Government decided on condition regarding employment measured by earnings

The Government has decided on employment promoting measures, and the most significant change is the condition regarding employment measures by earnings. Furthermore, the Government decided that copyright remuneration would not affect the unemployment security in the future. The conditions of independent studying on unemployment security will also be amended. The targeted schedule is tight with goal at the beginning of the next year, but the bills have not been given yet.

Condition regarding employment measured by earnings

Measurement by earnings means that the basis of the condition regarding employment would be the number of euros earned, and not the working time, as it is at present. Employment will be required in the future, too, but that working time will be determined by earnings.

Pursuant to the currently valid law, the condition regarding employment is accumulated according to the number of hours worked. To receive earnings-related daily allowance you need to have worked for at least 26 weeks (approximately 6 months) during the 28 months that preceded the unemployment. Employment in which your working time has been at least 18 hours per calendar week and your salary at least in accordance with the collective agreement is taken into account for this purpose.

As a result of the proposed measurement by earnings, you would be entitled to receive daily allowance when the required employment has lasted around six months. Each month during which you are paid a salary of at least 844 euros (level of 2021) would accumulate the condition regarding employment by one month. In addition, the condition regarding employment could be accumulated in 0.5 month periods.

How would the proposed measurement by earnings affect the daily allowance?

As a general rule, the proposed measurement by earnings will not affect the amount of earnings-related daily allowance. Instead, the level of earnings-related security may decrease for those in part-time employment. That is because the condition regarding employment may be fulfilled with a smaller work contribution and salary, and thus the amount of daily allowance will also be smaller. The specific details and effects of the amendment will not, however, be determined until the preparation of the law proceeds.

If you are in full-time employment and have no unsalaried absences, your salary exceeds the new income limit of 844 euros/month at the level of 2021, and nothing would change if you became unemployed or were laid off. Your earnings-related daily allowance would be calculated according to the salary for the six months preceding your unemployment.

If you are in temporary or part-time employment, your entitlement to receive earnings-related daily allowance would in the future depend on the salary you earn per month. When you work less than 18 hours per month, it may become easier for you to receive earnings-related daily allowance, if your earnings per month exceed the income limit of 844 euros/month.

According to the bill, the condition regarding employment may also be accumulated in periods of half a month, if you do not work regularly in every week of the month. If your salary is small, accumulating earnings-related cover requires more work compared to employment with higher pay. The amount of daily allowance will also be small. At the planned income limit, no earnings-related part would be accumulated.

Changes in combining studying and unemployment security

According to the Government’s employment package, also those studying independently on unemployment security would be obliged to seek a job. The obligation to seek a job would not, however, concern those with no vocational qualification.

Furthermore, the plan is to clarify the combining of part-time studying and unemployment security, and enable broader studying and development of own know-how alongside job-seeking without losing the unemployment benefit. The amendment would concern studies the completion of which is possible alongside working, and thus they do not generally present an obstacle to take on full-time employment.