Autumn 2024 legislative changes – What will change?
In September 2024, several legislative changes will come into effect, which may impact our members’ entitlement to and amount of unemployment benefits
In September 2024, several legislative changes will come into effect, which may impact our members’ entitlement to and amount of unemployment benefits. In this news article, we will review the upcoming changes and their implications. We will provide practical examples, including the new euro-based employment condition and the graded unemployment benefit system.
Please note that these are examples, and many other factors can affect entitlement to unemployment benefits. The right to unemployment benefits and its amount can always be determined ultimately based on the application, supporting documents, and the statement provided by the TE Office.
Extension of employment and membership conditions
On September 2, 2024, a legal change will come into effect, which will double the length of the employment condition, changing it from 26 weeks to 12 calendar months. At the same time, the membership condition will also change from 26 weeks to 12 months.
The extension of the employment condition means that in the future, entitlement to unemployment benefits will require that the member has accumulated 12 calendar months of employment condition during their membership period in the unemployment fund. However, the length of the review period has not changed; the employment condition must still be accumulated within a 28-month review period.
This 12-calendar-month employment condition will apply if the employment condition required for receiving benefits can be accounted for according to the new euro-based model from September 2024 or later. An exception to this is if the employment condition was met through work organized under the employment obligation and if that work or service started no later than September 1, 2024.
It is also important to note that if you have already met the 26-week employment condition at the start of a previous unemployment period and under the previous law, the payment of unemployment benefits can continue according to that previous unemployment benefit period if the new 12-calendar-month employment condition is not yet met when you become unemployed again. This, of course, requires that other conditions for entitlement to benefits are also met. See below for an example of this and two other situations regarding the 12-calendar-month employment condition.
Teemu has been a member of the unemployment fund since January 1, 2024. He is employed in a fixed-term full-time job from January 1, 2024, to March 31, 2025, meaning he will be unemployed starting April 1, 2025.
Teemu applies for unemployment benefits starting April 1, 2025. His 12-calendar-month employment condition is fulfilled during his membership period. Since all other conditions for receiving benefits are also met, Teemu is eligible for unemployment benefits.
Matti starts his first job on August 1, 2024, and becomes a member of the unemployment fund at the same time. His fixed-term employment is from August 1, 2024, to May 31, 2025. Matti becomes unemployed starting June 1, 2025, and applies for benefits from the fund.
Due to the recent legal changes, unemployment benefits require that the 12-calendar-month employment condition is met during the membership period and within a 28-month review period. Therefore, Matti does not meet the condition for receiving benefits from the fund starting June 1, 2025. Matti can, however, apply for unemployment benefits from Kela.
Anna joined the unemployment fund on August 1, 2023. She was employed full-time from August 1, 2023, to June 2, 2024. Anna became unemployed and applied for unemployment benefits starting June 3, 2024. Her employment condition (at that time 26 weeks) was fulfilled during this full-time employment from August 1, 2023, to June 2, 2024. Anna’s new unemployment benefit period began in June 2024 (with a maximum duration of 300, 400, or 500 days), and she started accruing a new employment condition.
Anna was unemployed during the summer of 2024. She then started a new fixed-term full-time job from August 1, 2024, to May 31, 2025. Anna became unemployed again starting June 1, 2025. Now, the employment condition has changed to 12 calendar months. The new unemployment benefit period started in June 2024, and Anna has not accrued 12 calendar months of employment between June 2024 and May 2025.
However, Anna can still receive unemployment benefits based on the unemployment benefit period that began in June 2024, provided that other eligibility requirements are met. In other words, benefits could be paid according to the summer 2024 unemployment benefit period and the maximum duration counter that started in the summer of 2024.
It is also important to note that if you have already met the 26-week employment condition at the start of a previous unemployment period and under the previous law, the payment of unemployment benefits can continue according to that previous unemployment benefit period if the new 12-calendar-month employment condition is not yet met when you become unemployed again
Euro-based employment condition
In addition to extending the employment condition, it will also become income-based, meaning it will be euroised. This change means that the employment condition will accumulate based on the salary paid for the work performed. Up until September 2024, the employment condition is accumulated based on the number of hours worked.
Henceforth, the weekly number of hours worked will no longer be tracked for the employment condition. Instead, it will be required that a minimum salary of €930 is paid in a month for the work to count towards the employment condition.
The employment condition can also accumulate in half-months if the salary paid in a calendar month is at least €465 but less than €930. Two separate half-months can then combine to form one full month of the employment condition.
Established salary income can be taken into account in the employment condition. Furthermore, the salary must still meet the collective agreement’s standards, or if there is no collective agreement in the sector, the full-time salary must be at least €1399 per month (2024 level).
When fulfilling the employment condition, the salary income is generally attributed to the calendar month in which it was paid. Therefore, the right to daily allowance cannot start in the middle of a month if the last month of employment needs to be included in the employment condition and if the salary for the ending employment is paid only in the month following the end of employment. Below are two examples illustrating how the timing of salary payments affects the commencement of the daily allowance entitlement.
Example 1: Salary payment date during the work month
Mari has a fixed-term employment from January 1, 2025, to December 15, 2025. Her salary is paid in the same month in which the work is performed (e.g., December salary is paid in December). Mari’s monthly salary is €3000.
In December, Mari is paid half of her monthly salary, €1500, for the work done in December, which means that December will count as a full qualifying month for the employment condition. Mari’s entitlement to unemployment benefits could thus start on December 16, 2025.
However, it should be noted that if Mari has been a member of the unemployment fund only from January 1, 2025, the entitlement to unemployment benefits may not begin until January 1, 2026, when the 12-month membership requirement is met.
Example 2: Salary payment date in the month following the work month
Minna has a fixed-term employment from January 1, 2025, to December 15, 2025. For her, the final month of employment is crucial for fulfilling the employment condition needed to qualify for unemployment benefits.
Her salary is paid in the month following the work month (e.g., December 2025 salary is paid in January 2026). Minna’s monthly salary is €3000.
In December, Minna works until the 15th and receives half of her monthly salary, €1500, in January. Since the salary for December is paid in January, Minna’s employment condition will only be considered complete as of January 31, 2026, due to the salary payment timing. Therefore, her entitlement to unemployment benefits can only begin from February 1, 2026.
Sampo starts a part-time job on January 1, 2025. His salary is paid within the same month in which the work is performed. Sampo’s monthly salary alternates between €1000 and €900: €1000 in January, March, and so on; €900 in February, April, and so on.
For the calendar months in which Sampo receives €1000, he meets the full month’s employment condition. For the months in which he receives €900, he only meets half of the employment condition for those months.
Sampo will fulfill the 12-calendar-month employment condition in April 2026. The full months count includes January, March, May, July, September, November (2025), and January and March (2026), totaling 8 months. Half-months accumulated during this period are February, April, June, August, October, December (2025), and February and April (2026), totaling 4 months.
Therefore, the earliest Sampo can qualify for unemployment benefits is May 1, 2026.
Grading of earnings-related daily allowance
Currently, the amount of full unemployment benefit remains the same for the entire maximum duration. Starting in September 2024, a legislative change will introduce grading of the unemployment benefit level.
Grading means that the amount of unemployment benefit decreases as unemployment progresses as follows:
- To 80% after 40 benefit days
- To 75% after 170 benefit days
However, the unemployment benefit amount will always be at least equal to the basic unemployment benefit.
Grading will apply to benefits paid for work done on or after September 2, 2024. Therefore, grading will not affect any ongoing unemployment benefit periods that began before this date.
If the applicant receives graded adjusted benefits, the grading counter accumulates more slowly. The graded adjusted benefit is converted into full graded benefit days, which accumulate toward the maximum duration and grading counter.
You can estimate the impact of grading on the benefit amount using the calculator available on the website of The Federation of Unemployment Funds in Finland (TYJ). The calculator is in Finnish.
Ville was employed full-time from January 1, 2024, to December 31, 2024, and becomes unemployed starting January 1, 2025. After periodisartion of holiday compensation and waiting period, Ville’s unemployment benefits start on January 29, 2025. His full unemployment benefit amount is €75.00 per day.
For the first 40 unemployment days, from January 29, 2025, to March 25, 2025, Ville receives the full benefit amount of €75.00 per day.
After the first 40 days, the benefit amount decreases to 80% of the full amount, so after the first gradation, Ville’s daily benefit is €60.00.
Once Ville has received unemployment benefits for a total of 170 days, the benefit amount is further reduced to 75% of the original full amount. After the second gradation, Ville’s daily benefit is €56.25.
Summary:
- From January 29, 2025, to March 25, 2025, Ville’s benefit is €75.00 per day (full rate for the first 40 benefit days).
- From March 26, 2025, to September 23, 2025, Ville’s benefit is €60.00 per day (80% of the full rate after the first 40 days, up to 170 days).
- From September 24, 2025, onwards, Ville’s benefit is €56.25 per day (75% of the full rate after 170 days).
Maija’s employment ended on June 2, 2024, and she applied for unemployment benefits on June 3, 2024. Maija’s employment condition was met as of June 2, 2024, and her benefits began on July 1, 2024, after the periodisation of holiday compensation and waiting period.
Maija starts a full-time substitute position on August 1, 2024, which lasts until December 31, 2024. When she becomes unemployed again starting January 1, 2025, her 12-calendar-month employment condition will not have been met anew, so the payment of unemployment benefits can continue based on the previous unemployment benefit period (i.e., at the full benefit rate and using the previous maximum duration calculator).
Since the benefits are not being paid based on work done after September 2, 2024, but rather on the benefit period that started in the summer of 2024, the gradation of unemployment benefits does not yet apply to Maija. Therefore, she can receive full unemployment benefits for the entire maximum duration (300, 400, or 500 days), provided that other eligibility conditions are met.
Sini is applying for adjusted daily allowance for the period from January 1, 2025, to January 31, 2025. Her full unemployment benefit amount is €100.00 per day. Sini’s benefit has been reduced to 80% of the full amount, so her current daily benefit is €80.00.
During the adjustment period of the month, Sini receives €500.00 in adjusted income. This amount decreases her daily benefit by €250.00 (€250.00 / 21.5 = €11.63 per day).
Since the income reduction in the adjustment is applied to the graded benefit amount, the adjusted benefit amount for January is €80.00 – €11.63 = €68.37 per day.
Sini will receive a total of €1,572.51 in benefits for January 2025 (23 days * €68.37 per day). For January 2025, the maximum duration counter and the gradation counter accumulate a total of:
€1,572.51 / €80.00 = 19 days
Pay-subsidised work
Previously, pay-subsidised work accumulated employment condition at a rate of 75% of its duration. For example, to meet a 26-week employment condition requirement, 35 weeks of pay-subsidised work were needed.
Starting from September 2, 2024, pay-subsidised work will only count towards the employment condition if it is granted to employ a person with reduced work capacity or a long-term unemployed individual over 60 years old.
In such cases, however, the employment condition will only start accumulating after the pay-subsidised work has lasted for 10 months. During this “continuation period” of pay-subsidised work, 75% will count towards the employment condition. The first 10 months of pay-subsidised work, which do not accumulate employment condition, will extend the review period for employment condition.
Age-related exceptions
With the legal changes coming into effect in September, several age-based exceptions will be abandoned. After the changes:
- Individuals aged 57 and older will no longer be eligible for the employment obligation program, which previously guaranteed them a job.
- The level of unemployment benefits for individuals who have turned 58 will no longer be protected.
- Individuals aged 60 and older will no longer be able to fulfill the employment condition through employment-promoting services.
Termination of the employment obligation
Employment obligation refers to a situation where a jobseeker aged 60 or over has started TE services or a job that they have been assigned to based on the employment obligation. In such cases, the time spent in the service could be counted towards the employment condition, and unemployment benefits could be paid during the service period without being affected by the maximum duration.
This employment obligation will cease to apply if the obligation starts on or after September 2, 2024.
If work or service has been arranged based on an obligation that began no later than September 1, 2024, the protections related to the level of unemployment benefits and the rules for accumulating time in work or service will still apply. In such cases, the length of the work requirement will also be six months.
Protection of daily allowance level for those aged 58 and over
In the Future, the Benefit Level Protection for Applicants Aged 58 and Over Will No Longer Apply.
Previously, the benefit level for individuals aged 58 and over was protected such that if they fulfilled the employment condition again, the basis for their unemployment benefit was not recalculated unless their salary had increased.
TE-services for those aged 60 and over
In the future, individuals who are 60 years old or older will no longer be able to accumulate employment condition through TE services. Additionally, the regulation allowing unemployment benefits to be paid after the maximum duration has been reached in such cases will be abolished. Previously, the benefit amount remained unchanged if the employment condition was partially fulfilled through such TE services.
