Pay subsidy and earnings-related daily allowance

In some cases, the TE Office may  grant a pay subsidy to an employer 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 your daily allowance.

How does pay subsidy affect the daily allowance?

In employment with pay subsidy, we include in the working condition 75% of the calendar weeks in which you worked.

As a rule, to fulfil the working condition, you must have worked for 26 weeks in work that meets the requirements. As we only include 75% of the work with pay subsidy in the working condition, you need to work in employment with pay subsidy for at least 35 calendar weeks in order to fulfil the working condition.

In other words,  the exception affects the duration of the required working condition. It does not directly affect the amount of the daily allowance.

How does employment by statutory obligation affect the daily allowance?

If your employment with pay subsidy has been arranged due  a statutory employment obligation in accordance with the Act on Public Employment and Business Service, we will include all calendar weeks that fulfil the working condition in the working condition in the normal manner.

This means that 26 weeks of employment by statutory obligation is enough to fulfil the working  condition, even if the employer received a pay subsidy for the salary costs.

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