Recalculation of earnings-related daily allowance and “resetting” of days

The maximum period for the payment of earnings-related daily allowance is usually 400 days. The days of earnings-related daily allowance payment are reset and the payment period restarts after you have worked at least 12 months. The working months must be accumulated within a period of 28 months.  

Days of earnings-related daily allowance payment are always reset after meeting the 12-month working condition and the maximum period starts over, even if the maximum period has not been reached. The waiting period is also always set when the employment condition is met.

Days of daily allowance payment can be reset with occasional work as long as the employment condition is met within a 28-month review period. The employment condition is met for each calendar month in which a salary of at least 930 euros has been paid. If a salary of at least 465 euros but less than 930 euros has been paid, a half employment condition month is fulfilled. Two half employment condition months make up one full employment condition month. If the employment condition is fully met with jobs where the salary is at least 465 euros but less than 930 euros per month, the employment condition is met in 24 months. 

The 80-percent rule protects the amount of daily allowance

A rule of protection is applied to the recalculation of earnings-related daily allowance if you have previously received the allowance. This means that the full rate of your new earnings-related daily allowance is at least 80 percent of your previous full earnings-related daily allowance. The protection is applied if you meet the 12-month working condition before reaching the maximum period of daily allowance. The protection does not apply if you reach the maximum period of daily allowance before you meet the working condition.

The protection also does not apply if the payment of daily allowance has never started. For example, if you receive severance pay corresponding to 13 months’ salary when your employment is terminated, unemployment allowance is not paid for the period affected by the severance pay (approximately 13 months). If you become employed during the severance pay deferral period or immediately after and your employment lasts at least 12 months you meet the working condition again. In such case, the rate of earnings-related daily allowance is calculated from the work from which you have met the new 12-month working condtition and the 80 percent protection does not apply to the rate of daily allowance.         

The comparison used for the protection is always carried out with the earnings-related daily allowance of a fully unemployed person.

The protection only applies to full earnings-related daily allowance. If you receive adjusted daily allowance, the rate of your earnings-related daily allowance may be reduced by more than 20 percent, because other rules also apply to calculating adjusted daily allowance.

Employment obligation

The law regarding the employment obligation has been repealed, but it still applies if the job seeker is at least 57 years old and the employment obligation arose no later than 1.9.2024. If you have been employed based on the employment obligation, the length of the employment condition is exceptionally 6 months. The earnings-related daily allowance is also not recalculated after work arranged based on the employment obligation if the salary on which the allowance is based does not increase compared to the previous base salary.

If you have been employed based on the employment obligation, for example, for the period 15.7.2024–14.1.2025, the employment condition is reviewed as follows: For the period 15.7.–1.9.2024, it is calculated how many weeks of at least 18 hours of work you have had. If you have regularly worked at least 18 hours per week without unpaid absences, you accumulate 7 employment condition weeks. These are converted into employment condition months, resulting in 2 employment condition months (7/4 = 1,75, rounded to 2). The employment condition is reviewed from 2.9.2024 based on salary. If you have received a salary of at least 930 euros per month, and it has been paid in the same month it was earned, you have accumulated 4 employment condition months for the period 2.9.–31.12.2024. If you have received a salary of at least 465 euros but less than 930 euros for January (1.1.–14.1.2025), you have accumulated one half employment condition month. Thus, for the employment period, you have accumulated a total of 6.5 employment condition months, so the employment condition is met.

The protection for the level of the daily allowance for those aged 58 and over has been removed

Previously, the level of the daily allowance for job seekers aged 58 and over was not recalculated after the employment condition was met, unless it had increased. This exception has now been removed from the law. The level of the daily allowance is always recalculated once the employment condition is met. If the daily allowance has not been paid for the maximum period, the new full daily allowance is at least 80% of the previous full daily allowance. Work arranged based on the employment obligation is an exception (see previous section).

Daily allowance days are not reset, and the level of the daily allowance is not recalculated on additional days. The resetting of daily allowance days is not done if you are already on additional days (unemployment path to retirement). This means that the level of the daily allowance is no longer recalculated, even if you are working and meet the employment condition. The level of the daily allowance is “locked” at the point when the first additional day is paid. If the daily allowance has been reduced (staggered), the payment continues at the reduced level throughout the period of additional days.

Daily allowance days are not reset, and the level of the daily allowance is not recalculated during additional days 

The resetting of daily allowance days is not done if you are already paid additional days (unemployment path to retirement). This means that the level of the daily allowance is no longer recalculated, even if you are working and meet the employment condition. The level of the daily allowance is “locked” at the point when the first additional day is paid. If the daily allowance has been reduced (staggered), the payment continues at the reduced level throughout the period of additional days.