Unemployment funds pay their members earnings-related daily allowance according to the conditions set by the law. If there are no other obstacles for payment, receiving earnings-related daily allowance requires that
- you have been a member of an unemployment fund for at least 12 months before your unemployment (about 52 weeks)
- you have registered as a job seeker with the labor authority, you are seeking full-time work and the labor authority has given the Fund a statement stating that there are no obstacles for payment and
- you have fulfilled the employment requirement during your membership with an unemployment fund.
Earnings-related daily allowance is generally paid to people who are unemployed and 18-64 years old. However, during layoffs benefits can be paid until the end of the month during which the person turns 68 years old.
The length and accumulation of the employment requirement
The length of the employment requirement is 12 months beginning 2.9.2024. The employment requirement is a prerequisite for receiving earnings-related daily allowance. The accumulation of the employment requirement is examined based on so-called employment requirement months. The employment requirement is accumulated based on the wage income you have been paid that month:
- A month during which you have been paid at least 930 euros wage income accumulates one employment requirement month
- A month during which you have been paid 465,00-929,99 euros wage income accumulates half an employment requirement month
The 12-month employment requirement does not need to be accumulated from consecutive work. The accumulation of the employment requirement is examined within a 28-month review period. If the employment requirement is accumulated entirely of half months, then 24 months are needed in total to fulfill the employment requirement.
The employment requirement is accumulated from work done in an employment relationship at a job where the pay is based on a collective labor agreement and the statutory social insurance contributions, pension contributions, unemployment insurance contributions, and taxes are deducted. If the industry does not have a collective labor agreement, then the pay for a full-time employee must be at least 1 430 euros a month in 2025 (1 399 euros a month in 2024).
The employment requirement for earnings-related daily allowance can only be accumulated while a member of an unemployment fund.
If you do not fulfill the necessary employment requirement or membership requirement to receive earnings-related daily allowance, you can apply for basic unemployment allowance or labor market subsidy from Kela.
The accumulation of the employment requirement until 1.9.2024
Earlier the employment requirement was accumulated mainly by the hours worked and the length of the employment requirement was 26 calendar weeks. You would accumulate the employment requirement when working in an employment relationship at least 18 hours per calendar week while a member of an unemployment fund.
The employment requirement for teachers was accumulated by the weeks during which the hours worked were at least half the hours of the lowest weekly teaching requirement for full-time teachers in that field. For example, in primary and lower secondary schools and high schools the employment requirement could be accumulated with 8 teaching hours per week. In fields of teaching with no full-time teachers, the required working time was 8 hours per week.
When is the 12-month employment requirement used?
The longer employment requirement is in use beginning 2.9.2024 and once one month or half a month of the new euro-based employment requirement has been accumulated. The euro-based employment requirement applies to wages that have been both earned and paid on 2.9.2024 or later. Any calendar weeks accumulated towards the employment requirement before the new legislation takes effect (until 1.9.2024) will be converted into employment requirement months so that:
- three (3) or four (4) calendar weeks that accumulated the employment requirement will become one month of employment requirement towards the new model and
- one (1) or two (2) calendar weeks that accumulated the employment requirement will become half a month of employment requirement towards the new model.
The review period for the employment requirement
The employment requirement is examined during the last 28 months before your unemployment began. This 28-month so-called review period can be extended for up to 7 years with an acceptable reason stated in the Unemployment Security Act. However, the extension is not possible for time during which you have not been a member of an unemployment fund. Work done while studying can accumulate the employment requirement if you have been a member of an unemployment fund.
Acceptable reasons to be absent from the labor market and extend the 28-month review period are full-time studies, sick leave, hospital care, rehabilitation, mandatory military service, mandatory non-military (civil) service, a sentence of imprisonment, job alternation leave, grant periods and caring for a child 3 years old or younger.
The review period of a person currently active in the labor market can be extended if the work cannot be taken into account in the employment requirement due to restrictions stated in the Unemployment Security Act (such as time during which you have been paid partial sickness allowance or your pay has been reduced due to sickness) or time during which you have participated in an employment-promoting service mandated by the labor authority.
Validity of the employment requirement
Once you have accumulated the employment requirement it is valid for the number of days in your maximum payment period (300/400/500 payment days) or until you fulfill the 12-month employment requirement again. However, if you are absent from the labor market for more than 6 months without an acceptable reason, then you lose the right to earnings-related daily allowance until you fulfill the employment requirement again in its entirety after your absence from the labor market. For instance, job seeking without registering with the labor authority is not considered participation in the labor market according to the Unemployment Security Act. An unemployed person is part of the labor market when they are registered with the labor authority as an unemployed job seeker looking for a full-time job and their job seeker status is active.
You can also lose the employment requirement you have already accumulated by being a full-time entrepreneur for more than 18 months.
The 7-day waiting period
After you have fulfilled the employment requirement and the amount of your earnings-related daily allowance has been calculated, you can be paid earnings-related daily allowance only after the waiting period. The waiting period is equivalent to 7 full weekdays of unemployment, and it must be accumulated within 8 consecutive calendar weeks. Your status as a job seeker must be active with the labor authority so the waiting period can be accumulated.
The waiting period cannot be accumulated during possible suspension periods, the periodisation of financial benefits from your employer or the periodisation of holiday compensation or, if working part-time, when the working time calculated based on the wages paid during your application period is over 80 % of the working time of a full-time employee in your field.
Periodisation of holiday compensation
If you have unused paid annual holiday days when your full-time employment relationship ends, the paid holiday compensation will delay the start of your earnings-related daily allowance payment for as many days as the paid holiday compensation is equivalent to your daily pay. For example, if your holiday compensation is equal to one month’s salary, then the paid holiday compensation will delay the start of your earnings-related benefits by about one month.
Holiday compensation will be subject to periodisation if it is paid from full-time work lasting over 2 weeks. If you are paid both a financial benefit and holiday compensation when your employment relationship ends, then the total of both sums will be subject to periodisation based on the wages from your last employment relationship.
The periodisation of holiday compensation is not possible during the waiting period. This means that the waiting period can begin only after the periodisation of possible holiday compensation.
Holiday compensation from part-time work or full-time work lasting for at most 2 weeks will not be subject to periodisation.
Periodisation of financial benefits paid by your employer
Financial benefits paid by your employer based on an agreement between the employee and employer to end the employment relationship (or other equivalent arrangements) will delay the payment of earnings-related daily allowance. These financial benefits may be called a severance package, dismissal pay or golden parachute. Unemployment benefits cannot be granted and the waiting period cannot be set during the periodisation of financial benefits, which begins from the end of your employment relationship.
The pay used to calculate the length of your periodisation is calculated based on the wages from your last employment relationship. The length of the periodisation depends on how many days wages the financial benefit is equivalent to.
If you are paid both a financial benefit and holiday compensation, then the total of both sums will be subject to periodisation.
Remember to keep your status as an unemployed job seeker active with the labor authority during your periodisation! You are considered part of the labor market when your job seeker status is active. If your status as an unemployed job seeker is inactive for more than 6 months without an acceptable reason for absence specified in the Unemployment Security Act, then you may lose the employment requirement you have already accumulated.