All the legislative changes taking effect this September

07.08.2024

Over the past year, the Finnish Parliament has approved several government-proposed legislative changes affecting the conditions and amount of earnings-related allowance. Below, we have compiled a list of all the changes that will take effect starting from 2 September 2024.

Extension and "euroization" of the work requirement

The work requirement that entitles to earnings-related allowance will be extended from 6 months to 12 months. This means that you must work for 12 months during a 28 month review period before being eligible for earnings-related allowance. The work requirement must be accumulated while you are a member of an unemployment fund.

At the same time, the work requirement becomes income-based, i.e. the work requirement is "euroized". If your monthly salary is 930 euros or more, you will accumulate a full month of work requirement. The work requirement can also be accumulated in periods lasting half a month. In this case, your monthly income must be 465-929 euros.

If you have accumulated your work requirement in hour-based weeks before the legislative change, the weeks will be converted into wage-based months automatically. The 12-month income-based work requirement will be applied if your work requirement is fulfilled on or after 2 September 2024.

Staggering of earnings-related allowance

The staggering of earnings-related allowance means that the amount of the allowance will decrease as the duration of the unemployment increases.

After 40 benefit days (approximately 8 weeks), the amount of earnings-related allowance will decrease to 80 % of the full allowance. Additionally, after 170 benefit days (approximately 34 weeks), the amount will decrease to 75 % of the full allowance. If you are working part-time, your benefit days may accumulate more slowly than for those who are fully unemployed, so the staggering of the benefit may occur later.

Earnings-related allowance can never be smaller than Kela’s basic daily allowance. Also, when you fulfill your work requirement again, the amount of the allowance returns to full and the maximum payment period starts over.

The new legislation is applied only if the amount of your earnings-related allowance is calculated on or after 2 September 2024.

Discontinuation of age-related exceptions

Certain age-related exceptions will be discontinued starting from 2 September 2024. This means that:

the obligation of municipalities to employ individuals aged 57 years or older to employment that meets the work requirement will end
the level of earnings-related allowance for individuals aged 58 years or older will no longer be protected in a situation where the amount of the earnings-related allowance decreases when recalculated.
individuals aged 60 years or older will no longer be able to fulfill their work requirement by participating in employment-promoting services. At the same time, the right to earnings-related allowance during employment-promoting services ceases after the maximum payment period has expired.

Working with pay subsidies will no longer accumulate the work requirement

Starting from 2 September 2024, working with pay subsidies will no longer accumulate the work requirement necessary for earnings-related allowance eligibility. However, pay-subsidized work fully extends the 28-month review period, i.e. the period within which the work requirement must be met.

If the pay subsidy has been granted because of reduced working capacity or for the employment of a long-term unemployed person over the age of 60, part of the work can be accepted for the employee's work requirement.

Read more about all the legislative changes in 2024 here.