Entitlement to an earnings-related allowance from 2 September 2024
The conditions for paying out and receiving earnings-related allowances changed on 2 September 2024. From September onwards, you can accrue your entitlement to an earnings-related allowance by fulfilling a 12-month employment requirement with an income of €930 per month for 12 months. If you earn at least €465 per month, you will accrue half a month towards the employment requirement.
You can receive an earnings-related allowance if you are unemployed, temporarily laid off or employed part-time if your hours have been reduced at the employer’s initiative. You need to register as an unemployed jobseeker with the Employment and Economic Development (TE) Office on first day of unemployment at the latest and be ready to accept a full-time job. Your job search must be active when you apply for an earnings-related allowance.
The earnings-related allowance is applied for retroactively in periods of one month or four calendar weeks (Monday to Sunday). If you are entirely without work, you can send the first application after the first two full calendar weeks. Check which documents you need to include with your application and whether you meet the conditions for earnings-related allowance.
Appendices related to the earnings-related allowance
Conditions for receiving an earnings-related allowance
- You have been a member of the unemployment fund for at least 12 months
- You have fulfilled the employment requirement during your membership
- You have registered as an unemployed jobseeker with the TE Office
- You are between 18 and 64 years old. You are also entitled to the daily allowance if you are between 65 and 68 years old and temporarily laid off.
- You fulfilled the employment requirement after you reached the age of 18
- You are unemployed, temporarily laid off or in part-time work
The conditions for paying out earnings-related allowances will change on 2 September 2024
The biggest change concerns the employment history required to pay an earnings-related allowance. From September onwards, one year of work is required. You must have been a member of the unemployment fund throughout the work—the membership requirement will also rise to 12 months.
- Employment requirement up to 1 September 2024: 26 calendar weeks (6 months)
- Employment requirement from 2 September 2024: 12 calendar months (1 year), membership requirement: 12 months.
What is changing?
- From September onwards, the entitlement to a daily allowance will no longer depend on the number of hours worked before unemployment.
- In the future, the applicant’s fulfilment of the employment requirement will depend on their income.
- Income of at least €930 per calendar month corresponds to one month of the earnings-related employment requirement. Income of at least €465 per calendar month corresponds to half a month of the employment requirement. For example, the entitlement to an earnings-related allowance could arise after working for 10 full months and 4 half months.
- When the amended law takes effect, the accrual of the entitlement to a daily allowance will be determined according to when the wages or salary are paid. The earning period (when the work was done to accumulate the income) is only relevant when wages, salaries, or bonuses are paid for a long period or the payment is delayed for a reason attributable to the employer.
Example:
You do gig work for various employers in October and November and receive payment from all of them in December. Your entitlement to a daily allowance only accrues for December. However, bonuses earned for an entire year are divided so that they affect the entire year.