Labour market subsidy

Labour market service model - effect on Kela benefits

Kela will continue to base its decisions on the labour policy statements issued by the TE Services or the municipal authorities. Keep your registration as a jobseeker valid, show sufficient job search activity and follow the employment plan, That way you will not lose your benefits. If you do lose your benefits, the mandatory waiting period you must complete will be shorter.

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The labour market subsidy is money intended to support you while you are looking for work.

The benefit is intended for

  • unemployed persons who enter the labour market for the first time or who have not worked long enough, i.e. do not meet the work requirement.
  • unemployed persons who can no longer receive basic or earnings-related unemployment allowance since the maximum payment period for these benefits has been reached.

The labour market subsidy is means-tested, which means that the amount of the benefit is affected by your income as well as by your parents' income if you live with them in the same household.

There is a waiting period of 5 days in the labour market subsidy. The time period for receiving labour market subsidy is not limited.

Benefits that reduce the labour market subsidy

Any other social security benefits you may have are normally deducted from your labour market subsidy.

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