Employment requirement

You can apply for an earnings-related allowance if you satisfy the employment requirement while being a member of an unemployment fund. You can satisfy the employment requirement by working several isolated periods, as long as all these take place within the review period. Only work where social security contributions have been paid and advance tax deductions made, can be counted towards fulfilling the employment requirement. You must have been paid for the work in accordance with a collective bargaining agreement. If there is no collective bargaining agreement in your industry, you must have been paid at least EUR 1,399 per month for full-time work in 2024. Periods that you spend on paid annual leave or paid sick leave also count towards the employment requirement. Periods for which you received partial sickness benefits or reduced sick pay do not count towards the employment requirement. Each calendar week that contributes to the employment requirement and each employment requirement month can be counted towards the employment requirement only once.  

Employment requirement until September 1, 2024

You satisfy the employment requirement when you have worked for a period of 26 calendar weeks. Until 1 September 2024, the employment requirement will accumulate based on working hours. Every week during which you worked at least 18 hours counts towards the employment requirement. In most cases, only weeks during which you worked at least 18 hours count towards the employment requirement. There are, however, exceptions, such as in the case of teaching staff and artists. These exceptions are provided for in a Government Decree (1330/2002).  

Employment requirement from September 2, 2024

The employment requirement will extend from 26 weeks (approximately 6 months) to 12 calendar months as of 2 September 2024. The change means that 12 employment requirement months are required to fulfil the employment requirement. The length of the employment requirement is exceptionally six months if the employment requirement is fulfilled after 1 September 2024 through subsidised work, work based on an employment obligation or services arranged based on an employment obligation. If the 12-month employment requirement is not fully met for the period after 2nd September 2024, we can include the employment requirement weeks accumulated before 2nd September 2024. In this case, we convert the employment requirement weeks into employment requirement months. Three or four calendar weeks that meet the employment requirement correspond to a full employment requirement month, and one or two calendar weeks that meet the employment requirement correspond to half of an employment requirement month.  

The employment requirement accumulates based on earnings

As of 2 September 2024, the employment requirement will accumulate based on earnings. A calendar month can count towards the employment requirement if the paid earnings are at least EUR 930 gross in that month. The employment requirement could also be accumulated as half-months if the earned income in the calendar month is at least EUR 465 but less than EUR 930. Two halves of an employment requirement month contribute to one full employment requirement month. The two half months do not need to be consecutive to be combined. If the employment requirement consists entirely of half months, it will take 24 months to fulfil the employment requirement. A salary paid on or after 2nd September 2024 will only count towards the employment requirement if it is based on work performed on or after 2nd September 2024.  

Old or New Employment Requirement?

The new 12-calendar-month employment requirement will be used if you have worked after 1st September 2024 and have accumulated at least half an employment requirement month with this work. A calendar month counts towards the employment requirement if you have earned at least EUR 930 during that month. Half an employment requirement month is accumulated if the salary is less than EUR 930 but at least EUR 465. Until 1 September 2024, the employment requirement is 26 calendar weeks and will accumulate based on working hours. Example 1 Your job ends on 31st August 2024, and you are a job seeker from 1st September 2024. You have been working 20 hours per week since 1st March 2024. The fulfilment of the employment requirement is reviewed based on the hours you have worked. Your 26-week employment requirement is fulfilled on 31st August 2024. Example 2 Your job ends on Sunday, 8th September 2024, and you are a job seeker from 9th September 2024. You have been working 20 hours per week since 1st March 2024. You receive EUR 300 in wages for work done in September, paid on 30th September 2024. September does not count towards the employment requirement because the salary is less than EUR 465. Thus, the new employment requirement does not apply. Your 26-week employment requirement is fulfilled on Sunday, 1st September 2024. Example 3 Your job ends on Sunday, 15th September 2024, and you are a job seeker from 16th September 2024. You have been in full-time employment since 1st March 2024. You receive EUR 1,500 in wages for work done in September, paid on 30th September 2024. September counts as an employment requirement month, meaning 12 employment requirement months are needed to fulfil the employment requirement. Therefore, your employment requirement is not met.  

Review period

‘Review period’ means the 28 months immediately preceding the date on which you signed up as an unemployed job-seeker with the TE Office. The review period is the period during which you must satisfy the employment requirement. In some circumstances, the review period can be extended by up to seven years. Examples of acceptable reasons for extending the review period include

• illness
• periods for which you received partial sickness benefits or reduced sick pay
• partial disability pension or part-time pension if you were working less than 18 hours a week
• rehabilitation
• military service and alternative service
• birth of a child and care or foster care of a child under the age of 3
• care of a family member or relative
• subsidised work that does not count towards the employment requirement
• scholarship for scientific or artistic work
• services that promote employment
• full-time education
• alternation leave and
• imprisonment

Extensions longer than seven years are also possible in the case of a partial disability pension and part-time pension.  

Resatisfaction of the employment requirement

We will recalculate your earnings-related allowance when you satisfy the 26-week employment requirement even if you have not yet used up your current maximum earnings-related allowance period. The calculation takes into account your wages for the calendar weeks that count towards the employment requirement. Your personal liability period will also reset. However, we will not recalculate your earnings-related allowance if

• you satisfy the 26-week employment requirement no later than September 1, 2024,
• the amount of your allowance was calculated when you last satisfied the employment requirement, and
• your new maximum period would begin within one year of the start of your previous maximum period.

If you resatisfy the employment requirement while engaged in independent study or labour market training, we will not recalculate the amount of your earnings-related allowance in the middle of your studies or training.  

80% protection rule

If you have not yet used up your current maximum earnings-related allowance period when you resatisfy the employment requirement, your new earnings-related allowance will be at least 80% of your previous allowance.  

Recalculation of earnings-related allowances of persons aged 58 years and above

If you are at least 58 years of age and satisfy the employment requirement at the latest 1 September 2024, we will not adjust the wage based on which your daily allowance is calculated, except where your new wage is higher. This rule only applies if

• you resatisfy the 26 weeks employment requirement at the latest 1 September 2024 and your daily allowance is recalculated,
• you are at least 58 years old when you satisfy the employment requirement, and
• you have previously been paid an earnings-related allowance for at least one day.

The level of your earnings-related allowance is not protected if your employment requirement is satisfied again after 1 September 2024 and the length of the employment requirement is 12 months. Example 1 Your employment requirement is satisfied based on work ending on 31 August 2024. Therefore, the level of your earnings-related allowance is protected. The salary on which your earnings-related allowance is based will only be recalculated if the new salary is higher than the previous one. Example 2 Your employment requirement is satisfied based on work ending on 31 March 2025. The salary on which your earnings-related allowance is based will be recalculated, even if your new salary is lower than the previous one.  

Subsidised work

Subsidised work counts 75 percent towards the employment requirement if the employment begins by 1 September 2024. Subsidised work will not count towards the employment requirement if the employment begins on or after 2 September 2024. Exceptionally, part of the subsidised work can count towards the employment requirement if the wage subsidy is granted for the employment of a person with reduced working capacity or for the employment of a person who has been unemployed for a long time and is 60 years old or older.  

Employment with wage subsidy commenced no later than 1 September 2024.

If you have worked on subsidised pay, 75% of that work can be taken into account in the calculation of the employment requirement. In order to satisfy the 26-week employment requirement, you therefore need to have worked on subsidised pay for at least 35 weeks. Example Your subsidised work began on 1 January 2024 and ends on 31 August 2024. Since your subsidised work began before 2 September 2024, it counts 75 percent towards the employment condition. You have worked at least 18 hours per week for 35 weeks, which is about 8 months, thus meeting the employment requirement.  

Employment with wage subsidy commenced after 1 September 2024

Subsidised work will not count towards the employment requirement if the employment begins on or after 2 September 2024. Subsidised work extends the review period of the employment requirement, which is normally 28 months, by the entire duration of the subsidised employment. Exceptionally, part of the subsidised work can still count towards the employment requirement, if the wage subsidy is granted for the employment of a person with reduced working capacity or for the employment of a person who has been unemployed for a long time and is 60 years old or older. In such a situation, the first 10 months of subsidised work do not count towards the employment requirement. If the employment continues to be subsidised after the first 10 months, 75 percent of the continuation of the employment can be counted towards the employment requirement. Example You begin subsidised work on 1 October 2024 and receive a salary of at least 930 euros per month from 1 October 2024 onwards. The subsidy has been granted for the employment of a person with reduced working capacity. For the first 10 months, from 1 October 2024 to 31 July 2025, employment requirement accrues. If your subsidised work continues after this period, 75 per cent of the employment starts to count towards satisfying the employment requirement from 1 August 2025 onwards.  

Employment obligation

If you were provided subsidised work on the basis of the obligation to employ elderly people, 100% of your subsidised work counts towards the employment requirement. This means that while you are in obligation work, all employment requirement weeks can count towards your employment requirement. If you are aged 60 or above and subject to the employment obligation, periods during which you were enrolled in services that promote employment on the basis of the employment obligation can be taken into account in the calculation of the employment requirement. Example 1 You work based on employment obligation from 12th February to 11th August 2024, i.e., 26 calendar weeks. Your working hours are at least 18 hours per week, so all calendar weeks can be counted towards the employment requirement. Your employment requirement is fulfilled on 11th August 2024. Example 2 You work based on employment obligation from 1st September 2024 to 28th February 2025, i.e., 6 calendar months. You receive a monthly salary of €2,000, paid on the last day of each month. Thus, each month accrues towards the employment requirement. The length of your employment requirement is six employment requirement months, so your employment requirement is fulfilled on 28th February 2025. Subsidised work or service that promote employment based on employment obligation can be provided only if the employment authority’s obligation to arrange the work or service arises no later than 1st September 2024. You can read more about employment obligation on the page Exceptions for persons aged 55 and over under the Employment obligation.  

Absences from the labour market

If you leave the labour market for a period of more than six months without an acceptable reason, you will be deemed to no longer satisfy the employment requirement. You will need to resatisfy the employment requirement to qualify for an earnings-related allowance. In addition to working and running a business, you are also deemed to be ‘in the labour market’ if you are

• registered as an unemployed job-seeker with the TE Office
• a full-time student
• on maternity, paternity, pregnancy or parental leave
• at home caring for a child up to 3 years old
• off sick or in rehabilitation
• on alternation leave or
• enrolled in a service that promotes employment

Make sure not to be absent from the labour market for more than six months if your employer gives you financial compensation when they terminate your employment (e.g. a severance package).  

Employment requirement of family members of an entrepreneur

Following a legislative amendment that entered into force on 1 July 2019, working for a business owned by your family member now also counts towards the employment requirement. You will satisfy the employment requirement if you work for at least 52 calendar weeks during the 28-month review period for a business owned by a member of your family. To satisfy the employment requirement, you must not have any ownership in or control over the business yourself, and you must not have an obligation to make contributions to a self-employed person’s pension or a farmer’s pension. The employment requirement of 52 calendar weeks of work for your family member’s business and the regular employment requirement cannot be combined. If you satisfy both employment requirements, you will need to choose yourself which one to use as the basis for your earnings-related allowance. The amendment applies to work performed while being a member of a wage-earners’ unemployment fund after the entry into force of the new provisions. You must also have been a member of a wage-earners’ unemployment fund for a period of at least 12 months.