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.
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
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.
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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.