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Government proposes to raise exempt amount of unemployment benefit and amend temporarily the conditions for relocation allowance

Ministry of Social Affairs and Health 20.5.2020 13.32
Press release 125/2020

The Government proposes a temporary increase in the exempt amount of the unemployment benefit. Eligibility for commuting and relocation allowance for full-time work would be amended temporarily by decreasing the distance required for daily commuting.

The Government proposes to amend the act on temporary derogations from the Unemployment Security Act due to the coronavirus epidemic. 

The aim is to improve the financial security of unemployed persons when they take part-time work or other short-term work in a situation where full-time work is not yet available. 

Another aim is to help people find full-time work or seasonal work critical for agriculture.

Increase in the exempt amount of unemployment security

The Government proposes a temporary increase in the exempt amount of the adjusted unemployment benefit. 

The aim is provide financial support to help people find part-time work or other short-term work in agriculture and horticulture enterprises or elsewhere. The raised exempt amount would also apply to income from self-employment. Moreover, the amendment would apply to unemployed jobseekers who already receive adjusted unemployment benefit. 

The exempt amount means the amount unemployed jobseekers can earn without an effect on their unemployment benefit.

The Government proposes that the exempt amount be raised temporarily from the current EUR 300 to EUR 500 per month (i.e., from EUR 279 to EUR 465 per four calendar weeks). 

Shorter daily commuting distance for commuting and relocation allowance

The Government proposes that the commuting and relocation allowance be available to persons whose daily commute at the start of employment takes at least two hours instead of the three hours currently required. The allowance could also be paid to persons who move because of a job a distance comparable to the daily commuting requirement. 

The aim is to increase regional mobility to help people find full-time work. The amendment applies to both seasonal work in agricultural and horticultural enterprises and other full-time work. 

The amendment would enter into force as soon as possible and remain in force until 31 October 2020.

Inquiries:

Marjaana Maisonlahti, Senior Ministerial Adviser, tel. +358 295 163 288 (not available on Friday 22 May)
Juho Orjala, Special Adviser to Minister Pekonen, tel. +358 295 163 424
Joni Rehunen, Senior Specialist, tel. +358 295 163 435

Read more about adjusted unemployment benefits on the website of the Social Insurance Institution of Finland (Kela).

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