Unemployment security amendments approved by the Finnish Parliament
Parliament has approved a law amendment according to which provisions regarding extent of unemployment security will be cut and entitlement to benefits restricted. Changes will partly take force at the beginning of 2024, while some changes will start affecting benefit amounts and entitlement to benefits later in the course of 2024.
This is the first of a total of two law amendment entities to affect unemployment security. A second government proposal concerning changes to unemployment security is due to be presented in February 2024. This second law amendment entity comprises gradation for earnings-related daily allowances and discontinuation of age-related exceptions.
Self-risk periods to extend starting January
The law amendment will extend the self-risk period from five days to seven days. Self-risk period refers to a number of days at the start of unemployment, which do not qualify for earnings-related daily allowance.
Holiday allowances will also start affecting entitlement to earnings-related daily allowances starting January. If you have been employed full-time for a minimum duration of 2 weeks and this employment ends, your paid-out holiday allowances will be periodised.
Holiday allowance periodisation and self-risk periods do not elapse in parallel. Self-risk periods start after holiday allowances have been periodised, if applicable.
Child increases and exempt amounts to be discontinued starting April
Payment of child increases applied within unemployment security will be discontinued at the beginning of April. Accordingly, child increases will be paid for January to March only next year.
The current exempt amount € 300 applicable to work earnings will also be discontinued at the beginning of April. Exempt amount refers to the right of daily allowance receivers to earn € 300 before such work or business earnings start affect their daily allowances. Once this law amendment has taken force, work earnings will reduce unemployment security by 50 cents per each euro for the total work income.
No index increases on unemployment security
Parliament has also approved a law amendment, based on which index increases will be frozen for the years 2024 to 2027. In the case of earning-related unemployment security, this means that unemployment security basic components and turning points will remain at 2023 levels.
Law amendments will take force as follows:
Self-risk periods will be seven days for self-risk periods starting January 1, 2024 or later.
Holidays allowances paid based on employment contracts expiring on January 1, 2024, or later, will prevent payment of earnings-related daily allowance for a set period of time.
No child increases will be paid on unemployment days starting April 1, 2024, or later.
No exempt amounts will be considered when calculating daily allowances for daily allowance application periods starting April 1, 2024, or later.
Reduced child increase starting January 1, 2024
This year, an extraordinary raise in unemployment security child increases was made. This extraordinary raise will be discontinued at the beginning of 2024.
Parliament has approved a proposal to freeze index increases for the years 2024-2027. As a result of this, no customary index increases will be made to child increases at the turn of the year. No child increases will be paid after April 1, 2024.
| Child increase/day in 2023 | Child increase/day 1.1.-31.3.2024 | Child increase/day starting 1.4.2024 | |
| 1 child | € 7,01 | € 5,84 | – |
| 2 children | € 10,29 | € 8,57 | – |
| 3 or more children | € 13,26 | € 11,05 | – |
