Unemployment security

The Ministry of Social Affairs and Health is responsible for developing and preparing the legislation concerning income security for the unemployed.

Basic income is secured for unemployed jobseekers through unemployment allowance or labour market subsidy. There are two types of unemployment allowance: basic unemployment allowance and earnings-related unemployment allowance.

Unemployed people can receive basic or earnings-related unemployment allowance or labour market support

Unemployed jobseekers can receive basic unemployment allowance from the Social Insurance Institution of Finland (Kela) or earnings-related unemployment allowance from their unemployment fund. The grounds for receiving basic or earnings-related unemployment allowance are otherwise the same but the unemployed person needs to be a member of an unemployment fund to receive earnings-related allowance.

Unemployed people are eligible for unemployment allowance if they

• live in Finland
• have registered as unemployed jobseekers with the employment services 
• are seeking full-time work
• are able to work and prepared to accept a job
• meet the prior work requirement, which means that 
  • they have been in paid employment for at least 26 weeks during the 28 months preceding the unemployment (as wage or salary earners) or
  • they have been self-employed for at least 15 months during the 48 months preceding the unemployment and the business activities have been substantial in terms of their extent.

As a rule, unemployment benefits are not granted to jobseekers who have not yet reached the age of 18. However, unemployment benefits can be granted to those jobseekers who have turned 17 and completed compulsory education. Jobseekers born before 1965 can be granted an unemployment benefit at most until the end of the calender month when they turn 65. For those born in 1965 or later, an unemployment benefit can be granted at most until the end of the calender month when they reach the minimum age for old-age pension referred to in section 11 of the Employees Pensions Act (395/2006).

Payment of unemployment allowance starts after the person has been registered as an unemployed jobseeker with the employment services  for five working days (waiting period).

The duration of the unemployment allowance depends on the person’s employment history. If the employment history is no longer than three years, the maximum payment period of the unemployment allowance is 300 days. If the employment history is longer than three years, the maximum payment period is 400 days. However, the unemployment allowance is payable for a maximum of 500 days for unemployed persons who have met the work requirement after reaching the age of 58 years and have an employment history of at least five years. In addition, those unemployed persons born before 1965 who meet the work requirement are eligible for additional days of unemployment allowance.

The right to additional days applies to unemployed persons who were born

• between 1957 and 1960 and turn  61 before the end of the maximum period for receiving unemployment allowance
• in 1961 or 1962 and turn  62 before the end of the maximum period for receiving unemployment allowance.
• in 1963 and turn  63 before the end of the maximum period for receiving unemployment allowance
• in 1964 and turn  64 before the end of the maximum period for receiving unemployment allowance.

A further requirement is that the person has worked for at least five years over the past 20 years.

If an unemployed person has received unemployment allowance for the maximum period or does not meet the prior work requirement for unemployment security, they may receive labour market support.

• Right to unemployment benefits (Kela)Link to an external websiteOpens in a new tab

Adjusted unemployment benefit

If a person works part-time or only occasionally during their unemployment period, their unemployment allowance or labour market support will be adjusted to take into account their earnings. A sum corresponding to a half of the earnings will be reduced from the unemployment benefit.

You can estimate the amount of adjusted unemployment benefit here:

• The Federation of Unemployment Funds in Finland (TYJ)Link to an external websiteOpens in a new tab
• Calculators (Kela) (in Finnish)Link to an external websiteOpens in a new tab

Unemployment benefits can be applied for at unemployment funds or Kela

Earnings-related unemployment allowance can be applied for at the unemployment fund where the unemployed person is a member. Basic unemployment allowance can be applied for at Kela. You can ask for more information about unemployment benefits from Kela or your own unemployment fund. Information is also available on the websites of your unemployment fund, the Federation of Unemployment Funds TYJ or the Social Insurance Institution, Kela..

• The Federation of Unemployment Funds in Finland (TYJ)Link to an external websiteOpens in a new tab
• Unemployment (Kela)Link to an external websiteOpens in a new tab

Appealing against decisions on unemployment benefits

An unemployment benefit decision always includes instructions how to appeal. Both Kela’s and unemployment funds’ decisions can be appealed to the Unemployment Security Appeal Board.

The Ministry of Social Affairs and Health does not process appeals, objections or complaints.

• Appealing income security decisions