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15.05.2024 16:04

These cuts to unemployment security come into force in September

The Orpo-Purra government has made several cuts to unemployment benefits and earnings-related allowance. The next set of legislative changes will be implemented from the beginning of September, when the work requirement for earnings-related allowance will be extended and the accumulation of the work requirement will become income based. And even more cuts are planned.

Work requirement extended to 12 months

The work requirement that entitles to earnings-related allowance will be extended from the current 6 months to 12 months. In future, you must work for 12 months during a 28-month review period before being eligible for earnings-related allowance. The work requirement must be accumulated while you are a member of an unemployment fund.

Work requirement becomes income-based

At the same time, the work requirement becomes income-based, i.e. the work condition is “euroized”. Currently, the work requirement is accumulated from calendar weeks during which there have been at least 18 hours of paid working time. After the legislative change, the work requirement will be accumulated for months when you have earned at least 930 euros while being a member of an unemployment fund. The work condition can also be accumulated in periods lasting half a month.

More legislative changes currently debated in Parliament

In addition to the approved amendments, the government has also proposed staggering of earnings-related allowance, discontinuation of the age-related exceptions and that working with pay subsidies would no longer accumulate the work requirement. Parliament has not yet decided on these.

More information on the legislative changes that come into force in September on the PAM Unemployment Fund’s website

Many benefits have already been cut

Parliament has already approved cuts to unemployment and housing benefits that take up to hundreds of euros per month from part-time and unemployed workers in services sectors. The implementation of the first changes began in January and in April.

PAM has opposed all Orpo-Purra Government’s cuts to unemployment security, because they target many part-time workers in services sectors such as sales assistants, waiters, chefs and cleaners. PAM has since last Autumn campaigned against the unemployment security cuts through the Onko parempia leikkauskohteita campaign and the #SeriousGrounds campaign together with SAK affiliated unions.

On the PAM Unemployment Fund’s webpage Legislative Changes 2024 section you find up-to-date information on all approved and proposed legislative changes and their timetables.