How do I apply for the adjusted daily allowance?
Remember to notify the TE Office of changes in your job search, such as starting a part-time job or entrepreneurial activities. You can apply for the adjusted daily allowance the same way as you would apply for the earnings-related allowance as it is. The period applied for depends on the salary payment period of the job and can be either four calendar weeks or one calendar month. If you have already previously applied for daily allowance, you can continue to apply in the same schedule. We will change the application period, if necessary.
Fill in the application
- the days worked with working hours. If you have worked for more than one employer, itemise the work on a day-specific basis and report the dates of pay days
- information on received salary and dates of pay days during the application period
- hours from entrepreneurial activities do not need to be filled in the application.
Attach to your application
- a pay certificate or payslip for the application period, if you have received any income as salary or from entrepreneurship during the application period. We cannot process the application without payroll data. Payroll data must also be provided for income below the standard entitlement of EUR 300*.
- an employment contract when you have started an employment relationship.
Adjusted daily allowance is paid for every weekday of the adjustment period for which you are entitled to the benefit. Income earned during unemployment will affect the daily allowance, when the salary is in reality paid to the applicant of daily allowance. This is called as payment-based adjusted earnings-related allowance. The legislative amendment took effect on 1 of April 2019.
Remember to pay the membership fee also for part-time work or full-time work lasting a maximum of two weeks. The membership fee must still be paid according to the period, when the work was done. For example, membership fee from April must be paid from work done in April.
Who can claim adjusted daily allowance?
Adjusted daily allowance can be paid out if you have received income and if:
- you are in part-time employment at the employer’s initiative;
- your daily working hours have been shortened due to a temporary lay-off;
- you have accepted a full-time job lasting a maximum of two weeks;
- you are employed as a part-time entrepreneur or self-employed person; or
- you are employed as a full-time entrepreneur for a maximum of two weeks.
Working hours affect adjusted daily allowance
You can claim adjusted daily allowance if the working hours do not exceed 80% of the maximum hours in the sector:
- in part-time work or full-time work lasting a maximum of two weeks, working hours are reviewed in adjustment periods of four calendar weeks or one calendar month depending on the salary payment schedule
- for those employed on shortened working days, working hours are reviewed by calendar weeks
- working hours are not reviewed for entrepreneurial activities, and hours do not need to be reported
Working hours affect the payment of your allowance according to the pay day of your salary.
You work part-time in July. The salary is paid to you on 15.8.2019. Working hours of a full-time employee is 40 hours per week. 80 per cent of the working hours of a full-time employee is 137,60 hours within a calendar month. You have worked 140 hours in July, which means that you have exceeded the working hours limit. The application for 1. – 31.8.2019 will be rejected due to the hours worked in July.
For a shortened working week, full daily allowance is paid for unemployed days, not adjusted daily allowance. If the shortened working week meets one the above grounds for adjustment and income exceeds the standard entitlement during the application period (EUR 300 for a month and EUR 279 for a 4-week application period)*, adjusted daily allowance is paid out so that all income from work and other income, such as income from part-time entrepreneurial activities, of that week is taken into account in the adjustment. The working hours are reviewed by calendar weeks. Working hours are taken into account according to the pay day of your salary.
Amount of adjusted daily allowance
With adjusted daily allowance, the allowance amount is affected not only by the hours worked but also the income you earn. However, the earnings-related allowance includes a standard entitlement, and income that falls below it does not affect the amount of daily allowance paid out. The standard entitlement is EUR 300 for a month and EUR 279 for a 4-week application period*. If your income exceeds the standard entitlement during the application period, 50% of the income earned during the adjustment period is deducted from the full daily allowance.
Your full earnings-related allowance is EUR 60 per day. You start a part-time job for which you are paid EUR 400 per month. As the salary is paid monthly, the application period is a calendar month. Half of the salary exceeding the standard entitlement affects the amount of earnings-related allowance (400 – 300) x 0.5 = 50. This amount of EUR 50 is divided by 21.5, which is the computational number of working days per month. This provides the amount deducted from the daily allowance, EUR 2.33 per day. Therefore, the adjusted daily allowance is 60 – 2.33 = 57.67 euros per day and it is paid for every weekday of the adjustment period
Maximum amount of adjusted daily allowance
Your pay from work and adjusted daily allowance in total may not exceed the wages on which the daily allowance is based when the adjusted income exceeds the standard entitlement during the application period. If the adjusted income is less than the standard entitlement during the application period, the income earned does not affect the daily allowance. If the income in total would exceed the wages on which the daily allowance is based, daily allowance will be paid out so that the income in total equals the wages on which the daily allowance is based.
You can use the daily allowance calculator to calculate an estimate of the amount of adjusted daily allowance.
The amount of full daily allowance and adjusted daily allowance affects the accrual of the maximum period when adjusted daily allowance is paid out. One day is counted towards the maximum period once an amount of adjusted daily allowance equivalent to the full allowance amount has been paid out.
If your full allowance is EUR 40 per day and the adjusted daily allowance is EUR 33.70 per day, the number of days counted towards the maximum period for an application of four calendar weeks is (20 days x EUR 33.70): 40.00 = 16.85, or 17 days. When calculating the maximum period, the amount paid out as adjusted daily allowance is converted into full daily allowance days
* Due to temporary changes to law, standard entitlement is 500 euros per month and 465 euros per 4-weeks period during 1 of July and 31 of December 2020. Read more about it here.