This is how you apply for earnings-related daily allowance if you are laid off or become unemployed
Due to the corona situation, many restaurant workers will continue to be affected by continued restaurant restrictions and possible renewed restrictions. Therefore, when layoffs or unemployment hit your way, it is important to know how to apply for earnings-related daily allowance in a new life situation.
Who can receive earnings-related daily allowance?
The Unemployment Fund for service sector employees pays its eligible member earnings-related daily allowance for the period of unemployment. You are entitled to earnings-related daily allowance if you are aged between 17 and 64 (the laid-off can be paid up to the age of 67), unemployed but able to work, fulfilled the employment condition as a member and registered as a jobseeker at the local TE Office.
You can receive earnings-related daily allowance if you are unemployed, laid off, part-time entrepreneur as a side job. Part-time workers are paid adjusted daily allowance.
You must be a member of the Unemployment Fund for at least six months. The employment condition is met if you have worked for at least 26 weeks (six months) in the recent two years and four months before unemployment. All working weeks of at least 18 hours completed during the membership period are accepted as a working week. The salary earned must be in accordance with the collective agreement.
How to apply for earnings-related daily allowance?
If you become unemployed or laid off, follow these steps:
1. Register with the local TE Office as a jobseeker no later than on the first day of unemployment. You can find the offices on the TE Services website.
2. Fill in the application form for daily allowance. The electronic application can be submitted on the Unemployment Fund's online service. See instructions for filling in the application here. Application forms can be obtained by printing out on the Forms and attachment's webpage or by contacting the Fund's customer service and order them by post.
3. Obtain the necessary attachments to the application. Further instructions can be found on this page as well as in the application form. Ask the Unemployment Fund if you are unsure about the necessary attachments.
4. Send the application to the Unemployment Fund. Always send paper applications to this address: PAM Unemployment Fund, PL 93, 00531 HELSINKI.
How much earnings-related daily allowance is paid?
The earnings-related daily allowance is paid for a maximum of 400 days and five days a week. A deductible of five full working days is taken before payment. The deductible period must be fulfilled during eight consecutive calendar weeks. The maximum payment period for earnings-related daily allowance is 300 days if you have a work history of less than 3 years. The maximum pay period is 500 days if you have met the employment condition after reaching the age of 58 and have worked for five years in the previous 20 years.
The maximum payment period starts from the beginning when you meet the employment condition again. The condition is met again after you have worked for 26 weeks during two years and four months. All working weeks of at least 18 hours are accepted as a working week. The amount of the earnings-related daily allowance is determined from the taxable earned income for the weeks that meet the employment condition. The earnings-related daily allowance must be applied for within three months of the time for which the application is made.
Also check out Frequently Asked Questions about earnings-related daily allowance here (in Finnish).