Waiting period, suspension periods, and periodisation

When entitlement to the earnings-related allowance begins, a waiting period is set, for which no benefit is paid. In addition, holiday compensation, a financial benefit associated with the termination of an employment relationship, or a suspension period resulting from voluntarily resignation can postpone the start of your entitlement to the earnings-related allowance.

The periodisation period of a financial benefit and a suspension period can run concurrently. The waiting period, on the other hand, only begins to accumulate after any suspension and/or periodisation period.

Waiting period

The waiting period is seven days long and accumulates for a maximum of five days a week. No earnings-related allowance is paid for the waiting period.

Example: Your first day of unemployment is Monday. Five days of the waiting period elapse during the first week and two days during the following week. Payment of the earnings-related allowance starts the Wednesday of the second week of unemployment.

A waiting period is set whenever the maximum payment period for the earnings-related allowance starts over. When you work part time, the waiting period accumulates more slowly. In these situations, the waiting period must be fulfilled within eight consecutive calendar weeks.

Periodisation of holiday compensations or a financial benefit

If you have unused annual leave when a full-time employment relationship ends, you receive holiday compensation from your employer. Holiday compensation prevents the payment of the earnings-related allowance for a fixed period. Holiday compensation corresponding to a month’s salary prevents the payment of the allowance for a period of approximately one month. This is called the periodisation of holiday compensation.

Example: Your daily salary is €100. You are paid €1,500 in holiday compensation upon the termination of your employment relationship. The holiday compensation is periodised based on your daily salary: €1,500 / €100 = 15. The holiday compensation prevents the payment of the allowance for a period of 15 business days starting from the end of the employment relationship.

A financial benefit related to the termination of employment – the so-called golden handshake – affects entitlement to the earnings-related allowance in the same way as holiday compensation.

Suspension periods

If you have caused the termination of your employment relationship yourself or choose to refuse work, training, or drawing up an employment plan, this could cause a period without allowance imposed by the employment official, i.e., a suspension period. The employment official issues a binding statement on the suspension period to the unemployment fund, which prevents the payment of the earnings-related allowance for that period.

More information on the grounds and durations of suspension periods are available on the employment official’s website.