Child increases and standard entitlement will be abolished on April
Amendments to the Unemployment Security Act will enter into force on 1.4.2024, as a result of which child increases and the standard entitlement of adjusted daily allowance will be abolished
Child increases are no longer paid
As of 1.4.2024, you will no longer be entitled to child increases for unemployment security. Child increases will be paid until 31.3.2024 in the normal way, even if their payment date is after 1.4.2024. As of 1.4.2024, child increases will not be paid in connection with mobility allowance either.
The amount of child increases until 31.3.2024 is:
- EUR 5.84/day for one child
- EUR 8.57/day for two children
- EUR 11.05/day for three children or more
The abolition of child increases will thus affect the amount of earnings-related unemployment allowance by an average of EUR 126–238 per month, depending on the number of children.
Please note that if you have maintenance debts or if you receive child support, the abolition of child supplements may affect your situation. In this case, you should read Kela’s press release on the topic (in Finnish): Työttömyysturvan lapsikorotukset poistuvat 1.4.2024 – selvitä muutoksen vaikutus tilanteeseesi, jos olet elatusvelvollinen tai saat elatustukea(opens in new window, you move to another service)
The standard entitlement of adjusted daily allowance will be abolished
The standard entitlement of adjusted daily allowance refers to the amount of money that an unemployed person is allowed to earn during the adjustmen period without affecting the amount of daily allowance. Until 31.3.2024, the amount of the standard entitlement is EUR 300 during the one-month adjustment period and EUR 279 during the four-calendar week adjustment period. Half of the adjusted income has reduced the amount of full daily allowance.
As of 1.4.2024, the standard entitlement will be phased out, after which half of the adjusted income will reduce the amount of daily allowance. The abolition of the standard entitlement thud reduced the amount of adjusted daily allowance, but still the adjusted income does not reduce the amount of daily allowance in its enitirety.
The amendment will be applied if the application period begins on or after 1.4.2024. For example, if the application period is 15.3.2024 – 14.4.2024, the standard entitlement will still be taken into account during that entire application period and the legislative amendment would not begin to affect the amount of adjusted daily allowance until the next application period 15.4.2024 – 14.5.2024.
Submit your application according to your normal application rhythm, regardless of the removal of the standard entitlement. For example, if your application rhythm is the 15th of the month – the 14th of the following month, submit your application normally for the period 15.3.2024 – 14.4.2024. Deviations from the application rhythm can only be made in the case of a first application or if unemployment ends in the middle of the application period.
Example 1: The standard entitlement is still in use
- Anna’s monthly salary is EUR 2700, the amount of full daily allowance is EUR 74.85 / day
- Adjusted income is EUR 1000 / month
- The standard entitlement is EUR 300 during the one-month adjustment period
- Income that reduces the amount of full daily allowance: (EUR 1000 – EUR 300) * 0,5 = EUR 350/month, i.e. EUR 350 / 21,5 = EUR 16.28 / day
- The amount of adjusted daily allowance: EUR 74.85 – EUR 16.28 = EUR 58.57 / day, average EUR 1259.27 / month
Example 2: The standard entitilement no longer in use
- Anna’s monthly salary is EUR 2700, the amount of full daily allowance is EUR 74.85 / day
- Adjusted income is EUR 1000 / month
- Income that reduces the amount of full daily allowance: EUR 1000 * 0,5 = EUR 500/month, i.e. EUR 500 / 21,5 = EUR 23.26 / day
- The amount of adjusted daily allowance: EUR 74.85 – EUR 23.26 = EUR 51.60 / day, average EUR 1109.32 /
After the removal of the standard entitlement, the difference in these examples is on average EUR 150 per month.
You can read more about these and other legislative changes in the Legislative changes 2024 section on our website, which we update regularly. You can access the Legislative changes -page from the button below.
