The Parliament has approved a legislative amendment that removes the supplementary amount of earnings-related allowance. The increase could have been paid if the unemployed person participated in a service promoting employment. The change affects approximately one tenth of earnings-related allowance recipients.
Payment of supplementary amounts for the period of employment promotion services will cease at the beginning of 2025. The supplementary amount may still be paid during the next year in situations where the service has begun in 2024. If an employment-promoting service commences by December 31, 2024, the supplementary amount can be paid for the period succeeding the effective date of the legislative amendment. Payments can continue until the end of the provision of the service or for 200 days, whichever occurs earlier. If the service is split into separate periods and these periods do not succeed each other without interruption, the supplementary amount or the increased earnings-related component is not paid for any service period that starts on or after January 1, 2025.
Expense allowance will not be removed
The change in the law does not affect the expense allowance paid during employment promotion services, which is intended for travel and maintenance costs during the service. Typical expense allowances are travel expenses, such as mileage allowances, meal allowances, office supplies or other professional expenses. The expense allowance is 9 euros per day and is tax-free income. It is paid for the days of participation in employment promotion services, for a maximum of five days a week. Expense allowance can only be received if you receive unemployment benefit.
Impact of the change in the law
By mid-December 2024, the unemployment insurance increase was paid to 5,807 recipients in the unemployment insurance fund. The higher the person’s income before unemployment, the greater the increase was. Removal of the supplementary amount typically impacts earnings-related allowance by 60 to 210 euros a month.
The supplementary amount in the mobility allowance will also be removed
The supplementary amount in the mobility allowance will also be removed on 1 January 2025. Mobility allowance can be received when a person, while unemployed, accepts a job that is located far from their current place of residence. The supplementary amount in the mobility allowance has been available if the workplace is more than 200 kilometres away from their place of residence.
