Unemployment security
In brief
- Unemployment security consists of a general social security benefit and an earnings-related unemployment allowance.
- In order to be eligible for unemployment security, you must register with the employment authority as a jobseeker looking for full-time work.
- Applications for the general social security benefit must be addressed to the Social Insurance Institution of Finland (Kela).
The Ministry of Social Affairs and Health is responsible for drafting and further developing the legislation on unemployment security.
The income security of unemployed jobseekers is secured through the earnings-related unemployment allowance or the general social security benefit.
Unemployed persons can receive general social security benefit or earnings-related unemployment allowance
Unemployed jobseekers can receive basic unemployment allowance from 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 unemployment allowance.
Conditions for receiving unemployment allowance
Unemployed jobseekers can receive either the general social security benefit from Kela or the earnings-related unemployment allowance from their unemployment fund.
They may be eligible for unemployment security 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.
The earnings-related unemployment allowance can be paid to unemployed jobseekers who meet the prior work requirement and are members of an unemployment fund.
The general social security benefit, in turn, can be paid to unemployed jobseekers who are not eligible for earnings-related unemployment allowance or who have received earnings-related unemployment allowance from their unemployment fund for the maximum period of time.
As a rule, unemployment security benefits are not granted to jobseekers who are under the age of 18.
Jobseekers born before 1965 can be granted an unemployment security benefit at most until the end of the calendar month when they turn 65. For those born in 1965 or later, an unemployment security benefit can be granted at most until the end of the calendar month when they reach the minimum age for old-age pension referred to in section 11 of the Employees Pensions Act (395/2006).
Duration of unemployment security
The duration of the earnings-related unemployment allowance depends on the person’s employment history. If the employment history is no longer than three years, the maximum payment period for the allowance is 300 days. If the employment history is longer than three years, the maximum payment period is 400 days.
However, the earnings-related unemployment allowance is payable for a maximum of 500 days for unemployed persons who, on reaching the age of 58, fulfil the work requirement and who have an employment history of at least five years.
In addition, unemployed persons born before 1965 may be eligible for additional days of earnings-related unemployment allowance.
There is no maximum payment period for the general social security benefit.
Labour market subsidy in situations where unemployment allowance is not paid
If an unemployed jobseeker has received unemployment allowance for the maximum period or does not meet the prior work requirement for unemployment security, they may receive labour market subsidy.
Adjusted unemployment security benefit
If a person works part-time or only occasionally during their unemployment, their earnings-related unemployment allowance or general social security benefit will be adjusted to take into account their earnings. The adjustment aims to ensure that working is always the more profitable option. The adjustment of unemployment security means that every euro earned reduces the unemployment benefit by 50 cents.
You can estimate the amount of your adjusted unemployment security benefit here:
How to apply for unemployment benefits from an unemployment fund or Kela
You can apply for the earnings-related unemployment allowance from your unemployment fund. Applications for the general social security benefit must be addressed to Kela.
How to appeal against decisions on unemployment security benefits
A decision on an unemployment security benefit always includes instructions on how to request a review. A request for review of a decision issued by Kela or an unemployment fund may be made to the Social Security Appeal Board.
The Ministry of Social Affairs and Health does not process requests for review, objections or appeals.
Further information
Kirsi Päivänsalo, Ministerial Adviser
Ministry of Social Affairs and Health, Department for Insurance and Social Security / SVO, Benefits Unit / ETU Telephone:0295163195 Email Address: [email protected]
Marjaana Maisonlahti, Senior Ministerial Adviser
Ministry of Social Affairs and Health, Department for Insurance and Social Security / SVO, Benefits Unit / ETU Telephone:0295163288 Email Address: [email protected]