Improvements affecting self-risk time and labour market subsidy for entrepreneurs approved

Parliament has taken a decision on temporary amendments to the Unemployment Security Act. These amendments enable unemployment benefits to be paid starting from the first day of unemployment, without observing a five-day self-risk period during which no benefits would normally be paid. In addition, Kela can pay labour market subsidy to entrepreneurs during ongoing entrepreneurial business.

The law amendments will remain in force over the time period January 1 through February 28, 2022.

Self-risk time

Based on the amendment, payment of daily unemployment allowance starts on the first day of unemployment, i.e., without a five-day self-risk period. Normally, a five-day self-risk period without unemployment benefit would apply. For people working partially, the self-risk period is based on days of unemployment or lay-off.

The amendment concerning self-risk time is applicable in cases, where the first day of the self-risk period falls within the time period January 1 through February 28, 2022.

Please note that the amendment does not concern self-risk periods which have started in December or earlier, even though a part of the self-risk period would fall within January or February. Accordingly, unemployment benefits may be paid during self-risk periods falling within March or later, as long as the first self-risk period day has been in February.

Labour market subsidy for entrepreneurs

In accordance with the law amendment, entrepreneurs may be paid a labour market subsidy by Kela, in case their business income has been reduced as a result of the corona pandemic. However, labour market subsidy can be granted only in case a limit income of € 1,104 per month per person working for the company in an entrepreneurial position is met.

Benefits can be paid retroactively

In cases where unemployment has started on January 1, 2022, those concerned may already have received their first decisions on income-related allowance. In such cases, benefit payments to cover the self-risk period could not be granted at the time when the decision was made, since the law amendment was still in process. The remaining share covering the self-risk period will be paid as soon as the law amendment has been confirmed. Unemployment funds will take care of such retroactive payments without separate request.