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Unemployment Benefit Glossary

Unemployment benefits involve many different terms and concepts that can be difficult to understand. For this reason, we have compiled a glossary where you can check the meanings of various terms.

The terms are arranged in alphabetical order. You can easily navigate to the desired letter using the content list on the right-hand side.

A

Absence from labour market

Absence from labour market refers to a situation where a person has been absent from the labor market for more than six months without a valid reason. In such cases, the right to earnings-related unemployment allowance may only be re-established once the person fully meets the employment condition again after the interruption ends.

Acceptable reasons for being absent from the labour market include, for example,

  • full-time studies
  • working with a grant
  • sick leave
  • parental leave or care of a child maximum of 3 years old
  • military service or civilian cervice
Adjusted daily allowance

Adjusted unemployment allowance can be paid if a person is working part-time, or if they are engaged in full-time work for no more than two weeks, or if they have income from part-time business activity or self-employment. In adjusted daily allowance, the income from work or business activity reduces the amount of the allowance. For more information: Adjusted and reduced daily allowance.

Adjustment period

The adjustment period refers to the time period during which events affect the earnings-related unemployment allowance and its amount. The length of the adjustment period is always four calendar weeks or one month. This is also the case when the allowance is applied for a shorter period, for example, when becoming unemployed. In such cases, the adjustment period can also extend to the period before unemployment. For example, if unemployment starts on December 1, 2024, and the first application is for the period from December 1, 2024, to December 15, 2024, the adjustment period may be set from November 16, 2024, to December 15, 2024. However, the adjustment period for each applicant is determined during the processing of the application.

C

Change security allowance

Change security allowance is a benefit that can be paid to an employee who has been dismissed for production-related or financial reasons. To qualify for the change security allowance, the dismissed employee must meet the following conditions: they must have reached the age of 55 by the date of dismissal, their employment relationship must have lasted at least 5 years, and they must register as an unemployed jobseeker with the employment officials (Job Market Finland E-services) within 60 days of the dismissal date (note: this is different from the end date of the employment relationship). For more information: Change Security

E

Earnings-related daily allowance

Earnings-related daily allowance is a benefit paid by the unemployment fund, which can be provided to a member of the unemployment fund in cases of unemployment or layoff. The unemployment allowance consists of a basic component equal to the amount of the basic allowance and an earnings-related component, which is determined based on the salary.

Employment condition

One of the conditions for the right to earnings-related unemployment allowance is that the member of the unemployment fund has fulfilled the employment condition during their membership period. You must have accumulated the required amount of work history for the right to the allowance to be established.

For more information on the employment condition: Right to earnings-related daily allowance.

Employment promotion measures

Employment promotion measures are services provided by the employment officials aimed at supporting employment and professional training. Earnings-related unemployment allowance can be paid for the duration of employment promotion measures if the right to the allowance otherwise arises. Employment promotion measures include, among others, labour market training, work trials, job search training, career coaching, and independent studies supported by unemployment benefit.

For more information: Employment promotion measures.

Extended allowance

Older job seekers may be entitled to extended allowance of unemployment benefits, allowing unemployment benefits to be paid beyond the normal maximum period until the end of the calendar month in which the person turns 65. If the person retires before turning 65, the right to benefits ends when the pension begins. The right to extended allowance is gradually being phased out. There is no longer a right to additional days for individuals born in 1965 or later.

For more information: Unemployment security for ageing people.

F

Full-time work

In full-time work, the working hours exceed 80% of the maximum working hours for a full-time employee in the field. If a full-time employment relationship lasts longer than 14 days, there is no right to unemployment benefits for that period.

G

Grading of the daily allowance

If earnings-related unemployment allowance has been paid based on the employment condition for 12 calendar months, the recipient of the allowance has entered into the so-called gradation system. Under gradation, the level of the allowance decreases as unemployment progresses as follows:

  • To 80% after 40 benefit days.
  • To 75% after 170 benefit days.

For more information: Grading of earnings-related daily allowance

L

Layoff notice

A layoff notice is a written notice from the employer regarding a layoff. It must specify the reason for the layoff, its start date, and its duration or estimated duration. If you apply for earnings-related unemployment allowance during the layoff period, the fund will require a copy or image of the layoff notice as an attachment to your application.

M

Maximum allowance period

The maximum allowance period refers to the longest duration for which the daily allowance can be paid. The maximum duration is 300, 400, or 500 days, depending on work history and age.

Maximum working time

The maximum working time refers to the amount of work a full-time employee in the field performs per week. For example, the maximum working time for a classroom teacher are typically 24 hours per week, while for an early childhood education teacher, it is 38.25 hours per week.

Membership condition

The membership condition refers to the length of time a person must have been a member of the unemployment fund in order to be eligible for unemployment benefits.

The membership condition is:

  • 26 weeks if the last week of work considered for unemployment benefits ends on 1 September 2024 or earlier.
  • 12 months if you have worked on or after 2 September 2024 and earned at least 465 euros per month from that work.
Mobility allowance

Mobility allowance is a benefit paid by the fund, which may become available if the workplace is far from home or if you have to relocate for work. The mobility allowance is the amount of the basic daily allowance. For more information: Mobility allowance.

O

Openetti

Openetti is the electronic system of the Unemployment Fund for Education and Science, where you can, for example, submit applications and attachments, view decisions and payment details, communicate with us via messages, and update your contact information. You log in to Openetti using Suomi.fi authentication.

P

Part-time business activity

The employment officials examine whether business activity is considered part-time or full-time and provide a statement on the matter to the unemployment fund. If the business activity is deemed part-time, it does not prevent the payment of earnings-related unemployment allowance. In this case, the income from part-time business activity is adjusted in the unemployment allowance. For more information: Self-employment.

Part-time work

Part-time work is considered work where the working hours are no more than 80% of the maximum working hours for a full-time employee in the same field. For example, if the maximum working hours for a full-time employee are 24 hours per week, the work is considered part-time even with a 19.2-hour weekly work schedule.

Payment-based adjustment

In payment-based adjustment, for example, income from part-time work typically affects the amount of earnings-related unemployment allowance during the adjustment period in which the salary is paid. For instance, if the adjustment period is December 1, 2024 – December 31, 2024, the part-time wages paid during that time will influence the allowance amount. In payment-based adjustment, the timing of the work itself is not decisive; instead, it is the date when the wages are paid.

Periodisation of holiday compensation

If you receive holiday compensation for unused vacation days upon the termination of full-time employment lasting more than two weeks, the paid holiday compensation will be periodised, which will prevent the payment of unemployment benefits during the periodised period. In practice, this means that the right to unemployment benefits will start at a later date. For more information: Periodisation of holiday compensation.

Post-protection period

Unemployment benefits can be paid based on post-protection, for example, if a business started by the individual ends within 18 months and the entrepreneur has not yet accumulated the required work history. In this case, the daily allowance is based on the previously accumulated employee’s right to unemployment benefits. If the 18-month post-protection period is exceeded, there is no right to unemployment benefits until a new work employment condition for employees has been met.

Would you like clarification on any other terms? Please send your request to us via Openetti!

R

Review period

The review period is 28 months, and the employment condition must be met within the review period. The review period usually starts from the time you registered as an unemployed jobseeker with the employment authorities. The review period can be extended for up to 7 years if you have a valid reason for being away from the labor market (e.g., full-time studies, parental leave, care of a child under 3 years old, sick leave, scholarship period).

S

Salary distribution

If a person is paid salary for an earning period longer than a month during the adjustment period, and if the procedure deviates from the usual pay period, the earned income and the working hours on which the salary is based are divided across the payment month and the same number of following months as the number of months for which income was paid.

Situations comparable to layoffs

Situation comparable to a layoff refers to times within an employment relationship during which the employer has no work to offer, and the employee is not paid. These periods must be agreed upon when drafting the employment contract and explicitly stated in the contract. Periods comparable to layoffs are relatively common, for example, among teachers at adult education centers. For more information: Layoff and situations comparable to a layoff.

Statement

The labor policy statement provided by the employment authority to the unemployment fund. In order for the fund to pay the daily allowance, it requires the statement sent by the employment authority regarding your eligibility for unemployment benefits.

Suspension period

A suspension period is a non-compensated period set by the employment authority during which, as a general rule, no daily allowance is paid. The length of the suspension period can be 7, 14, 30, or 45 calendar days. A suspension period may be imposed, for example, if you resign from a job without a labor policy-approved reason. For more information about the suspension period, you can inquire with the employment authority in your municipality or employment region.

W

Waiting period

The waiting period is applied when you become an applicant for earnings-related unemployment allowance for the first time or when you meet the employment condition again. The waiting period corresponds to seven weekdays of unemployment, during which no allowance is generally paid. The unemployment fund determines the waiting period (cf. a sanction period, which is decided by the Employment Officials). For more information: Waiting Period.