Customer at the Helsinki Employment Service Center in the Pasila Employment Office. LEHTIKUVA
- Next Article Finland boosts child benefits in 2024: Enhanced support for larger families and single parents
The Finnish Parliament has passed a series of reforms affecting unemployment benefits that will be rolled out throughout 2024. These changes, encompassing cuts to basic unemployment allowances, labour market subsidies, and the general housing allowance, will impact the way benefits are calculated and distributed.
From 1 January 2024, the waiting period before an individual can start receiving unemployment benefits will be extended from five to seven days.
Additionally, the end-of-service holiday compensation will now affect the start of benefit entitlement, with the compensation amount divided by the individual’s average daily wage to determine the delay in benefit commencement.
In a significant move, the 300-euro monthly exempt amount, which allowed benefit recipients to earn without reducing their unemployment benefits, will be removed for periods starting on or after 1 April 2024. This means that every euro earned will reduce the unemployment benefit by 50 cents, significantly impacting those with part-time jobs or occasional work.
The child increases supplementing unemployment benefits, paid for each child under 18, will be discontinued from 1 April 2024. This change coincides with scheduled increases in child benefits as part of a broader family policy package approved by Parliament.
The work requirement for employees will be extended from six months to 12 months, with the changes taking effect on 2 September 2024. The requirement will now be based on wage income, with earnings of at least EUR 930 per month counting as one full month towards meeting the work requirement.
Despite these changes, no increases to unemployment benefits are planned for 2024. The labour market subsidy and basic unemployment allowance will remain at EUR 37.21 per day, with the supplementary amount fixed at EUR 5.29 per day. The additional 20 percent increase to child increases for unemployment benefits, a temporary measure for 2023, will expire at the end of the year.
These adjustments are part of a broader effort to streamline Finland’s unemployment benefit system, reflecting the government’s ongoing reassessment of social security expenditures and policies.
HT
- Next Article Finland boosts child benefits in 2024: Enhanced support for larger families and single parents
Source: www.helsinkitimes.fi
