The basic income during unemployment is secured by unemployment allowance or labour market support. The Social Insurance Institution takes care of the basic income ie. paying basic daily allowance and labour market support. A person insured in an unemployment fund gets the unemployment allowance as earnings-related daily allowance.
Earnings-related daily allowance comprises of a basic part that is equal to the basic daily allowance and the earnings-related part. Earnings-related daily allowance is defined by the earnings that predate the unemployment.
The earnings-related daily allowance is paid to an unemployed job-seeker not only during unemployment but also if they take part in an employment promoting service according to their employment plan. In addition, a person insured in an unemployment fund can be paid alternation compensation, which is calculated from the amount of earnings-related daily allowance. Some of the unemployment funds also provide an additional maritime insurance to those working in the so-called ships of flag of convenience.
There are 26 unemployment funds meant for employees and two entrepreneur’s funds. The Financial Supervisory Authority oversees the actions of the unemployment funds. All funds pay an equal allowance of an equal salary, because the decisions are based on the law and to the guidelines given by the supervising authority. In addition, the legislature obliges the funds to treat all members equally.