The increased component will be abolished starting from January 1, 2025
The Finnish Parliament has approved a legislative change, which will discontinue the payment of the increased component for the period of participation in employment-promoting services. The increased component of the mobility allowance will also be abolished. The law will come into effect on January 1, 2025.
Under the current law, an increased daily allowance can be paid if a person participates in an employment-promoting service. The increased daily allowance has been payable for a maximum of 200 days.
The increased component will no longer be paid from January 1, 2025. However, if the employment-promoting service began in 2024, the increased component can still be paid in 2025 in the same manner for up to 200 days. If the TE service is organized in separate, non-continuous periods, the increased component will not be paid for any periods that begin on or after January 1, 2025.
With the law change, the increased component will no longer be paid, so participation in the service will no longer affect the daily allowance level. However, the law change will not affect the expense allowance paid for certain employment-promoting services.
With the law change, the increased component of the mobility allowance will also be removed. Under the current law, mobility allowance has been paid with an increase if the workplace is located more than 200 kilometers away.