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Adjusted job alternation compensation

Working during job alternation leave

The gross earnings from part-time or occasional employment are taken into account in the payment periods of job alternation compensation during which the salary is paid to you. You must inform the fund of your employment as soon as it starts, using a change notification or by using our messages-fuction in Openetti. Inform also on an estimated payment date. When the salary is paid to you, send a copy of your payslip to the Fund.

If you have worked for your own employer, you must provide a certificate from the employer about your working days. You are not entitled to job alternation compensation for such days, but your job alternation leave will be spent and will then continue according to the original agreement. Work done for the same municipality/city is also considered as work for the same employer.

Income from part-time business activities (including ownership of a farm or forest estate) is adjusted, usually on the basis of the tax decision regarding your last confirmed personal taxes and the information in its breakdown. A labour policy statement is always required from the TE Office for business activities, so if you are self-employed or own a farm or forest estate, inform the TE Office of this in advance, before the start of your job alternation leave. If your business activities are full-time, you cannot receive job alternation compensation.

Effect of earned income on job alternation compensation

If your job alternation compensation is 70% of the unemployment allowance, 35% of your gross earnings will reduce the full amount of the job alternation compensation in the payment period.  The standard entitlement is not applied to the adjustment of job alternation compensation.

Example of adjusted job alternation compensation

In job alternation compensation the income is taken into
account similarly as in earnings-related unemployment allowance, but the standard
entitlement is not applied. One half of the income paid during the adjustment
period is deducted from the full earnings-related unemployment allowance. You get the
amount of your adjusted job alternation compensation by multiplying that amount
by 0,7. Therefore, you can calculate amount of the adjusted job alternation
compensation by using the following formula:

(full earnings-related unemployment allowance – adjustable income *
0,5) *0,7

For example:
Applicants full earnings-related unemployment allowance = 85,00e/day
Adjustable income in the adjustment period = 300e/month, that is 300e/21,5 = 13,95e/day

-> Adjusted job alternation compensation = (85,00e – 0,5 * 13,95e) * 0,7 = 54,62e/day
The full job alternation compensation is 70% of the full
earnings-related unemployment allowance, that is: 85,00e * 0,7 = 59,50e/day
If the income is 300e/monthn, it deducts the full job alternation compensation by 35%, that is in total 300e * 0,35 = 105e/month.
Therefore the difference between full job alternation compensation and adjusted job alternation compensation is: (59,50e – 54,62e) * 21,5 = 105e/month (in round numbers)