How social benefits affect earnings-related daily allowance

Some social benefits prevent the payment of earnings-related daily allowance, others reduce how much allowance can be paid and some social benefits have no effect on earnings-related daily allowance. 

Social benefits that prevent the payment of earnings-related daily allowance are

  • sickness allowance and partial sickness allowance according to the Health Insurance Act,
  • pregnancy allowance, special pregnancy allowance, parental allowance and special care allowance, 
  • rehabilitation allowance,
  • rehabilitation subsidy or compensation for loss of income for complete incapacity to work that is based on accident insurance, motor liability insurance, or the Military Injuries Act,
  • old-age pension.

Social benefits that reduce the amount of earnings-related daily allowance are.

  • partial disability pension,
  • part-time pension, 
  • child home care allowance when paid to your family,
  • partial care allowance or flexible care allowance when paid to the applicant.

Child home care allowance is generally subtracted from the applicant’s earnings-related daily allowance regardless of which parent it has been paid to. If the child home care allowance has been paid to the applicant’s spouse, the spouse cares for the child full-time and the spouse is not entitled to unemployment benefits for this reason, then the child home care allowance will not be subtracted from the applicant’s daily allowance. If the spouse being paid the child home care allowance is also unemployed, then the child home care allowance reduces only the amount of their own daily allowance.

If you receive a social benefit that reduces the amount of your earnings-related daily allowance, the social benefit will be subtracted from your allowance in full. The exempt amouth used for calculating adjusted daily allowance is not used when calculating the effects of social benefits on earnings-related daily allowance.

Social benefits that do not affect earnings-related daily allowance are.

  • child benefit,
  • housing allowance,
  • disability allowance,
  • social assistance,
  • municipal informal care allowance or municipal family care allowance,
  • partial early old-age pension.

If you have applied for or are receiving social benefits in addition to earnings-related daily allowance, remember to report this on your application. Also, report any changes regarding the payment of these social benefits (such as payment ending or changes in the paid amount).