Changes to the law on unemployment security
Several amendments to the law on unemployment security came into force on 2 September 2024, affecting the amount of the earnings-related allowance and the criteria for determining the earnings-related allowance. The amendments apply to everyone who receives an earnings-related allowance, but several of the amendments will only affect the daily allowance later on.
Income-based employment requirement
The employment requirement for unemployment security has become income-based. The income-based approach means that your entitlement to a daily allowance will depend on your earnings before unemployment rather than the number of hours you worked.
You will accrue one month towards the employment requirement when you are paid at least €930 in the calendar month. You will accrue half a month towards the employment requirement when you are paid at least €465 in the calendar month.
The income-based employment requirement will apply to wages and salaries earned and paid on or after 2 September 2024.
The employment and membership requirements are 12 months
The earnings-related employment and membership requirements have been extended from six (6) to twelve (12) months. You need to fulfil the 12-month membership and employment requirements before you can receive an earnings-related allowance. If you have been a daily allowance recipient before 2 September 2024, you will be paid a daily allowance according to the previous practice.
Gradation of the earnings-related allowance
This means that the amount of unemployment security will decrease
- to 80% of the full daily allowance after eight weeks of unemployment (after 40 days of benefits) and
- to 75% of the full daily allowance after 34 weeks of unemployment (after 170 days of benefits).
The earnings-related allowance will be gradated if the employment requirement, which is a prerequisite for paying the earnings-related allowance, includes work under the new income-based model in or after September 2024.
Gradation will not affect the daily allowance if your daily allowance period began no later than 2 September 2024. Gradation will only affect the daily allowance once you have fulfilled the 12-month employment requirement again.
Age-related exceptions to be abolished
These will be abolished:
- The level of daily allowance for persons aged 58 and over has been protected. The protection took effect when the person was in a lower-paid job and became unemployed again, causing the amount of the daily allowance to be recalculated.
- Persons aged 57 or over have been able to access the employment obligation, which guarantees them a job.
- Based on the employment obligation, persons aged 60 or over have been able to fulfil their earnings-related employment requirements in a service that promotes employment. The amount of the daily allowance has not been recalculated if the employment requirement is partly fulfilled based on such a service.
These exceptions will be abolished on 2 September 2024. If you are within the scope of age-related exceptions and are paid a daily allowance, the exceptions will be abolished the next time you fulfil the 12-month employment requirement.
Pay subsidy work (palkkatukityö)
Pay subsidy work does not count towards the employment requirement if the work begins on or after 2 September 2024 unless you are at least 60 years old or the subsidy is granted to hire a person with reduced working capacity.