Entitlement to earnings-related daily allowance during the grant period

The effect of the received grant on your unemployment security is determined case by case. Therefore, you must always inform TE office and the Fund of the grant you have received. It is possible that you might be fully self-employed during this grant term. Your right to earnings-related allowance in this situation depends heavily on the decision of employment authorities at the TE Office.

If your grant term starts during unemployment, TE office does not assess whether your grant-funded work is full-time or part time during the first four months. Nevertheless, you must always inform TE office immediately of the received grant. The Fund must receive a labour policy statement from TE office in which we can determine that TE office has been informed of the grant term before processing your application.

If, according to the employment authorities, your grant-funded work is regarded as standing in the way of you possibly being fully employed, you do not fill the prerequisites for earnings-related allowance. Earnings-related allowance is remunerative in a way that you must be available in the labour market and ready to receive a full-time position. If TE Office regards your grant-funded work as part-time, you might receive earnings-related allowance even during your grant term, if you fill the other requirements.

For more information about this labour policy assessment done by TE Office, please contact your local unemployment authorities.

Effect of the grant on the amount of earnings-related daily allowance

If you are eligible for earnings-related allowance during your grant term, the grant might affect your allowance amount. The effect on your earnings-related allowance depends on whether your grant is taxable or non-taxable. Taxable grant is so-called adjusted income, which will partly decrease the amount of your full allowance, whereas non-taxable grant will not affect the amount of your allowance.

If you have received grant, please send in a copy of the received grant decision to the Fund. In addition, inform the Fund of the time periods during which you will be using your received grant amount (grant terms). Working during a grant term is mainly self-employment, which does not accumulate your employment condition, therefore you do not need to mark these working hours in the application form. Please inform the Fund also if you later receive more grant(s) during the same year, even if you would not be applying for allowance during that time.