We receive weekly questions that show there is a lot of incorrect information circulating about unemployment benefits. We have compiled 10 common misconceptions about earnings-related unemployment allowance and explain what is true and what is fiction.

1. The earnings-related allowance is 70% of your salary

Not true.

The earnings-related allowance is not calculated as a fixed percentage of your salary. Instead, its amount is determined according to a statutory calculation formula. Therefore, the allowance is not the same percentage of previous income for everyone.

For example:

• with a monthly salary of about €2,000, the allowance is about €1,300/month
• with a monthly salary of about €4,000, the allowance is about €2,100/month

You can conveniently estimate the amount of your allowance using our benefit calculator.

2. The amount of the allowance can easily be calculated based on membership fees or income register data

Not entirely true.

Membership fee information is never used when calculating the allowance. The Sotekassa membership fee is fixed and does not depend on your salary, so your income cannot be inferred from it.

Income register data, on the other hand, is used whenever possible. However, employers are not required to report all information needed to calculate the allowance to the income register. For this reason, we often also need additional information from you.

3. The amount of the benefit depends on which fund I belong to

False.

All unemployment funds follow the same Unemployment Security Act. The amount of your earnings-related allowance is determined by your previous income and the law, and the fund has no discretion regarding the amount of the benefit or eligibility.

However, membership fees and the services offered by different funds may vary.

4. A trade union supports me financially during unemployment

Not true.

Only unemployment funds pay earnings-related unemployment allowance. Trade union membership does not affect your entitlement to benefits or the amount of your allowance.

However, a union may support you in other ways, such as providing legal assistance in matters related to employment relationships or unpaid wages.

5. The first allowance application must always be submitted for a two-week period

Not completely true.

The allowance is usually applied for in monthly or four-week periods. However, you may submit your first application for a shorter period, at least two weeks. If you wish, you can also submit your application for a longer period.

Please note that the allowance must be applied for within three months from the beginning of the period being applied for.

6. You should not submit an application during a mandatory waiting period (sanction period)

False.

Even though no allowance is paid during the mandatory waiting period imposed by KEHA Centre, it is still advisable to submit an application. Fill in the application as usual and mark your actual status for each day (for example, unemployed or working).

When you submit the application already during the mandatory waiting period, we can calculate your allowance amount in advance. As a result, payment of the benefit usually starts faster after the mandatory waiting period ends than if you submit your first application only after the mandatory waiting period.

7. Accepting short-term or part-time work cancels the entire benefit

Not true.

You may receive unemployment allowance even if:

• you work full-time for no more than two weeks, or
• you work part-time (no more than 80% of maximum working hours).

In these situations, you may be paid an adjusted allowance, meaning that the wages you earn from work are taken into account when paying unemployment benefits. Fifty percent of your earned wages reduces the unemployment benefit paid for the period.

If you accept full-time work lasting more than two weeks, no allowance is paid for the period of employment. If you are paid vacation compensation for untaken vacation at the end of your employment, the compensation is periodized starting from the end of the employment relationship. During the periodization period, there is no entitlement to allowance. However, payment of unemployment allowance may continue immediately after the work and any periodization period.

8. Work lasting less than a year is not worth taking because it does not accumulate a new employment condition

Not true.

The employment condition is 12 months long, but it can be accumulated in parts. The employment condition must be fulfilled within 28 months. In addition, the 28-month review period can be extended in certain situations (for example, due to studies or incapacity for work).

Each month in which you are paid at least €930 in wages accumulates one month toward a new employment condition. If your wages are less than €930 but at least €465, you accumulate half a month toward the employment condition.

Also note that you do not need to fulfill the new employment condition in full immediately in order to receive earnings-related allowance. If you still have days remaining from a previous maximum period, payment of the allowance may continue based on those days until you fully meet the new employment condition.

9. I lose my accumulated employment condition if I take family leave or study leave

Mostly false.

Family leave or study leave generally does not interrupt the employment condition.

If you received unemployment benefits before family or study leave and still have days left in your maximum period, payment of the earnings-related allowance can continue after the leave.

If you were employed before the leave, family and study leaves extend the employment condition review period by up to 7 years. This means that in most situations you can receive unemployment allowance based on the employment condition accumulated before the leave.

You lose your accumulated employment condition only in exceptional situations if:

• you are absent from the labor market for more than 6 months without an acceptable reason, or
• you do not maintain continuous membership in an unemployment fund.

10. I can receive earnings-related allowance for a maximum of 400 days during my entire lifetime

False.

You can receive the maximum period of earnings-related allowance more than once during your lifetime.

Unemployment allowance has a maximum duration of 300, 400, or 500 days, depending on the length of your work history. When you fulfill the employment condition as a member of an unemployment fund, you may be paid earnings-related allowance for up to this maximum period.

However, you can always accumulate the employment condition again. Each time you fulfill the employment condition, the calculation of the maximum period starts over. It can restart even if you have not used the entire previous maximum period, and even if you have already received allowance for the full maximum period before.