Pay subsidy and earnings-related daily allowance

The TE Office may on certain grounds grant an employer pay subsidy for salary costs. If you become unemployed, and salary from such work is taken into account in the calculation of your daily allowance, we will apply an exceptional rule in calculating the daily allowance.

How does pay subsidy affect the daily allowance?

In employment with pay subsidy, 75 per cent of the calendar weeks in which you have been working are included in the condition regarding employment.

As a general rule, the requirement for fulfilling the condition regarding employment is 26 weeks of employment that meet the requirements. As only 75 per cent of the work with pay subsidy is included in the condition regarding employment, you need to work in employment with pay subsidy for a minimum of 35 calendar weeks to fulfil the condition regarding employment.

So the exception affects the duration of the required condition regarding employment. It does not have a direct effect on the amount of daily allowance.

How does obligatory employment affect the daily allowance?

If employment with pay subsidy has been arranged on the basis of the employment obligation in accordance with the Act on Public Employment and Business Service, all calendar weeks that fulfil the condition regarding employment shall be included in the condition regarding employment as per normal.

Thus 26 weeks of obligatory employment is enough for fulfilling the condition regarding employment, even if the employer had received pay subsidy for the salary costs.

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