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Increased components of benefits will be discontinued starting from 1 January 2025

05.12.2024

On 4 December 2024, the Finnish Parliament confirmed that the increased component for unemployment benefits will be discontinued starting from 1 January 2025. Currently, the increased component can be paid as part of earnings-related allowance (as well as Kela's basic unemployment allowance or labour market subsidy) when an unemployed jobseeker participates in employment-promoting services, such as labour market training or self-motivated studies.

The Parliament also confirmed that the increased component for the commuting and relocation allowance will be discontinued at the beginning of 2025. Currently, commuting and relocation allowance is paid at an increased rate when an unemployed jobseeker accepts a job located more than 200 kilometers from their residence. In 2024, the increased component of commuting and relocation allowance is €5,29 per day.

The increased components to unemployment benefits or commuting and relocation allowance can still be paid next year in cases where an employment-promoting service or a job located more than 200 kilometers away begins no later than 31 December 2024.

Increased component of earnings-related allowance depends on your income level

The increased component for earnings-related allowance depends on your income level prior to unemployment. You can get an overview of the impact of the change in the table below. The table also takes into account the first tier of the staggering of earnings-related allowance after 40 benefit days.

Source: TYJ
Salary before unemployment Increased unemployment allowance Impact of removal of the increased component Impact of removal of the increased component and staggering to 80 % Earnings-related allowance after removal of increased component and staggering to 80 %
1500 € 1154 € - 64 € - 282 € 872 €
2000 € 1419 € - 112 € - 374 € 1045 €
2500 € 1683 € - 161 € - 465 € 1218 €
3000 € 1948 € - 209 € - 557 € 1391 €
3500 € 2213 € - 257 € - 648 € 1565 €