Overview of the upcoming legislative changes in Fall 2024
06.05.2024
The Parliament has approved several legislative amendments to unemployment benefits and earnings-related allowance. The first changes were implemented in January and in April.
The next set of amendments will be implemented from the beginning of September. Starting from 2 September, the work requirement needed for earnings-related allowance will be extended to 12 months and the accumulation of the work requirement will become income based.
In addition, the Parliament is currently processing other legislative changes, such as the staggering of earnings-related allowance. These changes have not yet been approved.
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 starting from 2 September 2024.
After the implementation of the amendment, 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 the work requirement becomes income-based, i.e. the work requirement is "euroized".
Currently, the work requirement is accumulated from calendar weeks during which there have been at least 18 hours of paid working time. After the legislative change, the work requirement will be accumulated for months when you have earned at least 930 euros while being a member of an unemployment fund. The work requirement can also be accumulated in periods lasting half a month. In this case, your monthly income must have been 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 September 2, 2024.
Legislative changes currently being processed
In addition to the approved amendments, the government has proposed other legislative changes that affect unemployment benefits and earnings-related allowance. These are planned to be implemented in September 2024 but since the legislative changes are still being processed by the Parliament, their content and schedules are subject to changes. Please visit our Legislative Changes 2024 section for most up-to-date information.
- Staggering of earnings-related allowance
After eight weeks of unemployment, the amount of earnings-related allowance would decrease to 80 % of the full allowance. Later, after 34 weeks of unemployment, the amount would decrease to 75 % of the full allowance.
- Discontinuation of the age-related exceptions
Daily allowance levels would not be protected for individuals aged 58 years or older. The obligation of municipalities to employ those who have reached the age of 57 to employment that meets the work requirement would be removed. Individuals aged 60 years or older could no longer fulfill the work requirement needed for earnings-related allowance by participating in employment-promoting services.
- Pay subsidies and work requirement
Working with pay subsidies would no longer accumulate the work requirement necessary for earnings-related allowance eligibility. Currently, working with pay subsidies accumulates the work requirement at a rate of 75 % (every fourth week is not counted). However, pay-subsidized work would still accumulate the work requirement for those who have reached the age of 60 or have a reduced ability to work.