Labour market subsidy is means-tested
Income during other periods than the period of unemployment is also taken into account in the means-testing for the labour market subsidy. Regular income is periodised as income over a period of, for instance, one year.
Your parents' income may reduce the amount of labour market subsidy, but you will always receive at least half of the labour market subsidy due to you. Your parents' income affects your benefit if you live with your parents in the same household and you have not met the work requirement.
Your own earnings always reduce the amount of the labour market subsidy.
The basic unemployment allowance is not means-tested.
Effect of parental income
If you do not meet the work requirement and you live with your parents, your labour market subsidy will be reduced by 50%. If your parents’ income does not exceed EUR 1,781 per month, the reduction is not made. Each child that lives with your parents and whom the parents care for increases the income limit by EUR 106 per month.
If your parents' income exceeds the income limit, your labour market subsidy will be reduced by half of the income that exceeds the income limit (EUR 1,781 per month). If you do not provide information on your parents' income in the application, you will automatically be granted 50% of the labour market subsidy due to you.
You can estimate the effect of your parents' income on your labour market subsidy by using the calculator application.
| Parents' family circumstances | Parental income that entitles to full labour market subsidy | Parental income where exceeding the limit means you receive 50% of the labour market subsidy |
|---|---|---|
| No dependent children | EUR 1,781 per month | EUR 2,522 per month |
| for 1 child | EUR 1,887 per month | EUR 2,628 per month |
| for 2 children | EUR 1,993 per month | EUR 2,734 per month |
| for 3 children | EUR 2,099 per month | EUR 2,840 per month |
| for 4 children | EUR 2,205 per month | EUR 2,946 per month |
| for 5 children or more | EUR 2,311 per month | EUR 3,052 per month |
Labour market subsidy can be paid without any reduction if you can prove that your parents do not support you financially.
During participation in employment promoting measures, the labour market subsidy is paid without any reduction also to persons who live with their parents.
Capital income and other income
Your capital income and other income may reduce the amount of the labour market subsidy. They are thus taken into account in the means-test. Capital income includes for instance rental income, income from forestry, interest income and dividend income (including dividend income paid into an equity savings account). Informal care allowance, family caregiver fees and partial early old-age pension are also taken into account in the means-testing for the labour market subsidy.
Capital income and other income are not included when they are paid
- to persons having reached the age of 55 years who have met the work requirement before becoming unemployed, or
- during participation in employment promoting services
Income limit
For persons living alone, the labour market subsidy is reduced by capital income and other income that exceeds the income limit of EUR 311 per month. For those who receive full labour market subsidy, 75% of the income that exceeds the income limit is deducted.
- For married or cohabiting unemployed persons and unemployed persons with a family, the income limit is EUR 1,044 per month.
- The income limit is increased by EUR 130 for each dependent child.
- From the full labour market subsidy, 50% of the income that exceeds the income limit is deducted.