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Earnings-related unemployment allowance – what do you need to know?

Earnings-related unemployment allowance is an unemployment benefit paid by an unemployment fund, which may be paid to an unemployed or laid-off jobseeker. As the earnings-related unemployment allowance is based on previous earnings, the amount is usually higher than Kela’s general benefit.
Kaksi naista seisoo toimistossa ja hymyilee toisilleen.

What does ‘earnings-related unemployment allowance’ mean?

Earnings-related unemployment allowance is a form of unemployment benefit paid by an unemployment fund to its members. To be eligible for earnings-related unemployment allowance, you must meet certain conditions. Earnings-related unemployment allowance may also be paid, for example, during a temporary lay off or alongside part-time work in the form of a coordinated daily allowance.

Neljä henkilöä työskentelee yhdessä toimistossa ja katsoo kannettavaa tietokonetta.

On what grounds can one receive earnings-related unemployment allowance?

You can receive earnings-related unemployment allowance if:

  1. You are unemployed or on a temporary lay off.
  2. You have joined an unemployment fund in good time and paid your membership fee in accordance with the rules.
  3. You are in employment that meets the working condition.
  4. You have registered as a jobseeker with the employment services.

Your earnings affect whether you are in employment that meets the working condition. Whilst studying, for example, a paid traineeship, part-time work or summer jobs carried out as part of an employment relationship can count towards being in employment that meets the working condition.

How much earnings-related unemployment allowance can one receive (calcurator)?

The amount of the earnings-related allowance depends on your previous earnings. The allowance consists of:

  • a basic component and
  • an earnings-related component

You can use the calculator to estimate the amount of your daily allowance based on your own salary. (in Finnish)

Graduated reduction of earnings-related allowance

The amount of earnings-related unemployment allowance may be affected by:

  • the duration of unemployment
  • income from part-time work and business activities
  • any other benefits

If you are in part-time work or have business income, these will be offset against your earnings-related daily allowance.

Read more.

The waiting period for earnings-related unemployment allowance

Before payment of the earnings-related allowance begins, a qualifying period is set.

Currently, the qualifying period is seven working days. No earnings-related unemployment allowance is paid during this period.

Waiting period:

  • begins when unemployment starts
  • is reset when being in employment that meets the working condition

Read more.

Kaksi henkilöä työskentelee vierekkäin kannettavilla tietokoneilla.

How to claim earnings-related unemployment allowance

Kaksi henkilöä tarkastelee ja tekee muistiinpanoja asiakirjoihin pöydän ääressä.
Register as a jobseeker
Register as an unemployed jobseeker on your very first day of unemployment.
Henkilö kirjoittaa kannettavalla tietokoneella puisella pöydällä.
Submit your application to the unemployment fund
The first claim is usually submitted after two weeks of unemployment.
Mies työskentelee tietokoneella toimistossa, taustalla ikkuna.
Please submit the attachments
Typical attachments include:
• employment contract, job contract
• notice of termination
• notice of lay-off
Henkilö pyöräilee kadulla, taustalla puita ja rakennus.
Continue submitting applications
Renewal applications are usually submitted at four-week or monthly intervals.

The most common reasons for rejecting an application for unemployment allowance

Earnings-related unemployment allowance cannot be paid in the following situations, for example:

  • you are receiving holiday pay or holiday allowance based on your full-time salary
  • you are not an unemployed jobseeker
  • you are receiving maternity or parental allowance
  • you are receiving special pregnancy allowance or special care allowance
  • you are receiving compensation for loss of earnings
  • you receive an old-age pension or an early old-age pension under the National Pensions Act or the Employees’ Pensions Acts (please note that this pension is not the same as a partial early old-age pension)
  • you are receiving an old-age pension based on full years of service
  • you are performing compulsory military service or civilian service
  • you are a full-time student, and your studies are not of short duration nor part of a scheme designed to promote employment
  • you are under 18 years of age
  • you have reached the age of 65. In exceptional cases, earnings-related daily allowance may also be paid after you have reached the age of 65 if you are not receiving an old-age pension and you are on a temporary lay off, have accumulated reserve days, or are prevented from working due to other industrial action. Payment of the allowance will cease at the latest when you reach the age of 68.

Compensation relating to the termination of employment may also delay the start of daily allowance payments.

Read more

How long is earnings-related unemployment allowance paid for?

The maximum duration of earnings-related unemployment allowance depends on your employment history and your age.

The allowance can usually be paid for:

  • 300 days
  • 400 days
  • 500 days in certain circumstances

Earnings-related unemployment allowance is paid for a maximum of five days a week.

 

Frequently asked questions about earnings-related unemployment allowance (FAQ)


Can you receive earnings-related allowance whilst working part-time?
Yes, provided you are not working part-time of your own volition. In this case, you may be paid an adjusted earnings-related allowance.

Does holiday pay affect earnings-related daily allowance?
Yes. Holiday pay may delay the start of your earnings-related allowance.

Can illness prevent you from receiving earnings-related daily allowance?
Yes, but in some situations you may still be paid earnings-related unemployment allowance, for example after the maximum period for sickness benefit has ended.

When should you submit your application?
You should submit your application as soon as the first eligibility period ends.

Do you need help applying for earnings-related unemploymentallowance? Contact Pro´s experts
You can find up-to-date guidance, calculators and online services on the Unemployment Fund Pro website.

Membership of the Trade Union Pro also provides security in the event of unemployment

Membership of the Trade Union Pro includes not only membership of the union itself but also membership of the Unemployment Fund Pro. As a member, you may be entitled to earnings-related unemployment allowance during periods of unemployment or temporary lay off, provided that you are in employment that meets the working condition. Membership of the unemployment fund helps to safeguard your livelihood during times of change in your working life.