We cannot pay you the adjusted daily allowance if the working hours that you are paid for are more than 80% of a full-time employee’s working hours during the adjustment period. These working hours are determined in the collective agreement that applies to your job. If there is no collective agreement, we will apply the working hours determined in the Working Hours Act; 8 hours per day.
Typically, a full-time employee’s working hours are 7.5–8 hours per day. According to the law, these maximum working hours are converted to maximum working hours per month by using coefficient 21.5. The coefficient is the same regardless of how many actual working days there in a month.
The maximum working hours per month vary between161–172 hours, depending on the line of business. This gives us the 80% working time limit to be used for adjusted daily allowance that is around 128–137 hours per month, depending on the line of business.
Working time limit and payment-based adjustment
Your working hours and your salary always affect your entitlement to benefits during the adjustment period. When we compare the working time, our calculation always includes 21.5 weekdays in a month and 20 weekdays days in a period of 4 calendar weeks.
When we review the working time, we take into account the working hours that were used to determine your pay during the adjustment period. In practice, this means that the number of paydays that fall on the adjustment period will determine how many working hours we take into account in our review.
If you earned a part of your salary during an obstacle defined in the Unemployment Security Act, we will not take into account that part of your salary in the adjustment process. We will also ignore the working hours for that time when we review the working time.
Exceeding the working time during specific adjustment period
According to the law, we must shorten the adjustment period in certain cases. In these cases, the review of the working time will lead to unfortunate situations. If the adjustment period is shorter, a full-time worker’s adjusted maximum payment period for that period will also be shorter. In such a case, the working time limit in hours will be lower than normally. If your payday also falls on the specific adjustment period, you may get a negative decision because of exceeding the working time limit.
During the adjustment period of one month, a person is paid for 120 hours. The 80% working time limit is 129 hours (7.5 x 21.5 x 0.8). This means that exceeding the working time limit will not stop the payment of an adjusted daily allowance.
The person is paid the same amount during a specific adjustment period of two weeks. The working time limit is 84 hours (7.5 x 14 x 0.8). This means that we cannot pay an adjusted earnings-related daily allowance because the working time limit is exceeded.