The protection for income in adjusted daily allowance is increased and the time limit for mobility allowance is reduced
Yesterday, The Finnish Parliament approved amendments to the Unemployment Security Act with the aim to support taking up employment and the financial situation of the beneficiaries.
The protection for income in adjusted daily allowance for unemployment will be increased from EUR 300 to EUR 500 in one month or from EUR 279 to EUR 465 in four (4) calendar weeks. The protection for income refers to the component of pay that does not decrease the earnings-related daily allowance. In practice, this means that a person receiving earnings-related daily allowance can earn EUR 500 a month by working for example part time or on-demand without losing his or her unemployment benefits. A salary income that exceeds EUR 500 reduces daily allowance by 50 cents per 1 euro.
The new protection for income is applied on application periods starting from 1 June 2020. The change is effective until November 1 after which the old protection for income of EUR 300 will be applied again.
The second change concerns the mobility allowance. It can be granted to a person who is entitled to earnings-related daily allowance and takes a job that is far away from where (s)he currently lives. In the future, the allowance can be granted if the trip to work and back takes two (2) hours. The change applies to full-time work where it previously required three (3) hours to receive the allowance.
The two-hour trip rule applies to job contracts that are signed after the law has entered into force and prior to 1 November 2020.