Work|In September, the conditions of earnings-related unemployment insurance will become stricter. The most important change concerns the work history required to pay earnings-related allowance.
Unemployment insurance will change in several ways at the beginning of September, when the conditions of earnings-related unemployment insurance will become stricter. The most important change is that the working time required to pay the daily allowance will be longer.
Today, daily earnings allowance is paid based on half a year’s work, but in the future a year’s work is required.
In addition, the amount of the earnings-related allowance will decrease in the future due to the change in the law regarding the tiering. It means that the level of daily allowance will decrease gradually.
Last year, the gross daily allowance was 1,690 euros per month. As a result of the gradation, this average daily allowance decreases so that after a payment period of approximately two months it is 1,350 euros and after a payment period of approximately eight months it is 1,270 euros.
As a rule the changes affect those who become unemployed in or after September. The extension of the working requirement and the merit-related scaling come into effect at the same time.
The gradation affects approximately two out of three recipients of earnings-related allowance. In most years, this applies to approximately 150,000–200,000 people.
“Unemployment security conditions are being tightened for the third time this year. This is the biggest change so far,” says the Executive Director of the Association of Unemployment Funds Aki Villman.
“The impact of the gradation on the level of daily allowance is very significant, and it will affect the vast majority of daily allowance recipients.”
The third the unemployed are employed so quickly that the phasing does not have time to affect the benefit.
The extension of the working condition, on the other hand, primarily affects young people and the long-term unemployed. The situation also affects the position of the elderly long-term unemployed.
As a result of the decisions, the exemptions that allow the right to earn daily allowance at a certain age to be subsidized are waived. This means that the municipalities’ obligation to find jobs for the elderly unemployed will be removed and the accumulation of the right to daily allowance in wage support work will be limited to exceptional situations.
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