Unemployment security

The Ministry of Social Affairs and Health is responsible for preparing and further developing the legislation on unemployment security.

Income security for unemployed jobseekers is ensured 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 subsidy

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 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 calendar 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 calendar 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).

Duration and additional days of unemployment allowance 

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 can receive unemployment allowance for additional days.

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 of unemployment allowance
• in 1961 or 1962 and turn 62 before the end of the maximum period of unemployment allowance
• in 1963 and turn 63 before the end of the maximum period of unemployment allowance
• in 1964 and turn 64 before the end of the maximum period of unemployment allowance.

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

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.

• Labour market subsidy (Kela)Link to an external website

Adjusted unemployment benefit

If a person works part-time or only occasionally during their unemployment period, their unemployment allowance or labour market subsidy 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 your adjusted unemployment benefit here:

• If you become unemployed (TYJ)Link to an external website
• Calculators (Kela)Link to an external website

How to apply for unemployment benefits from an unemployment fund or Kela

You can apply for earnings-related unemployment allowance from the unemployment fund of which you are a member. Applications for basic unemployment allowance and labour market subsidy should be addressed to 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 Kela. 

• Federation of Unemployment Funds in FinlandLink to an external website
• Unemployment (Kela)Link to an external website

Appealing against decisions on unemployment benefits

An unemployment benefit decision always includes instructions on how to appeal against it. 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.

• Appealing income security decisions