01/04/12

Improvements in basic unemployment security

The rates of unemployment benefits will be increased at the turn of the year in accordance with the Government's programme. In addition, the recently achieved framework agreement between labour market partners offers more flexibility in the coordination of benefits and in temporary lay-off situations.

Starting 1 January 2012, the full amount of the basic unemployment allowance and the labour market subsidy will be €31.36 per day, including an index adjustment. This represent an increase of about €120 over current benefit rates.

The income limits applicable to the general housing allowance will also be raised by €120 per month. This ensures that persons living alone and in receipt of the full-rate basic unemployment allowance or labour market subsidy will qualify for the full housing allowance as far as their income is concerned.

The child increase, supplementary amount and transition assistance payments will be increased by the index adjustment factor on 1 January 2012. The child increase will be payable at a rate of €5.06 per day for one child, €7.43 per day for two children, and €9.58 per day for three or more children.

The supplementary amount and transitional assistance paid on top of the basic unemployment allowance and the labour market subsidy will be paid at a rate of €4.59 per day.

Wider range of potential claimants

With the general increase in benefit levels, the range of potential claimants of unemployment benefits is widened to include persons previously disqualified on account of an income test. Starting 1 January 2012, labour market subsidy claimants without children will not suffer a reduction in their subsidy before their spouse's income exceeds €x,xxx per month. No labour market subsidy is paid if their spouse's income exceeds €xxx per month.

As for current recipients, Kela will check the amount of their subsidy automatically. Unemployed persons who failed to qualify for labour market subsidy because of their spouse's income or their own investment income, or who have chosen not to claim, should check their situation and file a new claim for labour market subsidy.

All unemployment benefits can be claimed online at http://www.kela.fi/asiointi (Finnish and Swedish only). A valid Internet banking user ID and password are needed to log into the service.

More flexibility in rules concerning benefit coordination and temporary lay-off

Unemployment benefits are adjusted to Income earned from work or self-employment during a period of unemployment. The basic rule is that each euro in earned income decreases the benefit by 50 cents. The benefit coordination rules will also be made more flexible. Starting 1 January 2012, claimants may work up to 80% rather than 75% of industry-standard maximum hours without forfeiting their unemployment benefit.

The unemployment benefit payable to persons laid off for one or several full days per week will no longer be adjusted. Instead, a full unemployment benefit is paid for the lay-off days. No benefit is provided for days on which they are not laid off.

Guarantee pension: Changes in the effect on unemployment benefits

The effect of the guarantee pension on unemployment benefits will change on 1 January 2012. In the great majority of cases, recipients of unemployment benefits do not qualify for guarantee pension because most of the pensions that may be accompanied by a guarantee pension prevent the unemployment benefit from being paid out. However, guarantee pension may be payable in connection with certain disability pensions. In such situations, the guarantee pension will in future be deducted from the unemployment benefit.

Additional information for customers:
www.kela.fi/tyottomyys

Customer service number for questions concerning unemployment-related benefits: 020 692 210, Monday to Friday from 8 am to 6 pm.

For media inquiries, contact:
Kela's Pension and Income Security Department,
Mari Köngäs, Legal Counsel
Annika Hautaranta, Coordinator
firstname.surname (at) kela.fi