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Grading of earnings-related unemployment benefit comes into effect in the fall

Parliament has approved the government’s proposal for the grading of earnings-related unemployment allowance and a few other changes

In addition to the grading of earnings-related unemployment benefit, the right to earn unemployment benefit from pay-subsidised work will no longer accrue, with a few exceptions. Some age-related exceptions will also be eliminated. This news article summarizes the key changes.

Grading of earnings-related unemployment benefit

This means that as unemployment continues, the level of your daily allowance decreases. The graduation is calculated from the full earnings-related unemployment benefit.

The level of earnings-related unemployment benefit decreases as follows:

  • to 80% after 40 payment days
  • to 75% after 170 payment days

You can use the calculator on the The Federation of Unemployment Funds in Finland’s website(you move to another service) to see how the graduation affects you.

The changes will take effect from September 2, 2024. The change affects new benefit periods starting on or after September 2, 2024, where the benefit is paid based on a 12-month employment requirement. You can read more about the calculation in euros and the 12-month employment condition on our Legislative changes 2024 -page.

Elimination of age-related exceptions

There are several age-related exceptions in earnings-related daily allowance. After the upcoming autumn law change, the following exceptions will be eliminated:

  • the protection of the daily allowance for those aged 58 and older will be discontinued. Before the law change, recipients of the daily allowance who were over 58 years old could maintain or increase their allowance level, not decrease it
  • those aged 60 or older can no longer fulfill the employment condition through employment promotion measures
  • long-term unemployed individuals aged 57 or older will no longer be subject to the employment obligation

The changes will apply when work can be counted towards the employment condition under the euro-based model starting in September 2024.

Pay-subsidised work

In September 2024, work done with pay-subsidies will no longer count towards the employment condition. Exceptions to this rule include pay-subsidised work for those with reduced work capacity or individuals over 60 who have been long-term unemployed. However, pay-subsidised work will only start counting towards the employment condition after 10 months, accruing at 75% of the normal rate.

We will provide more information when the law changes take effect and give examples of how the changes will impact our members.

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