day.

 

Periods and benefits that prevent you from receiving a daily allowance

Below we have compiled the most common periods or benefits that prevent you from receiving a daily allowance. This list is not exhaustive.

  • You have a set waiting period
  • A non-remunerated deadline, i.e., a cooling-off period, has been set for you at the TE Office
  • You will receive a salary or equivalent compensation from your employer for the period of notice
  • You will receive other financial benefits related to the termination of employment from your employer (for example, a severance package or a "golden handshake")
  • You are being paid for your annual leave period for full-time work
  • You are receiving an old age pension
  • You are receiving maternity, special maternity, paternity and parental allowance or special care allowance
  • You are receiving a sickness or partial sickness allowance
  • You are receiving a rehabilitation allowance, a full disability pension or a rehabilitation assistance
  • If you are under 25 years of age and have not completed vocational training leading to a degree after comprehensive school or upper secondary school, and you have not applied for at least two study places in the joint application process.

 

Benefits that reduce the daily allowance

Below is a breakdown of some of the most common benefits that reduce the earnings-related daily allowance. This list is not exhaustive.

  • Part-time pension
  • Partial disability pension under the earnings-related Pensions Act
  • Child home care allowance paid to the family (care allowance and care increase)
  • Daily allowance and accident pension under the Accident Insurance Act
  • Supplementary pension arranged by the employer
  • Invalidity benefit received from another state.

 

Benefits that have no effect on the daily allowance

The amount of an earnings-related daily allowance is not affected, for example, by the following social benefits. This list is not exhaustive.

  • Child benefit
  • Family care allowance or family care fee paid by the municipality
  • Housing allowance
  • Survivors' pensions
  • Social assistance under the Social Welfare Act
  • Disability allowance
  • Care allowance under the National Pensions Act
  • Maternity allowance
  • Adoption grant
  • Partial early old-age pension.

 

Daily allowance calculator

You can calculate the estimate of the earning-related daily allowance you receive with the calculator.

Calculate an estimate of the amount of your daily allowance using the daily allowance calculator. The exact amount of the daily allowance is determined in the decision issued by the unemployment fund.

 

The earnings-related daily allowance is calculated from your wage income for at least 26 calendar weeks prior to unemployment. The weeks used to determine the daily allowance must meet employment condition.

 

As a family member of an entrepreneur, you can only be granted an earnings-related daily allowance if you have worked in the family business for 52 weeks meeting the employment condition, and you have been a member of an employee's fund during that period. However, you cannot combine work in a family business with another employer in order to fulfil the employment condition.

 

The daily wage used to determine the daily allowance is obtained by dividing the salary for 26 weeks of employment by the number of working days included in this period (5 days a week, i.e. 130 days). Days for which no salary has been paid due to an acceptable absence, such as unpaid sick leave, are not counted as working days.

 

If you have done seasonal work, your earnings-related daily allowance can be determined from the earnings of the 12 months prior to unemployment. This requires that the amount of work performed and, consequently, the earnings, have been significantly higher than usual.

 

From your monthly salary used to determine the daily allowance, the statutory percentage reduction corresponding to the earnings-related pension and unemployment insurance contribution and the sickness insurance daily allowance contribution, which is 3.76% in 2024, will be deducted first.

 

Which salary income is included?

 

When calculating the amount of earnings-related unemployment allowance, not all components of the salary are considered. Below are some examples of these salary components.

 

Included (the list is not exhaustive)

  • monthly, daily, and hourly rates
  • piece-work wages
  • annual leave pay
  • sick pay
  • Salary for the period of notice (not compensation)
  • salary supplements: overtime pay, evening work allowance, shift work allowance, contract base, midweek holiday allowance, etc.
  • performance-based remuneration, such as various kinds of performance-based remuneration and bonuses
  • taxable benefit in kind, e.g., phone and meal benefit
  • wages paid as wage security.

 

Not included (the list is not exhaustive)

  • holiday bonus and holiday compensation
  • tax-free benefit in kind
  • tax-free allowances (e.g., kilometre allowance, tool allowance)
  • financial benefit paid by the employer in connection with the termination of employment, that is, a so-called golden handshake (or whatever it is called)
  • compensation and damages corresponding to the salary for the period of notice
  • savings in the working time account or cash compensation withdrawn from the working time account
  • salary for the waiting period
  • capital income, e.g., option and dividend income.

 

How is the amount of the daily allowance adjusted?

The daily allowance consists of a basic part, an earnings-related part and a possible child increase. In 2023

  • the basic amount is equal to the basic daily allowance, 37.21 euros per day
  • The earnings component is 45 per cent of the difference between the daily wage and the basic rate. When the salary exceeds 3,534.95 euros per month, the earnings component is 20 per cent for the proportion exceeding this limit.

 

Child supplement

The child increments have been removed from unemployment benefits on April 1, 2024 (link to law changes)

A child supplement will be paid for a dependent child under the age of 18, which in 2024 will be

  • 5,84 euros for one child
  • a total of 8,57 euros for two children
  • and a total of 11,05 euros per day for three or more children.

 

You can receive a child increase for your own children or for the children of a spouse living in the same household (up to three children).

 

When is the daily allowance paid in increments?

If you participate in a service that promotes employment, the earnings-related daily allowance may be increased for a maximum of 200 days. If there are still days of daily allowance left to be paid after the employment-promoting service, they will be paid to you without an increased earnings component. A prerequisite for increased earnings is that you have agreed on the service in the employment plan with the TE Office or the municipality participating in the pilot on employment.

 

The amount of the increased earnings component is 55 per cent of the difference between the daily wage and the basic rate. If your monthly salary exceeds 3,534.95 per month, the increased earnings component is 25 per cent for the part exceeding this limit. Read more about studies and services promoting employment here.

 

You are eligible for an adjusted earnings-related allowance if you receive income and:

  • you are employed part-time, however, if you have reduced your working time yourself, you are not eligible
  • your daily working time has been reduced due to a temporary lay-off
  • you have received full-time work of up to two weeks
  • you are employed via business activities or part-time at your own job
  • you are employed full-time via business activities for up to two weeks
  • Started a business while unemployed (for up to four months).

 

The adjusted daily allowance will be paid as the same amount for each eligible working day of the application period. The daily allowance will be paid for both unemployed days and the days worked.

 

The amount of adjusted daily allowance is affected by the amount of your earnings-related allowance and the income from part-time work and other work subject to the adjustment.

 

The income you receive during unemployment will affect your earnings-related allowance when the income is actually paid to you. This is called a payment-based adjustment of the daily allowance.

 

Remember to keep your job search active at the TE Office at all times while you apply for an adjusted earnings-related allowance. This means that the job search must also be active while you work.

 

Amount of adjusted daily allowance

 

You can calculate an indicative estimate of the amount of the adjusted daily allowance using the daily allowance calculator.

 

The amount of adjusted daily allowance is affected by the amount of your earnings-related allowance and the income from part-time work and other occasional work.

 

The protected part of the adjusted earnings-related daily allowance was removed on April 1, 2024 (link to law changes)

  • Until March 31, 2024, the protected part was valid, i.e. if the earned income was less than the protected part of earnings, the received income did not affect the amount of paid daily allowance.
  • The protected part of earnings before withholding, i.e. gross income, was 300 euros for the application period of one month and 279 euros for the application period of four weeks
  • If your earned income for the application period was more than the protected part, the amount exceeding the protected part reduced the amount of earnings-related allowance. In such case, half of the income received during the application period exceeding the protected part was deducted from the full daily allowance.

 

Distribution of adjusted earnings-related allowance over several adjustment periods

If earned income is paid for an earning period longer than one month and this differs from the usual salary payment period, the earned income is divided to affect the month of payment and the same number of subsequent months as the what earning of the income is based on. If the adjustment period is four calendar weeks, the income is divided into four-week adjustment periods according to their income-earning.

Example:

On 3 July, you have been paid €1,500 salary for part-time work you have done in April, May and June. Because the income has been earned during three months, it is divided in earnings-related allowance adjustment to affect the month of payment and the subsequent two months – July, August and Septembe; €1,500 / 3 months = 500 euros per month.

 

Maximum adjusted daily allowance

 

You cannot receive an adjusted daily allowance that is more than the amount of your full earnings-related allowance.

 

The total amount of earned income from your work and the adjusted daily allowance together can be no more than the amount of income that is the basis for the daily allowance, when the income to be adjusted exceed the protected part of the earnings during the application period.

 

If the total amount of the earned income and the adjusted daily allowance would exceed the income that is the basis for the daily allowance, the daily allowance is paid as an amount where the total income is equal to the salary that is the basis of the daily income.

 

You can calculate an indicative estimate of the amount of the adjusted daily allowance using the daily allowance calculator.

 

Effect of working time on daily allowance

 

You can receive an adjusted daily allowance if your working hours do not exceed 80% of the working time in full-time employment:

  • In part-time work, the paid working hours during full-time work of up to two weeks and reduced hours due to temporary lay-offs during the application period is compared to full-time hours. Depending on the payment rhythm, the paid hours are compared to full-time working hours of four calender weeks or a calender month.
  • Hours worked in business activities are not relevant and do not need to be reported.

 

The working time is taken into account for the period, when the income is paid to you.

Example: You start working at a part-time job in July. The salary is paid to you on 15 Aug 2023. The maximum working time for a full-time employee in the sector is 40 hours per week. 80 per cent of the maximum working time is 137.60 hours in a calender month. You have worked 140 hours in July, so the working time exceeds 80% of the maximum working time on the sector. You application for the period of 1–31 Aug 2023 is rejected due to the hours worked in July and paid in August. If you have not received any income from the salary in July, you will be paid the a full daily allowance for the July application.

Distribution of working time considered in adjustment over several adjustment periods

If the earned income to be adjusted has been earned during an earning period longer than one month and it is adjusted to affect several months, the working time is also divided to affect the month of payment and the same number of subsequent months as the what earning of the income is based on. If the adjustment period is four calendar weeks, the working time considered in the adjustment is divided into four-week adjustment periods according to their income-earning.

Example:
On 3 July, you have been paid salary for a total of 100h of part-time work you have done in April, May and June. Because the income has been earned during three months, the working time, i.e., the number of paid working hours, is divided in earnings-related allowance adjustment to affect the month of payment and the subsequent two months – July, August and September. 100h= 3x33.3 hours per month.

If the working time taken into account in adjustment exceeds 80% of the full working hours of the sector, adjusted daily allowance cannot be paid.

 

If your weekly working time is reduced due to a temporary lay-off, you will receive a full daily allowance for the unemployed days. If your weekly working times is reduced due to a temporary lay-off and you receive income from part-time work, full-time work of up to two weeks, or business activities, you will be paid an adjusted daily allowance.

 

Accrual of the maximum period of an earnings-related unemployment allowance of 300–500 days

 

The amount of the full daily allowance and the adjusted daily allowance affects how the maximum period of time is accrued, when the adjusted daily allowance is paid.

 

The adjusted daily allowance accrues more slowly the maximum time of earning-related daily allowance of 300–500 days than the days of full daily allowance.

 

When you receive an adjusted daily allowance, the calculator accumulates days according to the amount paid. When the adjusted daily allowance has been paid corresponding to the full amount of the full daily allowance, one day is accumulated on the calculator.

Example: If your full daily allowance is 40 euros per day and your adjusted daily allowance is 33.70 euros per day, the maximum time calculator will accrue days from a four-calendar-week application (20 days x 33.70 euros): 40.00 = 16.85, that is, 17 days. When calculating the maximum payment period, the amount paid as an adjusted daily allowance is converted into full earnings-related allowance days.

You can receive daily allowance from the unemployment fund for five days a week for 300–500 days of unemployment. The maximum period depends on your work history and age:

 

Work history  Maximum time
Up to 3 years 300 days (approx. 14 months)
More than 3 years 400 days (approx. 18 months)
At least 5 years of work history in the last 20 years and your employment condition is met after the age of 58 500 days (approx. 23 months)

 

Re-fulfilment of the employment condition

If you comply again with the employment condition of 26 calendar weeks, the maximum period starts again from the beginning. The earnings-related daily allowance is recalculated when the employment condition is met, if more than one year has elapsed since the start of the previous maximum period. The start of the maximum period refers to the first day of payment of the daily allowance.

 

The earnings-related daily allowance is not recalculated when the employment condition is met if the new maximum period starts within one year of the start of the previous maximum period, and the daily allowance was calculated at that time.

 

If your employment condition is met again during independent studies or labour market training, the daily allowance will not be recalculated in the middle of the service.

 

Once the maximum period is reached

Once the maximum payment period has been reached, you can apply for labour market support from Kela. You will receive a written decision on the termination of your entitlement to an earnings-related daily allowance with your last payment notification. Submit the decision to Kela and the TE Office.

 

An earnings-related daily allowance can also be paid after the maximum period if you are entitled to additional days of an earnings-related daily allowance, i.e. you remain in the so-called "retirement streak".

 

Additional days of daily allowance ("retirement streak")

Additional days of a daily allowance ("retirement streak") means that you can receive an earnings-related daily allowance even if the maximum period for the daily allowance has expired. Additional days can be paid until the end of the calendar month in which you turn 65.

 

You may be entitled to an earnings-related daily allowance for additional days if you have been employed for at least five years during the past 20 years and

 

were born in the year, and before the maximum period has been reached
1957-1960 61 years
1961-62 62 years
1963 63 years
1964 64 years

 

You do not need to apply for additional days separately, but we will automatically examine your entitlement, based on your application for an earnings-related daily allowance.

 

  • However, remember to keep your job-seeking valid at the TE Office for the period when you apply for an earnings-related daily allowance
  • At the end of your entitlement to a daily allowance, you have the opportunity to apply for an old-age pension.

 

If you have been paid additional days and you then intend to apply for an old-age pension

  • ask us for a certificate for the additional days paid
  • send the certificate we sent you to your pension company.

You can request a certificate at the earliest when you have been paid a daily allowance for at least one day during the month preceding the start of your pension.

 

For example, requesting a certificate for additional days
The A-fund has paid you additional days of an earnings-related daily allowance. You plan to retire on 1 April You can request a certificate at the earliest when the daily allowance has been paid to you on or after 1 March.

 

If they wish, people born between 1950 and 1957 can retire on an old-age pension after the age of 62, and no early retirement deduction will be made from the pension.

Your daily allowance will be determined, i.e., recalculated, when

  • you have been in employment that fulfils the employment condition again for 26 calendar weeks during the 28-month reference period, and
  • more than one year has elapsed since the start of the maximum period of daily allowance

 

The amount of your earnings-related allowance will not be recalculated when

  • you have been in employment that meets the employment condition again for 26 calendar weeks during the 28-month reference period, but
  • less than one year has elapsed since the start of the maximum period of daily allowance.

 

If your employment condition is met during independent studies or labour market training, the daily allowance will not be recalculated in the middle of the service.

However, the recalculation of the amount of the daily allowance should be seen separately from the start of the calculation of the maximum daily allowance period, i.e., 300–500 daily allowance days:

  • The calculation of the earnings-related allowance days for the maximum period of the daily allowance always starts all over again when the employment condition is met.
  • The calculation starts all over again, even if the daily allowance is not recalculated and the waiting period is not set.

 

Example, the daily allowance is recalculated
Your employment condition will be met again on 24 April 2022. The daily allowance was previously calculated, and the waiting period will apply from 3 May to 9 May 2021, but the daily allowance has not been paid for any single day. The first day of unemployment is 25 April 2022. However, the daily allowance was not paid in 2021, so the maximum period of the daily allowance has not started. The waiting period will apply from 24 April 2022, and the daily allowance will be recalculated.

 

Example, the daily allowance is not recalculated
Your employment condition will be met again on 20 March 2022. The last time your daily allowance was calculated, and the waiting period was set was in March 2021. The first daily allowance was paid on 29 March 2021. After the employment condition has been met, the first payable day of the new maximum period without the waiting period would be 21 March 2022, i.e., within one year of the start of the previous maximum period on 29 March 2021. The daily allowance will not be recalculated, and the waiting period will not be set. The payment of the daily allowance will continue from 21 March 2022 with the daily allowance calculated in March 2021. The maximum period starts from the beginning.

 

Protective rules when calculating the new daily allowance

The amount of your daily allowance is at least 80% of your previous daily allowance (without the child increase) when

  • your employment condition will be met again while the maximum period is underway i.e., there are still days of daily allowance (300–500 days) to be paid.

 

There is no protection of 80% of the daily allowance if 

  • your new employment condition will only be met after the maximum payment period has been reached, i.e., there are no more days of daily allowance left to pay (300–500 days).

 

If you are between 57–59 years of age and your employment condition has been met in an employment arranged based on an employment obligation:

  • the amount of your daily allowance will not change unless
  • your salary calculated based on new income data is not higher than the previously calculated salary on which the daily allowance is based. Thus, the amount of your daily allowance may increase but not decrease.

 

If you have reached the age of 58 and your employment condition is met:

  • the amount of your daily allowance will not change unless
  • your salary, calculated based on new income data, is not higher than the previously calculated salary on which the daily allowance is based. Thus, the amount of your daily allowance may increase but not decrease.

 

The amount of the daily allowance for persons aged 60 or over shall not be recalculated if

  • their employment condition includes a period of time when, after the age of 60, they have been in a service promoting employment on the basis of an employment obligation.

The waiting period is seven days during which you have been unemployed as a jobseeker at the TE Office.

From 1.1.2024 the waiting period is seven days

From 1.1.2024 the waiting period is seven days during which you have been unemployed as a jobseeker at the TE Office. As a rule, no daily allowance is paid for the waiting period.

 

Weekdays from Monday to Friday are accepted as a waiting period, and a calendar week can include a maximum of seven days of a waiting period, unemployment and working days. The waiting period must be accrued over a period of eight calendar weeks.

 

The waiting period cannot include time for which there is no entitlement to a daily allowance (for example, during the accrual of a financial benefit).

 

If you have working hours from part-time or occasional employment during the waiting period, this period is the number of hours equivalent to seven days.

 

Example

You work part-time for four hours a day and seven days per week from Monday to Friday. The maximum working time for a full-time employee in your work is 40 hours per week, or 8 hours per day.

You apply for an adjusted daily allowance for the duration of your part-time employment, and you have no other employment. As you work part-time for four hours a day, your waiting period also accrues at the rate of four hours per day. In this case, your waiting period will be reached in 14 working days.

Exceptions to calculation of the waiting period

 

For the duration of services promoting employment, no waiting period is applicable in practise. The waiting period runs at the same time as a daily allowance is paid for the duration of the service.

 

Midweek holidays can also be included in the waiting period if you have registered with the TE Office before the midweek holiday, and your employer is not obliged to pay compensation for midweek holidays in the event of a lay-off.

 

Re-application of the waiting period

A waiting period is set when 

  • you meet the employment condition, and
  • the maximum payment period for an earnings-related daily allowance (300–500 days) starts from the beginning.

 

However, the waiting period will not be reset if 

  • you meet the employment condition,
  • the new maximum period starts within one year of the start of the maximum period of the previous daily allowance period (when, in practice, the daily allowance was paid for the first time in the previous daily allowance period), and
  • the waiting period was set at that time.

The TE Office issues a statement on the suspension period that is binding to the unemployment fund, and there is no entitlement to a daily allowance during the suspension period.

If you have resigned from your job without a valid reason or caused the employment to end, the TE Office will set a non-remunerated deadline, i.e., a suspension period.

 

The TE Office issues a statement on the suspension period that is binding to the unemployment fund, and there is no entitlement to a daily allowance during the suspension period.

 

An exception to this rule is employment-promoting services agreed with the TE Office, for which the daily allowance is paid concurrently with the suspension period.

 

A suspension period is different from a seven-day waiting period.

  • Apply for sickness allowance from Kela if your illness lasts more than 9 days (including Saturdays).
  • If your illness lasted no more than 1+9 days (the first day of illness and 9 days of illness including Saturdays), you do not need to apply for sickness allowance from Kela.
  • If your incapacity for work continues even though the maximum period of 300 days for Kela's sickness allowance has been reached, you can apply for an earnings-related daily allowance from the fund.

You can receive an earnings-related daily allowance if certain conditions are met during the waiting period of the sickness allowance. Apply for sickness allowance from Kela if your illness lasts more than 9 days (including Saturdays).

 

You cannot receive an earnings-related daily allowance if you receive sickness or partial sickness allowance from Kela or if your employer pays you sick pay.

 

Read more about sickness allowance on Kela's website.

 

If your illness lasts less than 9 days

If your illness lasted no more than 1+9 days (the first day of illness and 9 days of illness including Saturdays), you do not need to apply for sickness allowance from Kela.

 

If you are applying for an earnings-related daily allowance from the A-fund, proceed as follows:

  • always report your sick leave in the earnings-related daily allowance application
  • mark the daily statement of the application as "sick" from the first day of illness
  • indicate the duration of your illness, if it is already known
  • you can send your application to the fund according to your normal application rhythm for either 4 weeks or one month

 

The maximum period of cash sickness benefit of 300 days has been paid

If your incapacity for work continues even though the maximum period of 300 days for Kela's sickness allowance has been reached, you can apply for an earnings-related daily allowance from the fund.

 

If you are applying for an earnings-related daily allowance from the A-fund, proceed as follows:

  • Register with the TE Office immediately when the maximum period of sickness allowance is reached
  • Please contact our customer service. We will guide you in more detail, depending on your situation regarding any additional clarifications to be sent to the fund. We need certain explanations to process your application for an earnings-related daily allowance.

 

You are entitled to a daily allowance when

  • the strike is not intended to affect your working conditions but
  • you are prevented from working due to a strike in another industry

You are not entitled to an earnings-related daily allowance paid by the unemployment fund for strike days if 

  • you have been prevented from working, directly or indirectly, because of industrial action (such as a strike or lockout), and
  • a strike or lockout is aimed at influencing the terms of your employment.

 

Instead, in these situations, you can apply for strike pay from your own trade union or from another trade union that has called the strike.

 

Have you been laid off during a strike?

If you are laid off, you are entitled to an earnings-related daily allowance for the days your are laid off, provided that

  • the lay-off notice has been given to you before the strike warning is issued, and
  • the strike date falls on the previously announced lay-off date.

 

If you are applying for an earnings-related daily allowance for days, you are laid off and taking the above into account, follow these steps:

  • Re-activate your job-seeking at the TE Office, so that you can apply for a daily allowance
  • notify the TE Office that you prevented from working during industrial action by another group of employees or employers (i.e. strike or lockout).

 

If your working week is shortened because you are laid off, you cannot receive an earnings-related daily allowance for strike days that fall on your working days.

 

Do you work part-time during a strike?

You cannot receive an earnings-related daily allowance during a strike if you work part-time and have received an adjusted daily allowance from us.

 

Was your work interrupted due to industrial action in another industry? 

If your work is interrupted due to industrial action in another industry, you may be entitled to earnings-related unemployment allowance.

 

When your work is prevented due to a strike in another industry that is not aimed at affecting your terms of employment, your employer has an obligation to pay seven days of wages. If the strike that prevents your work lasts longer than seven days, you are entitled to earnings-related unemployment allowance without the seven-day waiting period.

 

Also in this case, remember to register as a jobseeker at the TE Office so that you can apply for the daily allowance. Tell the TE Office that you have been prevented from working due to an industrial action (strike or lockout) by another group of employees or the employer.

 

You may be entitled to an earnings-related daily allowance if your work is interrupted due to industrial action in another industry.

 

You are entitled to a daily allowance when

  • the strike is not intended to affect your working conditions but
  • you are prevented from working due to a strike in another industry.

NB! In this case, your employer has a seven-day obligation to pay wages. After seven days and if the strike that prevents you from working continues, you are entitled to an earnings-related daily allowance without a seven-day waiting period.

If you are applying for a daily allowance in this case, follow these steps:

  1. Activate your job-seeking at the TE Office so that you can apply for a daily allowance
  2. Notify the TE Office of the prevention of your work during the industrial action (i.e. strike) taken by another group of employees or the employer
  3. Apply for daily allowance from the day after the end of salary payment
  4. In your application, announce until when the employer will pay you a salary

During the lay-off period, the payment of an earnings-related daily allowance depends on the provisions of the collective agreement.

  • If the day is a paid local midweek holiday in your collective agreement, select midweek holiday as the day of the application, otherwise you can mark laid-off.

The employer's obligation to pay wages for midweek holidays also depends on the collective agreement. You can check the provisions of the collective agreement on midweek holiday compensation, for example, with your trade union.

Paid absences and midweek holidays when completing an earnings-related unemployment allowance application

In the event of a weather barrier, you can apply for a daily allowance from the fund under certain conditions.

If work is prevented due to freezing temperatures, those working in the building and forestry industry must have agreed on a frost limit before starting work on the site. A weather barrier is a situation in accordance with a collective agreement in the building or the forestry industry where

  • Work is prevented solely and exclusively due to freezing temperatures
  • A certain frost limit has been set in advance for the construction site, below which the work will not be carried out
  • The weather barrier under the Unemployment Security Act only applies to the building and forestry industry. In other industries an employer may, if necessary, lay off a person for production and economic reasons.
  • According to the collective agreement, the employer is not obliged to pay any wages or other remuneration.
  • Earnings-related daily allowance can only be paid for a completely unpaid frost day. If the salary has been paid for example for the waiting period, then no daily allowance can be paid for that day.
  • An entire day of weather obstacles can be used to accrue a waiting period or to pay unemployment benefit when the job-seeking is activated at the TE Office. Inform the TE office that it is a weather barrier or frosty day.
  • Unpaid frosty days must be specified either in a statement from the TE office or in a separate certificate from the employer.

 

In this case, you can apply for the daily allowance from the fund, if the employer has not paid wages or other remuneration for the days in question. However, always fill in the application for entire calendar weeks from Monday to Sunday.

In the forest machinery sector or in the sheet metal and industrial insulation sector an employee may be laid off due to a weather barrier. You can also apply for a daily allowance for these days if you are laid off.

If you are applying for daily allowance for the first time in the event of a weather barrier or your employment condition has been met again, the seven-day waiting period will be set normally.

In case of doubt, you should contact either your own trade union or the customer service of the A-fund.

 

Note! The Unemployment Fund specifically needs a revised tax card for the benefit if you want to change the tax rate.

Your tax rate will be increased to at least 25% when the earnings-related allowance is paid unless you deliver a revised tax card for the benefit to the unemployment fund. If the withholding tax for salary has been, for example, 15.50 percent, without a revised tax card it will automatically be increased to 25 percent. Please note that the tax percentage of the earnings-related allowance cannot be changed if you have ordered a revised tax card for your salary from the tax administration.

 

As a general rule, the Unemployment Fund receives tax withholding information directly from the Tax Administration. It is not necessary to send paper versions of tax cards that are meant for salary or revised tax cards meant for benefits to the unemployment fund.

 

You can order and submit a revised tax card for benefits by using the Tax Administration’s MyTax service. In addition, see the tax administration’s instructions “How to request a tax card for wage or benefit income in MyTax”.

 

Your tax rate is also determined for other benefits, i.e., job alternation compensation, mobility allowance and restructuring protection allowance, in the same way as the earnings-related allowance.

If you have worked part-time while getting your pension, your earnings-related allowance is determined from the income from part-time work, in which case the amount of the full  earnings-related daily allowance is lower than the daily allowance determined from the income from full-time work.

As a rule, a partial early old-age pension does not affect earnings-related unemployment allowance. In other words, the pension is not a benefit that prevents you from receiving earnings-related unemployment allowance and is not deducted from the allowance. However, a partial early old-age pension may have an impact on the amount of full earnings-related unemployment allowance calculated by the fund and on the payment status of the allowance.

 

You can apply for partial early old-age pension from your employee pension institution. You can retire on a partial early old-age pension at the earliest when you turn 61 if you were born in 1963 or earlier. If you were born in 1964, you can retire on a partial old-age pension at the age of 62.

  • Withdrawing the pension early reduces your pension permanently for the rest of your life.
  • The amount of pension to be paid is permanently reduced by 0.4 per cent for each month you retire before your actual old-age retirement age.
  • When you retire on a partial old-age pension, you can choose whether you want to receive 25% or 50% of your accrued pension
  • Partial early old-age pension is not tied to a reduction in working hours. This means that you can work shortened hours or, if you wish, also normal full hours while receiving the pension

 

Effects on how the amount of earnings-related unemployment allowance is determined

The amount of earnings-related unemployment allowance for the period while you receive partial early old-age pension is determined immediately before the start of unemployment or temporary lay-off.

 

If you have worked full-time while receiving your pension, the period which you receive the pension has no effect on the amount of the daily allowance.

 

If you have worked part-time while receiving your pension, your daily allowance is determined based on income from part-time work. In this case, the amount of the full daily allowance is less than the allowance determined based on income from full-time work.

 

Effects on the payment of earnings-related security

If you have worked full-time, receive a partial early old-age pension and are unemployed or laid off, the payment of your daily allowance is not affected. In other words, you will receive a full daily allowance even if the partial early old-age pension continues while you are unemployed. The partial early old-age pension is not deducted from your daily allowance.

 

If you have worked part-time, receive a partial early old-age pension, and become unemployed or are laid off, you will be paid adjusted daily allowance, and the wages for part-time work paid during the four-week or one-month conciliation period will affect the amount of earnings-related allowance. The partial early old-age pension is not deducted from your daily allowance.

Example 1: Full-time work and partial early old-age pension

You have worked full-time while receiving a partial early old-age pension. Your full-time salary is 2,500 euros per month, of which the amount of full daily allowance is 70.49 euros. Your become unemployed and after the waiting period, receive the full daily allowance of 70.49 euros per day.

 

Example 2: Part-time work and partial early old-age pension

You have worked part-time while receiving a partial early old-age pension. Your part-time salary is 1,875 euros per month, of which the amount of full daily allowance is 57.98 euros. You become unemployed. You are still paid the part-time salary of 1,875 euros during your first adjustment period. After the waiting period, you will receive an adjusted daily allowance of 0.58 euros per day. If the next application period no longer has a payday for the part-time work, you will receive the full daily allowance of 57.98 euros per day for the following period.

You can get more information from your pension company

 

Please find out the amount of your pension from your own employee pension institution before applying for a partial old-age pension.

You can also find more information about the partial old-age pension on the website of the Finnish Centre for Pensions.

Holiday compensation affects the right to earnings-related unemployment allowance in such a way that annual holidays not taken by the end of the employment relationship will postpone the start of earnings-related unemployment allowance payments by as many days as the holiday compensation paid corresponds to the average salary for the number of working days. This is called the periodisation of holiday compensation.

The periodisation applies to full-time employment that has lasted more than two weeks and has ended. Holiday compensation paid for part-time employment are not periodised but are adjusted when the daily allowance is paid.

The periodisation of holiday compensation does not affect lay-offs, because then the employment relationship does not end completely.

For example, if you are paid a holiday compensation equivalent to a month’s wages when your employment ends, it is possible to start accruing the waiting period and pay the unemployment benefit only when this paid period ends, in this case, after about a month.

Example of periodization:

  • The person's full-time employment, which lasted more than two weeks, has ended on January 31, 2024. At the end of his employment, he has been paid 1,500 euros in holiday compensation for annual leave that he has not taken.
  • His average monthly salary has been 3,000 euros and his daily salary 3,000 euros: 21.5 days = 139.53 euros/day.
  • The holiday compensation is divided by the average daily wage of 1,500 euros: 139.53 euros/day = 10 days.
  • 10 payable days, i.e., two weeks from the end of the employment relationship, are used for the periodisation of holiday compensation.
  • Earnings-related daily allowance cannot be paid from 1 February to 14 February 2024. After the period, the waiting period is taken into account, which is seven days, i.e. starting on February 15, 2024 and lasting until February 25, 2024.
  • The payment of the earnings-related daily allowance can therefore start on 26 February 2024.

 

Amount of earnings-related allowance

You can read more about the amount of earnings-related daily allowance here.

The following sources of income are taken into account when calculating the amount of an adjusted earnings-related daily allowance:

  • basic wages or salary and associated allowances and reimbursements, such as evening work bonuses, overtime pay, standby and on-call allowances as well as any taxable fringe or employee benefits
  • holiday pay and holiday bonuses
  • pay for annual leave earned through part-time work
  • pay for the notice period, where the unemployment benefits claim is not rejected on the basis of the claimant’s being entitled to pay for the notice period
  • performance-based payments, such as commissions, bonuses and profit sharing
  • endowment insurance premiums paid for by the employer
  • taxable portion of voluntary pension insurance premiums paid for by the employer
  • taxable portion of scholarships and grants paid for by the employer
  • royalties based on intellectual property rights, with the exception of copyrights
  • compensation payments to shop stewards and occupational safety and health representatives as well as individuals involved in collective bargaining
  • payments in lieu of wages or salary
  • wages or salary payments guaranteed by the pay security system, where these payments would, had they been made by the employer, constitute earnings that are taken into account in the adjustment process
  • gratuities
  • earnings from self-employment, with the exception of
  • net income from forestry within the meaning of the Agricultural Income Tax Act
  • earnings component of dividend income
  • earnings component of disguised dividends
  • cash compensation withdrawn from a working time account
  • dividends based on labour input within the meaning of the Income Tax Act
  • other comparable income