Background information

As a result of the COVID-19 crisis, the number of unemployed has rapidly increased in Finland. Many recipients of unemployment benefits work occasionally and therefore combine unemployment benefit with a salary. A recipient of unemployment benefits can earn a certain amount without it affecting the benefits. If the monthly salary exceeds this exempt amount (in Finnish ‘työttömyysetuuden suojaosa’), the unemployment benefit is reduced.

With the aim of supporting people who have become unemployed as a result of the COVID-19 crisis and facilitate combining work and unemployment benefits, the Government decided to increase the exempt amount.

The legal basis of this measure is Act 492/2020 that amends the Act on temporary exceptions to unemployment security as a result of the COVID-19 pandemic (free translation) (in Finnish ‘Laki väliaikaisista poikkeuksista työttömyysturvalakiin COVID-19-epidemian vuoksi annetun lain muuttamisesta 429/2020).

Content of measure

In normal circumstances, the exempt amount is €300 per month. It has been temporarily raised to €465 (gross amount) for those recipients whose unemployment benefit is paid out every four weeks and €500 in case the benefit is paid on a monthly basis.

This measure covers all unemployed job-seekers who are entitled to unemployment benefits (labour market subsidy or earnings-based and basic unemployment allowance).

There is no information about the total budget but the Government estimated in its proposal (HE 14/2021) (in Finnish) that the extending the duration of this measure by three months in 2021 leads to an additional cost of approximately €19 million.

This duration of this measure has been extended several times.

Use of measure

No information available.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Unknown	Unknown

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

According to the Government proposal (HE 78/2020), the Government consulted the peak-level social partners and other key stakeholders during the design phase of this measure.

The social partners are not involved in the implementation or monitoring of this measure.

Views and reactions

Akava, a peak-level social partner representing employees with academic education, welcomed this measure in May 2020. However, they argued their involvement in the design phase of this measure was too limited.

Sources

• 20 May 2020: Government Proposal HE 28/2020 [Hallituksen esitys HE 78/2020 vp] (www.eduskunta.fi)
• 17 March 2021: Unemployment benefit in the coronavirus situation (www.kela.fi)
• 18 May 2021: Akava's statement regarding Government proposal to amend the law on temporary exceptions to the Unemployment Security Act due to the Covid-19 epidemic [Akavan lausunto HE laiksi väliaikaisista poikkeuksista työttömyysturvalakiin Covid-19 -epidemian vuoksi annetun lain muuttamisesta] (akava.fi)
• 31 May 2021: Changes in unemployment insurance will continue until 30 September 2021 (www.kela.fi)