Unemployment benefit

During periods of unemployment a worker may be eligible for earnings-related unemployment benefit, a basic unemployment allowance, or labour market subsidy.

An earnings-linked per diem allowance is paid to jobseekers belonging to an unemployment fund. Other employees receive a basic unemployment allowance from the Social Insurance Institution of Finland (Kela).

Earnings-linked unemployment benefit and basic unemployment allowance are paid to unemployed workers who have worked for six months over the preceding 28 months. A jobseeker who fails to satisfy this condition or who has received unemployment benefit for the maximum period of 400 or 300 days is eligible for labour market subsidy from Kela.

Enrolment as an unemployed jobseeker at an Public employment and business office (TE office) is an absolute condition of receiving unemployment benefits. Employees who have been laid off are generally also entitled to unemployment benefits.

The earnings-linked per diem allowance is about 50 – 70 per cent of regular average wages. The basic unemployment allowance varies from year to year. All unemployment benefits include a supplement for dependent children varying according to the number of children supported.

Unemployment benefit is taxable income.

Read more about unemployment benefits on TE services website.