Amount of allowance

The earnings-related allowance is calculated on the basis of your established pay for a period immediately before you became unemployed. The minimum length of this period is set in accordance with the condition regarding previous employment. When your allowance is calculated, your pay is counted for the calendar weeks that comply with the condition regarding previous employment.

Holiday pay and holiday compensation are deducted from you pay. Additional deductions include a sum corresponding to your earnings-based pension, unemployment insurance and sickness allowance contributions. The deduction under the condition regarding previous employment in 2018 is 4.48 per cent.

Earnings-related allowance comprises the basic component, the earnings-related component and the child increases

  • The amount of the basic component equals the basic unemployment allowance, which is set each year on the basis of the national pension index. In 2018, the basic unemployment allowance is 32.40 euros.
  • The earnings-related component is 45 per cent of the difference between your daily pay and the basic component. If your monthly pay is higher than the income limit (3,078.00 euros in 2018), the earnings-related component is 20 per cent of the exceeding amount.
  • You can claim a child increase for children who are under 18 years of age and in your care. In 2018, the child increases are 5.23 euros for one child, 7.68 euros for two children, and 9.90 euros for three or more children.

The full earnings-related allowance with child increases can be no more than 90 per cent of the daily pay on which the allowance is based. In any case, earnings-related allowance cannot be lower than the basic unemployment benefit including the child increases.

Earnings-related allowance is taxable income and paid for five days per week.

Examples of calculating the earnings-related allowance

Esimerkkilaskut 2018
MONTHLY PAY2,000.00 €
reduced by 4.48 %1,910.40 €
daily pay88.86 €
earnings-related allowance 32.40 + (0,45x [88.86 – 32.40])57.81 € / day
earnings-related allowance per month x 21,5 =1,242.92 € / month
MONTHLY PAY (income limit)3,222.37 €
reduced by 4.48 %3,078.00 €
daily pay143.16 €
earnings-related allowance 32.40 + [0,45x (143.14 – 32.40)]82.24 € / day
earnings-related allowance per month x 21,5 =1,768.16 € / month
MONTHLY PAY3,700.00 €
reduced by 4.48 %3,534.24 €
daily pay164.38 €
earnings-related allowance 82.24 + [0,20 x (164.38 – 143.16)]86.49 € / day
earnings-related allowance per month x 21,5 =1,859.54 € / month
Effect of activity requirement on the amount of the earnings-related allowance

An unemployed job seeker must fulfil the activity requirement during each review period comprising 65 payment days in order to be entitled to the full earnings-related allowance for the next 65 payment days. Payment days refer to days for which full, adjusted or reduced unemployment allowance is paid.

Your first review period will begin when you start receiving earnings-related allowance payments.

If you do not fulfil the activity requirement, your unemployment benefit will be cut by 4.65 per cent for the next 65 payment days, that is, the next three months. The cut corresponds to one day without benefits per month.

Seasonal work and working hours bank

If you undertake seasonal work, the income taken into consideration is the income for the 12 months immediately before your unemployment.

Paid leave on the basis of your time saved in a working hours bank is taken into consideration when determining the allowance, while money deposited into or withdrawn from the working hours bank is not.

Sivu päivitetty viimeksi 12.01.2018

Yleiset kirjanmerkit