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Committee proposed working condition reform to the Government

The committee focusing on the development of unemployment security decided to propose to the Government that the working condition be based in euros. YTK is of the opinion that there is demand for a euro-based working condition, as it improves the possibilities to increase the digitalisation of security. This enables us to better provide our members with personal and caring service.

On the basis of last autumn's budget discussion, the Government set up a tripartite committee to discuss the development of unemployment security. The committee was tasked with:

  • developing the working condition that is a prerequisite for receiving unemployment allowance, 
  • assessing the reform of unemployment security so that the length of employment affects the duration of earnings-related security,
  • investigating how unemployment security could be better adapted to the economic cycles,
  • reviewing a severance payment model that would replace a part of unemployment security,
  • assessing the possibilities of laid-off employees to develop their skills during the lay-off, and
  • reviewing the reform of labour market subsidy and the safeguarding of related appropriate services for job seekers.

There was a lot of disagreement within the committee on the issues, and the committee only proposed that the Government start preparing the working condition in accordance with the model of income-based daily allowance condition. In practice, this means that the Government would start preparing an amendment to the Unemployment Security Act that would result in the working condition being based on euros. We would thus move from an earnings-based working condition to a payment-based working condition.

In the proposed model, the working condition would be determined based on a monthly income limit (EUR 844 at the 2021 level). The right to daily allowance would be established when the required employment amounts to 6 months over a 28-month review period. In other words, the working condition would be accumulated by one month for each month during which the person is paid at least EUR 844 in wages. In addition, the working condition could also be accumulated in periods of 0.5 months if the earned income is EUR 422–843 per month. Learn more about the current working condition.

The Government will now make decisions concerning the law drafting that will be started. If the Government acts in accordance with the committee’s views, the Ministry of Social Affairs and Health will begin drafting the legislation. At this point, there is no further information on the drafting schedule for the legislation.

Supplementary comments

YTK is of the opinion that there is demand for a euro-based working condition, as it improves the possibilities to increase the digitalisation of security. This enables us to better provide our members with personal and caring service.

For this reason, our aim is to be involved and support the drafting of legislation. We want to make sure that the drafting of legislation takes into account the effects of the euro-based approach in the implementation, so that we can continue to offer our members the best possible support at every turn of the working life.