What is the amount of my daily allowance?

What income is taken into account in determining the daily allowance?

An earnings-related allowance is calculated from your earned income of at least 26 calendar weeks* preceding unemployment. The weeks used to determine the daily allowance must fulfil the employment condition.

Income taken into account in the determination includes

• monthly or hourly pay;
• holiday pay for the annual leave period, pay during sickness and salary for the notice period;
• wage supplements, such as overtime compensation, evening work bonus, shift work bonus, contract bonus, midweek holiday compensation;
• performance-based pay, such as various incentives and bonuses;
• taxable fringe benefits; and
• pay received under pay security.

The determination does not take into account

• holiday bonus and holiday compensation;
• tax-free fringe benefit;
• financial benefit paid by the employer that is associated with the termination of employment relationship, or a so-called golden handshake;
• compensation equivalent to the salary for the notice period and indemnity;
• savings in a working hours bank or monetary compensation withdrawn from a working hours bank;
• pay for suspension periods; or
• income from options and dividends.

The daily pay used to determine the daily allowance is obtained by dividing the wages of the 26 employment weeks* by the number of working days included in this period (5 days per week, i.e. 130 days). Days for which no wages have been paid due to an acceptable absence, such as unpaid sick leave, are not counted as working days.

If you have been in seasonal employment, your earnings-related allowance can be determined based on the earnings of the 12 months preceding unemployment. This requires that the amount of work done and thus the earnings have been considerably higher than usual.

A deduction equivalent to the employment pension, unemployment insurance and health insurance daily allowance contributions (TyEL deduction) is made from your monthly pay used to determine the daily allowance. This is 4.24% in 2019 and 4.14% in 2020.

What does the amount of daily allowance consist of?

Daily allowance consists of the basic component and earnings-related component.

  • The basic component equals the basic unemployment allowance, which is EUR 33.66 per day in 2020.
  • The earnings-related component is 45% of the difference between daily pay and the basic component. If the pay is more than EUR 3,197.70 per month, the earnings-related component is 20% for the exceeding amount.

A child increase is also paid, amounting to

  • EUR 5.28 for one child under the age of 18 in your care;
  • EUR 7.76 in total for two children; and
  • EUR 10.00 in total for three or more children per day.

The child increase is paid for a maximum of three children.

You can use the daily allowance calculator to calculate an estimate of your incoming daily allowance. The exact amount of daily allowance will be defined in the decision issued by the unemployment fund.

When is increased allowance paid?

If you participate in an employment promotion measure, increased earnings-related allowance can be paid for a maximum of 200 days. Claiming an increased earnings-related component requires that the measure has been agreed upon in the plan for employment with the TE Office.

The increased earnings-related component amounts to 55% of the difference between the daily wage and the basic component. If the pay exceeds EUR 3,197.70 per month, the increased earnings-related component is 25% for the exceeding amount.

Recalculation of daily allowance

When you have been in employment that fulfils the employment condition again for 26 calendar weeks during the review period of 28 months, and more than one year has elapsed since the commencement of the previous maximum period, the level of daily allowance is recalculated.

Your earnings-related allowance will not be recalculated when the employment condition is fulfilled again if the new maximum period would begin within one year of the commencement of the previous maximum period and the allowance was determined at that time. Even if daily allowance is not determined again (and no waiting period set), the maximum period starts from the beginning each time the employment condition is met.

At a weekly level, your employment condition is fulfilled when

  • there are at least 18 working hours during a calendar week; and
  • the pay is in accordance with the collective agreement. If there is no collective agreement in the sector, the pay for full-time work must be at least EUR 1,211 per month in 2019 and EUR 1,236 per month in 2020.

If you fulfil the employment condition during independent studies or labour market training, daily allowance will not be recalculated during the service.

Example, daily allowance is not recalculated

You will fulfil the employment condition again on 16 February 2018. The last time your daily allowance was calculated and a waiting period set was in February 2017, and the first paid day was and the maximum period started on 18 February 2017.

The first paid day of the new maximum period without a waiting period would be 17 February 2018, within one year of the commencement of the previous maximum period on 18 February 2017. Daily allowance will not be determined again and no waiting period will be set. The payment of daily allowance will be continued from 17 February 2018 with the allowance calculated in February 2017. The maximum period starts from the beginning.

Example, daily allowance is recalculated

You fulfil the employment condition again on 8 December 2019. The last time the daily allowance was calculated and a waiting period set was on 15–19 December 2018, but not a single day of daily allowance was paid out.

The first unemployment day is 9 December 2019. However, the payment of daily allowance did not commence in 2018, so the maximum period starting dates cannot be compared. A waiting period is reset from 9 December 2019, and the amount of daily allowance is recalculated. The maximum period starts from the beginning.

When you are a recipient of daily allowance, the unemployment fund counts the accrued weeks in employment. Therefore, you yourself do not need to monitor when you fulfil the employment condition again.

Protection rules for calculating a new daily allowance

When you fulfil the employment condition again during the maximum period, your level of daily allowance is at least 80% of the previous allowance. There is no 80% protection if the new employment condition is fulfilled only after the maximum payment period.

If you have reached the age of 58 and fulfil the employment condition, the amount of daily allowance will not change unless the pay calculated based on the new income information is higher than the previously calculated pay on which the daily allowance is based.

If you are aged 57–59 and have fulfilled the employment condition doing work arranged on the basis of an employment obligation, the amount of daily allowance will not change unless the pay calculated based on the new income information is higher than the previously calculated pay on which the daily allowance is based.

*  Temporary changes have been made to the unemployment security legislation, and employment condition can also be fulfilled with 13 working weeks. Read more about it here.