Obstacles to granting earnings-related daily allowance

There may be various obstacles to granting earnings-related daily allowance. Below you can find more information about what benefits or situations may prevent the payment of earnings-related daily allowance.   
Earnings-related daily allowance cannot be paid if (the list is not conclusive)

  • you receive holiday pay on the basis of earned income from full-time work  
  • you are not registered as a jobseeker with the TE Office
  • you receive maternity, paternity or parental allowance
  • you receive old-age pension or early old-age pension (please note that this is not the same as partial early old-age pension) under the National Pensions Act or employment pension legislation
  • you receive old-age pension based on full years of service
  • you are completing military service or civilian service
  • you are a full-time student (does not apply to short-term studies)
  • you are under 17 years of age
  • you have reached the age of 65. As an exception, earnings-related daily allowance may be paid after you have reached the age of 65 if you have been laid off or have been prevented from working due to weather conditions or collective action. The payment of daily allowance ends when you reach the age of 68 at the latest.

Right to earnings-related daily allowance may be lost due to absence from the labour market

You must be on the labour market to retain your right to earnings-related daily allowance. Being on the labour market means that you are in employment that meets the working condition, you are self-employed, or you are registered as an unemployed jobseeker with the TE Office. If you are outside the labour market for more than six months you may lose your right to earnings-related daily allowance, unless you have an acceptable reason for your absence, as referred to in the Unemployment Security Act. Your right to earnings-related daily allowance will not be restored until you have worked at least 26 weeks after your absence and met the working condition during this period. Acceptable reasons for being outside the labour market include, but are not limited to, taking care of a child under 3 years of age at home, full-time studies, military service and periods of sick leave or rehabilitation. Please note that a period for which you receive severance pay / a support package is not an acceptable reason for being outside the labour market and you must register as a jobseeker with the TE Office when your employment ends, even if you receive severance pay or a support package.

Employer’s obligation to pay wages and extra payments prevent the payment of earnings-related daily allowance

The unemployment fund will not pay earnings-related daily allowance for a period during which the employer has an obligation to pay wages. If you would be entitled to wages or compensation from your employer during your notice period, but you have given up this right either completely or you have agreed, for example, on a notice period that is shorter than the notice period required by law or agreement, you will not be paid earnings-related allowance for the period for which you would have been entitled to notice period wages or compensation for the termination of employment.   
The payment of earnings-related daily allowance is also prevented if your employer makes a payment to you (such as severance pay, support package or motivation bonus) which can be considered to be made due to the termination of your employment. In such case, the unemployment fund divides the payment into periods on the basis of your income from your latest employment relationship. It does not matter what name the payment was made under or when the payment was made. For example, your employer may have made payments for several months before the end of your employment. If a payment is interpreted as being additional compensation, the unemployment fund will add monthly payments together and divide the whole amount into periods starting from the end of employment. The deferral period division is done by comparing the amount of the payments made by the employer to daily pay, which is calculated using the same principle used to calculate daily pay from the earned income on which the earnings-related daily allowance is based. However, a deduction of 4.29 percent is not made to daily pay calculated for the purpose of determining a deferral period, unlike when calculating the earnings-related daily allowance.

You must keep your job search active during the deferral period

You must keep your job search active during the deferral period because you must be available on the labour market to retain your right to earnings-related daily allowance after the deferral period.
If you work at least 26 weeks during your deferral period and meet the working condition again, the rate of earnings-related daily allowance is calculated based on this work when you start receiving earnings-related daily allowance after the deferral period. 

Mandatory waiting periods imposed by the TE Office

The TE Office may impose mandatory waiting periods of varying lengths. Mandatory waiting periods are periods for which earnings-related daily allowance cannot be paid if you have influenced your own unemployment in some way.
A mandatory waiting period of 90 days may be imposed if you have resigned without an acceptable reason. If you cause the termination of work by your own improper actions, the mandatory waiting period is 60 days. If the employment would have lasted five days or less, the mandatory waiting period is 30 days. If you refuse work that would have lasted more than five days or appropriate training without an acceptable reason the mandatory waiting period is 60 days. 
If you refuse to prepare or update your employment plan or equivalent plan, the mandatory waiting period is 30 days. The mandatory waiting period ends on the day when the plan has been prepared or updated.
The TE Office will impose a mandatory waiting period for a minimum of 15 days if you do not arrive for an interview scheduled for preparing or updating your plan or the TE Office is unable to contact you for preparing or updating the plan. The mandatory waiting period is always a minimum of 15 days, and it ends on the day when your plan is prepared or updated.
Repeated refusal of work or training may also lead to suspension of earnings-related daily allowance. The payment of earnings-related daily allowance can be restarted after you have been working or in training for three months.
If you participate in employment promoting services (e.g. labour market training, independent studies, a trial, job search training) earnings-related daily allowance is paid for the duration of the service even if the TE Office has imposed a mandatory waiting period for the same period.