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Parliament approves temporary relaxation of unemployment security rules
The Parliament of Finland has decided to temporarily relax the rules on unemployment allowances. Thanks to the rule change, unemployment benefits can now be paid from the first day of unemployment and there is no five-day waiting period. In addition, entrepreneurs can now apply for labour market subsidies from the Social Insurance Institution while still running a business.
The temporary rules apply from 1 January until 28 February 2022.
Personal liability period
There is normally a five-day waiting period called a ‘personal liability period’ at the start of unemployment for which unemployment benefits are not payable. The Unemployment Allowances Act has been temporarily amended so that earnings-related allowance payments can now start on the first day of unemployment and there is no five-day waiting period.
The temporary relaxation of the rules applies to applicants whose personal liability period would otherwise begin between 1 January and 28 February 2022.
The normal rules apply to applicants whose personal liability period began in December or earlier, even if some of the wait takes place in January or February. The rule change also benefits applicants who receive earnings-related allowance payments after February as long as their personal liability period began before the expiry of the temporary law.
Retroactive payment of earnings-related allowances for the personal liability period
You may have already received a decision according to which you are subject to a personal liability period starting on or after 1 January 2022. It was not possible for us to pay you an earnings-related allowance for your personal liability period whilst the legislative reform had not yet been enacted. We will now issue a new decision and pay you an earnings-related allowance for your personal liability period retroactively as soon as possible. We will do this automatically, and you do not need to contact us.
Labour market subsidies of entrepreneurs
The law has been changed to allow the Social Insurance Institution (Kela) to pay labour market subsidies to entrepreneurs whose income from running their business has dropped due to the coronavirus pandemic or who no longer work in the business full-time. More information about the labour market subsidies of entrepreneurs is available on Kela’s website.
