Changes to be introduced to unemployment security rules in 2023

The Finnish Government has decided to make a number of changes to the Unemployment Allowances Act, which are due to take effect on 1 January 2023. These amendments are yet to be approved by the Parliament of Finland. We will provide updates as soon as we hear more about the progress and content of the reform.

Switch to a euro-denominated employment requirement

The Government has decided to introduce a euro-denominated employment requirement. This means that, in the future, the amount of an unemployed person’s daily allowance will be calculated based on their monthly earnings. At present, whether or not an applicant satisfies the employment requirement depends on the number of hours they have worked. To satisfy the employment requirement, applicants must have worked at least 18 hours a week for 26 calendar weeks during a review period of 28 months. In the future, eligibility for unemployment benefits will depend on the applicant’s monthly earnings instead of the hours they have worked. Under the new rules, every month during which the applicant earned at least EUR 844 counts towards satisfying the employment requirement. So-called half months, i.e. months during which an applicant has earned at least EUR 422, can also be taken into account.

Imposition of a job search obligation on applicants engaged in independent study

The Government has decided to abolish a number of exemptions relating to recipients of unemployment benefits who are engaged in independent study under the so-called Nordic labour market service model. Going forward, these applicants, too, will usually be subject to the job search obligation. The Nordic labour market service model is due to enter into force on 2 May 2022. There are plans to review the model at the beginning of 2023, at which point applicants who are engaged in independent study will be expected to apply for at least four jobs each month in order to remain eligible for unemployment benefits. The rule change does not apply to individuals who do not have a professional qualification, however. The TE Office has the power to relax a student’s job search obligation in certain circumstances.

Copyright royalties no longer to be taken into account in the adjustment of allowances

The Government has decided to exclude copyright royalties from the income based on which unemployment allowances are adjusted from the beginning of 2023 onwards. Income from copyright royalties will therefore no longer reduce the amount of an applicant’s earnings-related allowance. At present, copyright royalties are treated as regular income and as such are taken into account in the calculation of adjusted allowances.

Reform of subsidised pay rules

Pay subsidies are a form of financial support that the TE Office pays to employers to reimburse them for some of the cost of hiring unemployed job-seekers. The Government has decided to revise the laws governing subsidised work and impose certain restrictions on the use of the subsidies. Going forward, the largest employers will no longer be able to claim 100% pay subsidies.

More information

Please see the Finnish Government’s website for more information about the legislative reforms.