The Finnish Government is proposing to make a number
of changes to unemployment security rules, which would take effect on 1 January
2023. Please note that the legislative
reform required to implement the new rules is yet to be approved by the
Parliament of Finland. We will provide updates as the reform progresses and we
learn more about its effect.

Switch to a euro-denominated employment condition
requirement

Under
the new rules, the amount of an unemployed person’s daily allowance would be
calculated based on their monthly earnings. At present, whether or not an
applicant satisfies the employment condition requirement depends on the number
of hours they have worked. To satisfy the employment condition requirement,
applicants must have worked at least 18 hours a week (in the case of, for
example, psychologists, early childhood education teachers, researchers, informaticians
and trainers) or, in the case of school-based teachers, at least eight hours a
week. Under
the new rules, eligibility for unemployment benefits would depend on the
applicant’s monthly earnings instead. Half months would also count towards satisfying
the employment condition requirement.

 Imposition of a job-seeking requirement on applicants
engaged in independent studies

The Nordic labour market service model is due to enter
into force on 2 May 2022. The model introduces a number of new requirements relating
to job-seeking. The obligation to seek employment does not
currently apply to individuals who are engaged in independent studies. The Government is proposing to abolish the
exemption and also extend the job-seeking requirement to independent students. The rule change would not apply to students
who do not have a professional qualification,
however. The Government proposes
for the changes to take effect at the start of 2023.

 Copyright royalties no longer
to be taken into account in the adjustment of allowances

Under
the new rules, copyright royalties would no longer count as income based on
which unemployment allowances are adjusted. Income from copyright royalties
would therefore no longer reduce the amount of an applicant’s earnings-related
allowance. At present, copyright royalties are taken into account in the
calculation of adjusted allowances.

Reform of pay
subsidy rules

The
Government is proposing to impose certain restrictions on the use of pay
subsidies in connection with the reform of the laws governing subsidised work. Going forward, the largest employers would no
longer be able to claim 100% pay subsidies. The rule change would also make pay
subsidies available to smaller employers.

Please see the Finnish
Government’s website for more information.