Työttömyysturvaa ilman muuta
Työttömyysturvaa ilman muuta
Työttömyysturvaa ilman muuta

Benefits ABC

Why is the fund asking for a notice of redundancy? I have already sent you an employment certificate, is that not enough?

Employment certificate is not generally needed at all. We’ll need a notice of redundancy instead. The date of redundancy does not become clear from an employment certificate, because it only states the dates of the beginning and end of an employment. For us it is import to find out the actual date of redundancy, because the period of notice as calculated from that date. The period of notice is determined according to contracts of employment act, collective agreement of your line of work or what has been agreed about that in your contract of employment.  A person is not entitled to unemployment benefits for a period during which (s)he is entitled to pay for the period of notice from the employer. Provided that other preconditions are fulfilled, the right to earnings-related allowance begins after the period of notice used in the employment relationship, at the earliest.

What is the waiting period and when is it set?

In unemployment allowance, there is a waiting period for which the claimant is not entitled unemployment benefits. The waiting period amounts to seven full working days. The days do not have to be consecutive, but they must accrue during eight consecutive calendar weeks. A calendar week can include a maximum of five waiting days. The waiting period for claimants working a shortened working week or part-time is met when they have accumulated an unemployment period equivalent to seven full working days. 

In order for unemployed days to be counted as waiting days, the claimant should be registered as an unemployed job-seeker with the employment office. Days for which the claimant is not entitled to the allowance for example due to allocation of holiday compensation, period of notice, or labour politic suspension, cannot be counted towards the waiting period. Furthermore, the waiting period cannot be set for a period during which the claimant is not entitled to adjusted allowance due to exceeding the limits on working hours. 

The waiting period is set, when the employment condition is met and counting the maximum time begins anew. The waiting period is not set, however, if you had a waiting period set at the beginning of your previous maximum period, and your new maximum period begins within a year of this. In this case a new salary definition is also not performed. 

Waiting period is not a hindrance for paying earnings-related daily allowance, if you are in an employment promoting service.

Should I apply for benefits even during a labour politic suspension?

You do not necessarily have to fill in applications during a suspension. When applying for benefits for the first time after the suspension, however, the claimant should inform the fund if (s)he has been completely unemployed during the suspension.

If this is your first application and you send it to the fund normally including the period of suspension, the handling of your application will be quicker if you are still unemployed. This is because during the suspension the first application will be handled and the daily allowance determined.

If you want to act only after the suspension, remember to notify the fund about your work income during the suspension. If the claimant has been employed as a part-time or a full-time employee during the suspension, details of the employment have to be sent to the fund attached to the application.

My work place is undergoing co-operation negotiations and my employer would pay me a 12-month salary, if we agree on terminating my employment or if I resign. How does this affect my unemployment security?

When an employment has been terminated, the employer might willingly pay the employee a benefit, to which they have no obligation under the law or a working agreement. These benefits are sometimes called a support package, a golden handshake or termination payment. These benefits can be agreed upon as early as when the employment begins, for example in the employment agreement, or when the employment is terminated. There necessarily is not an agreement between the parties about the payment, but the payment can be based on the employer’s will, for example. What is relevant is that the aforementioned benefit has to do with the termination of the employment.

If your employer pays you a 12-month salary because of termination of your employment, you are not entitled to unemployment daily allowance during the time on which the benefit is allocated. You do need to register as an unemployed job-seeker (employment office) immediately after the end of your employment and continue seeking work throughout the allocation period. If you do not register and are not on the employment market without a valid reason, you lose the accumulated employment condition.

The time, for which the financial benefit prevents you from getting unemployment daily allowance, is calculated by dividing the benefit by the daily salary of your latest employment. Pension and unemployment insurance payments are nor deducted from the salary on which the allocation is based, like they are deducted from the salary on which the daily allowance is based. If your employment is longer than the time that is used to defining the daily allowance’s salary, the allocation salary will be counted for the same time than the daily allowance’s salary is defined from. Financial benefit from the employer is allocated from the end of the employment, as a rule. If the payment is made after the termination, the allocation can start from the time of payment. If you send your application after two weeks of unemployment (and not after the time of the support package has been used according to your own calculations), your basic salary will be defined and you will receive a decision about the time, for which the support package hinders you from receiving daily allowance.

If the employment is terminated on common grounds or you quit, you are not entitled to increased earning’s supplement on basis of a long work career, even if the background reason is production, financial or other comparable reason. You are also not entitled to change security’s earnings-related supplement. You might be entitled to increased earnings-related benefit during employment promoting services, if other preconditions are met. A suspension by the employment offices might also result from your resignation.

My monthly salary has been 2500 euros, but in the decision on earnings-related allowance, the monthly salary on which the allowance is based on is smaller. Why?

The monthly salary on which earnings-related unemployment allowance is based is calculated for the period immediately preceding unemployment during which the employees' employment condition is met. In the calculation, the regular salary for a minimum of 26 calendar weeks according to the employment condition is taken into consideration.

Regular salary is considered to mean the gross taxable income from which holiday bonus or return-from-holiday-pay, and holiday compensation, is deducted. The calculation is conducted with the details on the salary certificate delivered to the fund. Before calculating the average daily wage, 4.64 % is deducted, representing pension and unemployment insurance contributions.

The average daily wage is arrived at by dividing the income after the above mentioned deductions by the calculated working days during the period of earning. If the salary certificate is for exactly 26 weeks, there are 130 work days included in the period. The earnings-related allowance is, then, determined by the average daily wage. The monthly salary on which the allowance is based is arrived at by multiplying the daily wage by 21.5.

As mentioned above, the salary on which the allowance is based, and the earnings-related daily allowance, is determined by the average daily wage and not by the monthly salary. The deduction of 4.64 % before determining the daily wage as such causes a difference between the salary on which the allowance is based, and the monthly wage received during the employment.    

Why is the fund asking for a salary certificate? I have already sent you a pay slip?

The salary certificate is usually asked for, because the pay slip does not contain all information that is needed by the fund. The primary clarification of the claimant's salary is a salary certificate signed by the employer including, in addition to detailed salary information, the employer's contact information.

The salary certificate should clearly state the details on period of earning, earned gross income and holiday bonus or holiday compensation paid by the employer. Also other compensations that have to do with for example the termination of the employment should be stated in the certificate. These details influence the amount of the regular wage and, therefore, the earnings-related allowance. All these details are usually not stated in a pay slip.

Only claimants of adjusted allowance can deliver a pay slip or a salary calculation in order to clarify the income during the adjustment period.

A child has been born in our family, how can I receive child support supplement?

You can apply for child support supplement by writing down the child's date of birth in the application form in the section where all children under 18 are notified of. Please include a copy of the birth certificate or an extract from the population register to your application. The population register provides the fund with information on children whose guardian the claimant is rather quickly, but the birth certificate can speed up the processing of your application. You can also apply for child support supplement with a separate application that you can deliver to the fund by mail, e-mail or through OmaYTK.

What is the 100 per cent rule?

Adjusted allowance and additional child support supplement together with the income earned during the adjustment period can amount to the salary on which the claimant's earnings-related allowance was based on, whilst never being less than the person would be entitled to receive as basic daily allowance.

Who is entitled to adjusted allowance?

As a fund member, you are entitled to receive adjusted allowance in the following circumstances:

  • You work part-time. You do not, however, qualify for the allowance if your working hours have been reduced on your own initiative.
  • Your daily working hours have been reduced due to lay-off. This also applies if your working has been prevented due to other employees' industrial action, which has no direct effect on your terms of employment or working conditions.
  • You have accepted full-time employment lasting a maximum of two weeks.
  • You have income from entrepreneurial activities or from self-employment.

I am applying for unemployment benefit and starting a part-time job. How do I apply for daily allowance and what documents do I need to send to the fund?

If you are working part-time and meet certain preconditions, you are entitled to adjusted allowance. Part-time work means part-time work in an employment or in a position, where the work time is a maximum of 80 per cent of the field’s full-time employee’s work time. The employer must oversee the working hours in order to be entitled to adjusted allowance.

Depending on the salary payment period, adjusted allowance is applied for in periods of four consecutive calendar weeks, a month or a calendar month. If the aforementioned adjustment periods include periods, for which there is no entitlement for unemployment benefit, the adjustment period is shortened accordingly.

Fifty per cent of your employment income earned during the adjustment period and exceeding the standard entitlement is deducted from your full earnings-related allowance. If the adjustment period is one month, the amount of the standard entitlement is 300 euro. If the adjustment period is four weeks, the amount of the standard entitlement is 279 euro.

The salary for the adjustment period is taken into consideration when calculating adjusted earnings-related daily allowance.

Because you have been receiving unemployment daily allowance, fill in the application according to the normal application and payment periods despite starting part-time work. Mark the done working hours on the application, so that the fund can observe the work time and follow the accumulation of employment condition during part-time work. Attach a salary certificate or a pay slip to the application, as a document for the salary of the application’s working period. Give the employer’s salary payment period in the form, so that in the future you can apply for adjusted allowance according to salary payment periods. If needed, the fund may ask you to give more information for your applications that we can come to an adjustment period that correlates with the salary period.

You must also deliver a copy of the work agreement of the part-time work to the fund. If a written work agreement has not been made, send the fund a written clarification from the employer, where the employment and its terms are clearly written out. Remember to notify the employment office of your part-time work.

I am working part-time. Will my salary on which the allowance is based be determined again based on this part-time work?

Earnings-related unemployment allowance is readjusted when the 26-calendar week employment condition is met within 28 months after the payment period of the allowance has started. As a rule, a calendar week with a minimum of 18 hours of work and with salary in line with the collective agreement, can be included in the employment condition. In some fields, like teaching, also work weeks under 18 hours of work are included in the employment condition. If you work part-time with at least 18 hours of work in a calendar week and the salary is in line with the collective agreement, your work week is included in the employment condition.

The allowance is re-determined when the 26-calendar week employment condition is met. The amount of daily allowance is not defined again when the amount of daily allowance has been previously defined at the beginning of the previous maximum period and the next maximum period begins within a year from the beginning of the previous maximum period. If the definition of the level of earnings-related daily allowance is done again before the maximum period of 500 days runs out, the level of daily allowance is protected by the so-called 80 per cent rule: The unemployment benefit that is defined by the new income information has to be at least 80 per cent of the daily allowance paid to you earlier. The level of earnings-related daily allowance changes yearly, when the basic part is scrutinized against the pension index.

A new 500-day maximum payment period commences each time a 26-calendar week return rule has been met.

How will the adjusted allowance influence the maximum payment period?

When counting the accrual of the maximum daily allowance payment period, the adjusted allowance is converted into full unemployment allowance days.

The claimant's full unemployment allowance is 54 euros and he receives 36,00 euros per day as adjusted allowance for 20 days, a total of 720 euros. For the maximum payment period, 13 days are counted. (720/54=13.33)


What is meant with post-protection?

Post-protection includes two separate situations. One concerns employees switching to entrepreneurship and the other entrepreneurs switching to paid employment.

A person who has turned from paid employee to entrepreneur and has become unemployed can, provided that other preconditions are met, be entitled to unemployment daily allowance based on income as an employee prior to the start of the entrepreneurship, if the entrepreneurial activities have lasted for a maximum of 18 months.

A person who has turned from entrepreneur to paid employee and has become unemployed is, after meeting the employment condition for entrepreneurs, entitled to unemployment daily allowance based on income as entrepreneur, if (s)he becomes unemployed within 24 weeks of starting paid employment.

For more details on the post-protection period and other issues concerning entrepreneurs and unemployment security, please see the menu "Benefits ABC – Entrepreneurship in unemployment security".

I have been a part-time entrepreneur for some time. According to the statement from the employment office, the labour politic preconditions have been investigated and I can be entitled to earnings-related unemployment allowance, provided that other requirements are met. How does my income from entrepreneurial activities affect the daily allowance?

The unemployment office gives a binding statement to the fund, whether the applicant is employed in entrepreneurial activities and if it is part-time or full-time. The unemployment office estimates the nature of the entrepreneurship always on the basis of amount of work, not on earned income. The unemployment offices usually give the statements for a period of time, ie. the nature of the entrepreneurship will be evaluated again periodically.

A person receiving income from part-time entrepreneurial activities can be entitled to adjusted allowance, once the employment offices have evaluated the work. In the adjustment of the earned income, the income is primarily taken into consideration according to the latest verified taxation, when possible. Please deliver a copy of the latest verified tax statement to the fund. The adjustment and payment period is a calendar month, which means that part-time entrepreneurs should apply for the allowance in periods of a calendar month. Once earned income is adjusted, the annual income is divided into monthly income and as a rule, half of the earned income effects the amount of payable daily allowance.

I am starting as a part-time entrepreneur retailing Tupperware products. How can I inform the fund of my income during the application period?

The income of part-time entrepreneurial activities is primarily taken into consideration according to the latest verified taxation. When the activities have only begun or the entrepreneurial activities have changed drastically, the confirmed taxation cannot be used. When the fund cannot use the verified taxation in estimating the income on which the adjustment is based on, the income is estimated according to taxation as far as possible.

With regard to self-employment which is so small-scale that it can be considered independent income earning (mostly work like selling Tupperware products and other network marketing), the person is obliged to a keep a so-called note book with details on receipts and expenditure in a chronological order. In these cases, assessing the income influencing in the adjustment is based on the details of the note book. These details of receipts and expenditure are, then, assessed according to the rules of taxation.

The application, adjustment, and payment period of a part-time entrepreneur is a calendar month. The clarification on receipts and expenditure should, therefore, also be presented per calendar month. After the entrepreneurial activities have lasted for a minimum of six months, the adjustable income will be an average of the reported six months. When the taxation of the year in question has been verified, the verified earned income of the entrepreneurial activities will be taken into consideration as adjustable income.

According to the Unemployment Security Act, who is considered an entrepreneur?

Under unemployment security, a person would be considered an entrepreneur when they work for income without employment relationship or office. As an entrepreneur can also be considered a co-owner of a limited company or a family member of an entrepreneur.

  A person is considered a partial owner if (s)he

  1. works in a senior position in company in which (s)he has at least a 15 % holding, or if his/her family members or (s)he and his/her family members together have at least a 30 % holding of the share capital
  2. works in a company in which (s)he holds, or if his/her family members or (s)he and his/her family members together hold at least one half (50 %)of the share capital
  3. works in another company or association in which (s)he has, or his/her family members or (s)he together with his/her family members have corresponding controlling power.

When counting the share of ownership, also indirect ownership through other companies or associations is taken into consideration, if the person in question has, or if his/her family members or (s)he and his/her family members together have at least 50% ownership in the intermediate association, or have corresponding controlling power.

I have been a member of an entrepreneurs' fund since 2003 and I have met the entrepreneurs' employment condition. I am now starting a paid employment, is it worthwhile joining an employees' fund?

When you start an employment, you can join YTK. If you become unemployed before meeting the employee’s 26-week employment condition, you are entitled to the unemployment allowance you would be entitled to in the entrepreneur’s fund. YTK will pay this allowance, if you have joined YTK, but the amount of allowance is defined by the fund whose member you have been during meeting the condition.

I am going to work abroad for a local employer. What should I do?

Most EU/EEA countries have a general unemployment security system, under which employees are automatically insured. In these countries, you do not need to apply for membership in an unemployment fund separately. In Sweden and Denmark, there is a voluntary unemployment insurance that is taken care of by unemployment funds, and you need to join these funds for unemployment security. Since you cannot, however, be covered by the unemployment security system of two countries at the same time, you should resign from the fund in Finland. If you are employed only for a short period of less than three months, resignation is not necessary.

When you return to Finland from working abroad, the insurance and employment in an EU/EEA country can be included in the Finnish employment condition, if you deliver a U1 form (EU) or E301 certificate (EEA) to the fund. U1 form and E301 certificate are asked for from the working countries’ authorities. It is also a precondition that you have joined an unemployment fund in Finland within a month from when you ceased being protected by the unemployment security of the foreign country. For this reason it is necessary to join an unemployment fund when returning from abroad, even if you are unemployed.

It is also a precondition for entitlement to unemployment daily allowance that you have worked in Finland in a job that gathers the employment condition, for at least a four week period. After this the work in an EU/EEA country is counted into the employment condition. The salary on which the earnings-related daily allowance is based on, is defined by the four week work done in Finland. If you have worked in an EU/EEA country for less than a year, this four week period is not a precondition. In this case the salary on which the earnings-related daily allowance is based on, is defined by the work done abroad.

My Finnish employer is sending me to work abroad. Can I continue as member in a Finnish unemployment fund?

You are a sent employee, if you work for a salary and you employer in Finland sends you temporarily to work abroad and pays a salary for the period of working abroad.

When you work as a sent employee, the work abroad is taken into consideration in your employment condition, like work in Finland. The employer must however pay the obligatory employer payments in Finland and you must keep your membership in the fund in Finland.

I have been working abroad for a local employer. The employment has now ended and I am returning to Finland without work. What should I do?

Remember to register as an unemployed job-seeker at the employment office as soon as you return to Finland. The following necessary procedures depend on where are you returning from.

a)     EU/EEA countries

In case your membership in a Finnish unemployment fund is not valid, please apply for membership, at the latest, within a month of the date you ceased to be covered by the unemployment insurance of another EU/EEA country. Between the Nordic countries, this period is eight weeks, if you return from a Nordic country. Please deliver the fund a U1 form (EU countries) or an E 301 (EEA countries) certificate from the labour authorities of your country of employment together with employment and salary certificates for your employment relationships abroad. U1 form and E301 certificate is asked from the working country’s authorities.

b)     non-treaty countries, i.e. so-called third countries

Work done outside the EU/EEA countries and Switzerland cannot be read into the Finnish employment condition. Your employment in the third countries accumulates the employment condition only if the employment is work done as a sent employee in service for a Finnish employer. When returning to Finland, you are entitled to earnings-related daily allowance paid by a Finnish unemployment fund if:

  • You have maintained your membership in a Finnish unemployment fund during your employment. Please notice that joining a fund as an unemployed person is not possible when returning from third countries.
  • You live in Finland and otherwise meet the preconditions for payments of daily allowance, according to the unemployment security legislation. If necessary, we ask for the Social Insurance Institution’s decision about the residence in Finland.

I am living in Finland but I work in Norway for a local employer. Can I join a Finnish unemployment fund?

You cannot join a fund in Finland, because you should be covered by the unemployment security system of the country of employment. In Norway, all employees are automatically covered by the unemployment insurance system, so you do not need to join any fund. However, if you return to Finland weekly, you are a so-called border worker, whose unemployment security is defined according to the answer to question number eight.

My spouse has received a job abroad and I am also moving abroad for at least a year. I am planning on staying home and taking care of our four-year-old child, so I won't be working. Should I continue paying the fund's membership fee?

If a member of an employees' fund is absent from the labour market without a valid reason for more than six months, (s)he cannot be entitled to employees' earnings-related unemployment allowance before meeting a new employment condition after the absence. In order for the employment condition to stay in force, the claimant must always have a personal valid reason for his/her absence. Unemployment security is not connected, for example, to unemployment security of a spouse or a common law spouse. This means that a spouse's employment abroad is not a valid reason for not being available at the labour market, and neither is taking care of a child over the age of three.

If you are living abroad for more than six months taking care of a child over the age of three, it is not worthwhile to keep your membership valid and pay membership fees. If you return to Finland, it is worthwhile to join the fund again and you must meet a new employment condition before being able to receive unemployment benefits.

The Nordic countries have agreed some special regulations on transferring employment and insurance periods between these countries. What are these regulations?

The Nordic countries have agreed upon certain facilitations for transferring insurance and employment periods from one Nordic country to another, if you are a so-called returning worker. You are a Nordic returning worker, if you have (in the country in which you are applying for unemployment security) during the last five years:

  • been covered by the unemployment security system of the country in question, that is, been a member in an unemployment fund, or 
  • been employed according the regulations of the country in question (in Finland, the requirement is a minimum of one calendar week with at least 18 hours of work), or,
  • received unemployment benefits (in Finland, labour market support is not included in these benefits), or 
  • been employed as an entrepreneur (in Finland, a minimum of one period includable in the entrepreneurs' employment condition).

If you are a returning worker as described above, you can apply for a membership within 8 weeks from when your unemployment security ended in the country from where you are returning from. Sweden, Finland, and Denmark have a voluntary unemployment security system. In these countries, it is necessary to join a fund, whereas, for example, in Norway you are automatically covered by the Norwegian unemployment insurance system.

In addition, the Nordic countries have agreed that no four-week employment period is required before the start of the allowance period in cases where a person has been employed for more than one year in another Nordic country.

I live in Helsinki, but work in Tallinn. How is my unemployment security determined?

You are most likely a border worker, as described in unemployment security regulations. A border worker means that you work in one country and live in another country where you return to daily or at least once a week. Thus if you work in Tallinn but return to Finland at least once a week, you are a border worker. Border worker is insured in the country, where you work, ie. in this case in Estonia. If you become partly unemployed or laid off, you need to apply for unemployment benefit in Estonia. If you become completely unemployed, you get unemployment benefits from Finland without the precondition of four weeks’ work.

Who can be entitled to compensation for alternation leave?

A basic requirement is that you have had employment abiding by the employment pensions legislation for a minimum period of 20 years (work history requirement). This work history can also include work carried out before the age of 23. Furthermore, a period of entrepreneurship can be included in a person's work history. When counting the work history, certain periods can be likened to the previously mentioned pensionable employment, such as parental leave, military service, non-military service and care leave, based on the Employment Contracts Act, or a collective bargaining contract on civil servants. From the work history, a maximum of quarter can be likened time. When counting the periods of likened work history only full calendar months are taken into consideration.

Another absolute requirement for the entitlement of alternation leave is that you have worked for the same employer continuously for a minimum of thirteen months before the start of the alternation leave. This one-year period may include a total of 30 calendar days of unpaid leave. Absences due to illness or accident are likened to work. It is also required that the previously mentioned work has been full-time, which means that your working hours have been over 75 per cent of the working hours of a full-time employee.

How much is the compensation for alternation leave?

The full amount of the compensation is 70% of the amount of the unemployment allowance you would be entitled to when unemployed. Child support increases are not taken into consideration. The alternation leave compensation is based on the unemployment allowance, which, in this case, is calculated on the earnings of the previous 52 weeks. Benefits, which you will get during the alternation leave according to the alternation agreement, are not counted to the compensation.

Can alternation leave be divided into several periods?

Alternation leave is kept in one period. However, alternation leave can be prolonged. The prolonging must be agreed upon two months before the agreed alternation leave ends. The alternation leave must be, however, kept in its entirety within two years of its beginning and its added duration cannot exceed the maximum duration of alternation leave.

If the alternation leave contract has been made at latest on 31.12.2015 and the alternation leave begins at latest on 31.3.2016, the alternation leave can be agreed to be kept in periods based on the old legislation. Each period must be at least 100 calendar days long. You must agree on these kinds of alternation leave periods in the alternation contract before the leave begins. Changing the times of the periods can be negotiated with your employer also during the alternation leave.

Which enclosures do I need to send you with my application for compensation for alternation leave?

Compensation is applied for with a specific application form obtainable at employment offices or at our website under Forms. Please enclose a salary certificate for 52 calendar weeks prior to the alternation leave, and a copy of the alternation contract.

For which period should the salary certificate be written when applying alternation compensation?

The unemployment allowance building the basis for compensation for alternation leave is calculated from the salary for 52 weeks prior to the alternation leave. The salary certificate should thus be for 52 calendar weeks.

How do occasional days of work for my own employer affect my compensation for alternation leave?

Compensation for alternation leave can be paid for a maximum of five days per week. If you are working for your own employer, you are not entitled to the compensation for the days of work. If the claimant, for example, is working for two days per week for his/her own employer, (s)he can be entitled to a maximum of three days of compensation regardless of how much work has been done or of the work situating to a weekend. If you begin work, you need to notify the fund on the matter as soon as possible, so that the fund does not pay you benefits for those days you are not entitled to it.

I receive pay for annual holiday during my alternation leave. How does that affect the compensation? How about holiday bonus?

A person is not entitled to compensation for alternation leave during periods for which (s)he receives pay or holiday pay. Holiday bonus does not have an effect on the compensation.

I have been made redundant during my alternation leave. How does termination of the employment relationship affect the compensation?

Compensation for alternation leave cannot be paid after the employment relationship has been terminated. Please inform the unemployment fund and the employment office on the termination. Remember to see if you can be entitled to earnings-related unemployment allowance!

Do I need to inform the employment office on the termination of my employment during alternation leave? Does the employer notify the office?

You need to inform the employment office and your unemployment fund on the termination of the employment relationship during alternation leave.