The government proposes to abolish the increased component starting from January 1, 2025
According to the government proposal, the increased component of unemployment benefits and the increased component of mobility allowance would be discontinued. The law would come into effect on January 1, 2025.
On September 23, 2024, the government submitted a proposal to Parliament stating that the increased component paid for employment-promoting services would be abolished. At the same time, the increased component of mobility allowance would also be abolished.
Abolition of the increased component / increased earnings-related component
According to the proposal, the increased component/increased earnings-related component of unemployment benefits would no longer be paid for the period of employment-promoting services if the service begins on or after January 1, 2025. If the service starts before January 1, 2025, the increased component could be paid also after the law comes into effect until the end of the service, but for a maximum of 200 days.
If the service is organized in segments as separate entities such that the segments do not connect continuously to each other, the increased component or the increased earnings-related component would not be paid for any service segment that begins on or after January 1, 2025.
After the abolition of the increased earnings-related component, the unemployment allowance would be paid for the period of employment-promoting services at the same amount as when being unemployed otherwise. According to the proposal, participants in the employment-promoting service can still receive expense allowance (9 or 18 euros per day), excluding independent studies.
Abolition of the increased component of the mobility allowance
According to the government proposal, the payment of the increased component of the mobility allowance would also be abolished if the work or work-related training begins on or after January 1, 2025. In that case, the mobility allowance would correspond to the amount of the basic daily allowance, even when the workplace or the location of the training is more than 200 kilometers away from the person’s place of residence.
If the work or work-related training that serves as the basis for the mobility allowance begins no later than December 31, 2024, the mobility allowance could be paid at an increased rate in accordance with the law that is in effect at the start of the support period.
In 2024, the amount of the mobility allowance has been 37.21 euros per day. The increased component has been 5.29 euros per day.
You can read more about the mobility allowance through the button below.
You can find the full government proposal here (in Finnish):
NOTE! The processing of the legislative change is still ongoing in Parliament, so there may still be changes to the proposal, its content, and timelines. We will provide more information on the matter once the proposal has been discussed in Parliament.
