More legislative changes confirmed: Earnings-related allowance will be staggered starting from 2 September

20.06.2024

On 19 June 2024, the Finnish Parliament approved the rest of the Finnish Government’s proposed legislative amendments that affect unemployment security. As a result, earnings-related allowance will be staggered, certain age-related exceptions will be discontinued and working with pay subsidies will no longer accumulate the work requirement.

The new legislation will be implemented starting from 2 September 2024, i.e. on the same day as the previously approved legislative changes to the work requirement.

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

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.

The new legislation will be applied if the amount of the earnings-related allowance is calculated on or after 2 September 2024. The allowance will not be staggered if payment of the allowance’s maximum period has started on or before 1 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. 

Previously confirmed legislative changes

In addition to the amendments approved on 19 June 2024, there are other previously confirmed legislative changes that will also be implemented starting from September 2024. These changes include the extension of the work requirement to 12 months as well as the “euroization” of the work requirement.

You can read more about these changes from our earlier press release

For most up-to-date information about all the legislative changes, please visit our Legislative Changes 2024 section.