Activation model for unemployment security
The activity of persons receiving unemployment security is reviewed in 65 benefit payment days periods. This equates to about three months of continuous unemployment. According to Prime Minister Rinne’s Government Programme, the cuttings and obligations of the activation model will be dismantled, when measures with corresponding employment impacts have been decided. The preparations are underway.
The amount of unemployment benefit will not be reduced if, during the period of 65 benefit payment days, the jobseeker:
1) works for a total number of hours that is at least equivalent to the calendar-week work requirement for an employee to be entitled to basic unemployment allowance, i.e. 18 hours of paid work, where the pay is in accordance with the applicable collective agreement. Under the activation model, it is sufficient that these 18 hours are accumulated over the entire period of 65 benefit payment days. In some sectors, a smaller number of hours is sufficient (e.g. teaching in educational establishments) or the work requirement is accumulated on the basis of earned income (e.g. employment in artistic and creative fields).
In the activation model, the 18-hour minimum requirement regarding paid work can be accumulated in any number of ways, for example by working six hours for three consecutive days, nine hours on each of two consecutive days,or just a short time on many different days over the period. The hours may be worked for the same employer or for two or more different employers. The work performed can be on weekdays or at weekends; or
2) earns in self-employment a total of at least 23 per cent of the monthly earnings requirement for a self-employed person to be entitled to basic unemployment allowance. Within the activation model this means that in 2018 the activation requirement is met if the jobseeker earns at least EUR 241.04 in self-employment over the period of 65 benefit payment days; or
3) participates in five days of employment-promoting services agreed with the Employment and Economic Development Office (TE Office). These employment-promoting services include labour market training, self-motivated study and work trials. More information about employment-promoting services and how to apply for them can be obtained from any TE Office. Information is also available via the following link; Services that promote employment and expense allowance
4) participates in five days of other services or activities organised by the employment authorities aimed at improving jobseeker employment prospects. Such services or activities must be comparable to the employment-promoting services described in point 3 above. They may be, for example, training in vocational and career choice options or practical work training; or
5) participates in five days of other recruitment-supporting activity in the workplace or connected with employment promotion, during which time he or she is paid unemployment benefit. More detailed provisions on these measures are given in the Government Decree on the Implementation of the Unemployment Security Act. The measures concern recruitment trials or recruitment training during which the jobseeker has the right to unemployment benefit.
If the jobseeker satisfies the activation requirements, the payment of unemployment benefit will continue unchanged. If the activation requirements have not been satisfied, the unemployment benefit will be reduced by 4.65 per cent for the duration of the next period of 65 benefit payment days, following which it will return to normal if the jobseeker has been sufficiently active. The financial impact of the 4.65 per cent reduction is equivalent to having a waiting period of one day per month. The deduction is made from the jobseeker's unemployment benefit, whether this is earnings-related unemployment allowance, labour market support or basic unemployment allowance.
The amount of unemployment benefit will also return to its normal level in cases where the benefit recipient has started to receive the reduced amount of benefit but then:
1) becomes employed full time in paid work for an interrupted period of more than two weeks, before returning to be a benefit recipient again; or
2) becomes self-employed on a full-time basis for an interrupted period of more than two weeks, before returning to be a benefit recipient again; or
3) becomes partially employed and no adjusted unemployment benefit is payable for the application period on account of income from employment or the time employed, after which he or she returns to being a benefit recipient again; or
4) becomes an unemployment benefit recipient again after the TE Office, in a written statement, has imposed a period without benefit, or after the end of a duty-to-work period. This avoids the possibility of two sanctions being applicable at the same time.
The amount of unemployment benefit will also return to normal if it was being paid in reduced form and the benefit recipient meets the work requirement again. At the same time, the maximum period of payment that applies to the daily unemployment allowance will be restarted from the beginning.
The reduction in unemployment benefit is always 4.65 per cent, even if the person repeatedly fails to meet the activation requirement. The reduction is not cumulative.