Background information

As a result of the COVID-19 crisis, the unemployment rate 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.

To support people who have been laid off as a result of the COVID-19 pandemic and facilitate the combining of work and unemployment benefits, the government decided to increase the exempt amount.

The legal basis of this measure is Act 492/2020 which 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 for benefit that 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 (HE 14/2021) (in Finnish) that extending the duration of this measure by three months in 2021 will cost approximately €19 million.

The 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)
• 09 September 2021: Työttömyysturvapoikkeuksia esitetään jatkettavaksi 30.11.2021 asti [Unemployment security exemptions are proposed to be extended until 30 November 2021] (stm.fi)