Application period, adjustment period and payment period – what is the difference between them?
Our members may come across difficult-sounding terms when applying for a benefit. Application period, adjustment period and payment period are examples of terms that can easily get confused and whose meaning can be difficult to grasp. In this article, we will explain the meaning of these terms and go through examples of application, adjustment and payment periods
Application period
The application period is the period for which the benefit is claimed. When unemployment begins, the application period for the first application is usually two full calendar weeks. After this, the application period is always either four calendar weeks or one month. The application period of one month can be other than the application period of a calendar month, for example 19.8.2023 – 18.9.2023.
When handling the first application, the unemployment benefit specialist examines the application rhythm suitable for the applicant’s situation, i.e. whether the application period will be four calendar weeks or one month in the future. The determination of the application period may be affected by, for example, the pay period and pay date of part-time work, possible part-time business activities or social benefits affecting the daily allowance. The future application rhythm can only be confirmed when the first application is processed, and the application processor will send the applicant an information letter about the future application rhythm.
If the applicant’s unemployment ends in the middle of the normal application period, the application period for the last application may be different from the normal period. In this case, the application can be submitted until the end of unemployment, and the application period may be shorter than usual.
The applicant’s first day of unemployment is 19.9.2023. The application period for the first application can be two full calendar weeks, so the applicant can submit the first application no earlier than 8.10.2023 from the period 19.9.2023 – 8.10.2023.
In addition, the applicant is paid child home care allowance, which is a benefit deducted from earnings-related unemployment allowance and is paid at a monthly rhythm. For this reason, the application rhythm for the daily allowance is also determined by the rhythm of the month.
In this case, the applicant can submit a follow-up application for a period of one month from 9.10.2023 to 8.11.2023, and in the future also at the same monthly rhythm. Exceptions to this application period can usually only be made when unemployment ends.
The applicant’s last day of unemployment is 30.9.2023. The applicant’s application rhythm has been four calendar weeks, and the previous application period was from 14.8.2023 to 10.9.2023. The applicant can submit the last application for a shorter application period than usual, i.e. from 11.9.2023 to 30.9.2023.
Adjustment period
The adjustment period refers to the period during which events affect the benefit payable and its amount. For example, part-time pay paid during the adjustment period affects the amount of daily allowance during the adjustment period. Therefore, it is not the time when the work is done that affects the adjustment, but the adjustment period in which the pay date falls.
Often the adjustment period is the same as the application period, but in the case of the first application, for example, the application and adjustment periods may be of different lengths. The adjustment period is always four calendar weeks or a month, even if the application period is shorter at the beginning or end of unemployment, for example.
The applicant’s full-time employment ends on 3.9.2023, so he or she will apply for earnings-related unemployment allowance starting from 4.9.2023. The applicant also has a part-time work, which is still ongoing.
The regular pay day for part-time work is the last banking day of the month. The applicant submits his or her first application for two full calendar weeks, i.e. from 4.9.2023 to 17.9.2023. The unemployment benefit specialist examines the applicant’s overall situation, and in this case, the adjustment period is determined to be from 18.8.2023 to 17.9.2023.
During the application period of the first application 4.9.2023 – 17.9.2023, the salary paid during the adjustment period 18.8.2023 – 17.9.2023, i.e. the salary paid on 31.8.2023, will then be adjusted. Thus, earnings-related unemployment allowance can be adjusted for income from part-time work or occasional work paid before the actual start of unemployment, if the payment date falls within the adjustment period for the applicant.
The applicant starts full-time employment on 19.9.2023, when his or her unemployment will end. In addition, the applicant has a part-time work during which he/she has applied for adjusted daily allowance in application periods of one calendar month, i.e. the previous application was from the application period 1.8.2023 – 31.8.2023.
The regular pay day for part-time work is the last banking day of the month. The applicant submits the application for the period 1.9.2023 – 18.9.2023. The applicant’s adjustment period is one calendar month. The application for the period 1.9.2023 – 18.9.2023 can only be processed once the adjustment period has ended and all possible income to be paid during the adjustment period is known.
In this case, a situation may arise in which the salary for part-time work that has been paid only after the end of unemployment will have to be adjusted. In this case, during the application period 1.9.2023 – 18.9.2023, the income from part-time work paid on 29.9.2023 would be adjusted.
The adjustment period is always four calendar weeks or a month, even if the application period is shorter at the beginning or end of unemployment, for example.
Payment period
The payment period refers to the period for which the daily allowance is paid. The payment period may differ from the application period if, for example, a waiting period is set or if part of the application period is rejected.
The applicant has submitted an application for the application period 20.8.2023 – 19.9.2023. The applicant has been granted other benefit preventing earnings-related unemployment allowance as of 10.9.2023, and the benefit can only be paid for the period 20.8.2023 – 9.9.2023. In this case, the payment period is 20.8.2023 – 9.9.2023.
The applicant has become unemployed for the first time and has submitted his or her first application for the period 1.9.2023 – 17.9.2023. The applicant has a waiting period of five working days for the period 1.9.2023 – 7.9.2023. No earnings-related daily allowance is paid for the waiting period. In this case, the applicant’s first payment period for earnings-related unemployment allowance is for the period 8.9.2023 – 17.9.2023.
