| Please note! Amendments have been made to the Unemployment Security Act. Due to these amendments, the exempt amount will no longer be used when paying adjusted daily allowance for application periods that begin on or after 1.4.2024.
Because of the termination of the exempt amount, half of the wage income or other adjustable income you are paid during your application period will decrease the amount of earnings-related daily allowance you will be paid. |
When receiving adjusted earnings-related daily allowance, the income you earn affects the amount of your daily allowance only if the exempt amount is exceeded. If the exempt amount is not exceeded, your daily allowance will be paid in full. When paying adjusted daily allowance, 50% of the income you have been paid during the application period and that exceeds the exempt amount will be subtracted from the full amount of your daily allowance. In addition to income from work, the exempt amount is also used for income from entrepreneurship. However, the exempt amount is not used when paying job alternation compensation. With job alternation compensation, half of the income earned during the application period will be subtracted from the full amount of job alternation compensation.
The adjustment period is monthly or every 4 calendar weeks (Mon-Sun). Which period is used is determined by your pay cycle at work or your application period.
- If your application period is monthly, the exempt amount is 300 euros
- If your application period is every 4 calendar weeks, the exempt amount is 279 euros.
You must inform the Fund of any hours worked and you must send pay slips, pay certificates, or other proof of payment for any income you receive even if the income is less than the exempt amount.
| An example of a monthly adjustment period |
| Your full daily allowance is 45 e/day. You have worked occasionally, and you will be paid 500 e during this application period for the work you have done. Half of the income that exceeds the 300 euro exempt amount so (500 e – 300 e) / 2 = 100 e will reduce your daily allowance when calculating the amount of your adjusted daily allowance. 100 e is divided by the average number of weekdays in a month (21,5) to get the amount your daily allowance will be reduced (4,65 e/day). Your daily allowance will be 45 e – 4,65e = 40,35 e/day for every weekday of the month in question. |
| An example of an adjustment period every 4 calendar weeks |
| Your full daily allowance is 45 e/day. You have worked occasionally, and you will be paid 500 e during this application period for the work you have done. Half of the income that exceeds the 279 euro exempt amount so (500 e – 279 e) / 2 = 110,50 e will reduce your daily allowance when calculating the amount of your adjusted daily allowance. 110,50 e is divided by the number of weekdays (20) in the adjustment period to get the amount your daily allowance will be reduced (5,53 e/day). Your daily allowance will be 45 e – 5,53e = 39,47 e/day for every weekday of the application period. |
The adjusted daily allowance for the application period and the income paid during the application period together can be at most as much as the income used to calculate your daily allowance (the so-called 100 % rule). If the sum is more than the income your daily allowance is based on, no daily allowance can be paid that application period. The absolute maximum amount of adjusted earnings-related daily allowance can be calculated by subtracting the income paid during the application period from the income your daily allowance is based on. The maximum amount of adjusted daily allowance includes the possible so-called child increase. If the income paid during your application period is less than the exempt amount, it will not be acknowledged when calculating the maximum amount. The maximum amount is checked every application period. In addition to the 100 % rule described above, no daily allowance will be paid if the amount to be paid is less than 50 % of the amount of basic unemployment allowance.
Adjusted daily allowance is paid for every day (5 days/calendar week) of the application period except for days when there is no right to daily allowance. If your right to daily allowance temporarily ends because you have ended and then reactivated your status as a job seeker with the TE Office, income earned while not a job seeker will also be acknowledged when calculating the amount of your adjusted daily allowance.
Adjusted daily allowance generally uses up the 300/400/500 day maximum payment period slower than otherwise. This is because adjusted daily allowance days are converted into full days when calculating how many days of the maximum payment period they have used up. However, if adjusted daily allowance includes an increased earnings-related component, then every day you are paid adjusted daily allowance will use up one day of the maximum payment period, regardless of what the amount of the paid adjusted daily allowance is.
You can use the allowance calculator to experiment with what effect different amounts of income have on the amount of adjusted daily allowance. Note that the results of the allowance calculator are only an estimate. The precise amount of daily allowance will be determined by the Fund’s decision.