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Applications for earnings-related allowance affected by annual leave
With the summer holiday season having started, many laid off and partially employed people might have questions about how annual leave and holiday bonuses affect earnings-related allowance and applying for it.
We have collected information below on the impact of annual leave on earnings-related allowance, as well as instructions on how to apply for earnings allowance during the holiday period.
Register as a job seeker with the TE Office services
If you have been partially laid off or are working part-time, make sure you are registered as a job seeker with the TE Office services also during your annual leave. You can be paid an earnings-related allowance only if you are registered as a job seeker with the TE Office.
Annual leave of persons laid off from full-time work
A person laid off from full-time work is not entitled to earnings-related allowance for the duration of their annual leave. Holiday bonuses paid by an employer may also prevent the payment of earnings-related allowance. However, holiday bonuses paid for full-time work do not affect the amount of earnings-related allowance.
Although you cannot receive an earnings-related allowance while you are on annual leave, you can fill in your earnings-related allowance application at the usual time and keep your job-seeker status active with the TE services. Make sure to mention your annual leave in your application. For the duration of the annual leave, please fill in your annual leave days in the daily columns of the application by selecting “annual leave”.
Please ensure that your job-seeker status is active after the end of your annual leave so that we can continue to pay the earnings-related allowance.
Annual leave of part-time employees
If you are working part-time, you can apply for adjusted earnings-related allowance for the duration of your annual leave. The annual holiday wages, holiday bonuses and holiday compensation of part-time employees are adjusted in the same way as other wages earned in part-time work.
Those laid off from part-time work may also be entitled to adjusted earnings-related allowance for the duration of their annual leave. The annual holiday wages, holiday bonuses and holiday compensation accumulated from part-time work and paid while laid off are adjusted in the same way as wages earned in part-time work.
If you are on annual leave from part-time work, please fill in your annual leave days in the daily columns of the application by selecting “annual leave”.
If an employment relationship ends, holiday compensation has a postponing effect
As a result of the legislative amendment that came into force at the beginning of 2024, holiday compensation paid upon the end of full-time employment that lasted for more than two weeks will postpone the payment of unemployment allowance. The period that the payment is deemed to cover begins from the end of your employment. This means that compensation paid for unused annual leave postpones the start of eligibility to earnings-related unemployment allowance. For example, holiday compensation equal to one month’s pay postpones the start of your eligibility to earnings-related unemployment allowance by approximately one month.
The postponement period is calculated by the unemployment fund. Therefore, you can submit your earnings-related allowance application in the usual manner starting from the first day of unemployment.
