Effect of social benefits

If you claim other social benefits while unemployed, they may affect your earnings-related allowance. Some benefits prevent the payment of earnings-related allowance, some reduce the full amount of the allowance, and some have no effect on the unemployment fund benefits.

Benefits that prevent the payment of earnings-related allowance include several pensions, full or partial sickness allowance, maternal, paternal or parental allowance, and rehabilitation allowance.

Benefits that reduce the amount of earnings-related allowance include partial disability pension and the early retirement pensions paid under the State Employees’ Pensions Act (valtion eläkelaki, VaEL 1295/2006).

Child home care allowance for children under three years of age reduces the allowance. The reduction is based on the benefits claimed by both partners: if you claim earnings-related allowance, your partner’s child home care allowance is deducted from your allowance unless your partner cares for your child him/herself and is therefore unable to work.

The following benefits reduce earnings-related allowance:

  • Partial disability pension claimed under one of the acts on earnings-related pensions
  • Part-time pension between the end of your part-time employment and the end of your part-time pension
  • Old-age pension if you are under 65 years of age and your pension is not based on full years of employment. (Only applies to pensions granted before 2005. If you have been granted old-age pension after the pension amendments in 2005, you automatically cannot claim unemployment benefits, even if your pension is not based on full years of employment.)
  • Pensions granted under section 8(1) of the State Pensions Act (valtion eläkelaki 1295/2006), which are payable for occupations with a compulsory retirement age lower than the general retirement age
  • Supplementary pension provided by the employer, exceeding the minimum requirements under the Employees’ Pension Act 395/2006
  • Child home care allowance (care allowance / care supplement). Benefits claimed by both partners affect the amount of child home care allowance: if one partner works and also claims child home care allowance, the allowance is deducted from the unemployed partner’s earnings-related unemployment allowance. If both partners are unemployed, the allowance is deducted from the partner who claims home care allowance. Partner’s child home care allowance is not deducted from the unemployed person’s unemployment benefit if the partner cares for the child personally and is therefore not available for work. Municipality-specific supplements are not deducted
  • Farmers’ early retirement aid
  • Benefits under the Motor Third Party Insurance Act (liikennevakuutuslaki 279/1959), except for the compensation of special costs and survivors’ pensions
  • Allowances under the Military Injuries Act (sotilasvammalaki 404/1948)
  • Allowances and industrial injury pensions under the Employment Accidents Insurance Act (tapaturmavakuutuslaki 608/1948)
  • Disability benefits received from another state
  • Indemnity for loss of earnings under the Act on compensation for crime damage 935/1973
  • Compensation for loss of earnings (pension) under the Patient Injuries Act (potilasvahinkolaki 585/1986)

This list is not exhaustive. Calculations for benefit deductions are based on a month of 21.5 days. Each day of reduced payment reduces the maximum payment period by one day.

The following benefits do not reduce earnings-related allowance:

  • Survivors’ pensions
  • Housing allowance
  • Child benefit
  • Social assistance
  • Care allowance for pensioners under the Act on Disability Benefits
  • Disability allowance
  • Conscript’s allowance
  • Compensation for functional limitation under the Workers’ Compensation Act
  • Life annuity and additional life annuity under the Military Injuries Act
  • Compensation of costs under the Workers’ Compensation Act and the Military Injuries Act
  • Partial early old-age pension
  • Maternity grant
  • Adoption grant

The following do not reduce earnings-related allowance either:

  • Compensation for informal care paid to the carer
  • Compensation for family care

If you are unwell

You can claim sickness allowance from Kela.

You cannot claim sickness allowance and earnings-related unemployment allowance at the same time. However, earnings-related allowance is payable during the nine-day personal liability period (Monday to Saturday) before you start receiving sickness allowance.

If your sick leave continues after your entitlement to sickness allowance ends, you can claim earnings-related allowance from your unemployment fund if:

  • you have registered with a TE Office;
  • your claim for disability pension is pending or has been rejected; and
  • you are unable to work and your employer cannot offer you work suitable to your ability.

Retroactive benefit payments

If you are paid benefits retroactively (back payments) for a period when you received earnings-related allowance, the earnings-related allowance will be recovered directly from the benefit payment.

Sivu päivitetty viimeksi 04.04.2018

Yleiset kirjanmerkit