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The effects of the staggering will begin to show in November
As a result of the legislative amendment that came into force at the beginning of September, the first effects of the staggering of earnings-related allowance will become visible to recipients in November. By then, the first individuals subject to the reduction will have accumulated 40 benefit days. For those in partial employment, the reduction will take effect slightly later than for others. This is because the accumulation of benefit days be slower for those working part-time.
Staggering of the earnings-related allowance means that the amount of the allowance decreases as the period of unemployment extends. The full allowance is paid for the first 40 days, after which it is reduced to 80 percent. Once the allowance has been paid for 170 days, it drops to 75 percent of the original amount.
The earnings-related allowance will be recalculated when the 12-calendar-month employment requirement fulfil again. At that point, your earnings-related allowance will return to the 100% level.
You can estimate the amount of your earnings-related allowance after the reduction using our daily allowance calculator.
Who does the staggering affect?
The reduction applies to those who meet the employment condition after 1 September 2024 and whose employment condition is 12 months long. It applies to everyone receiving earnings-related allowance, including the unemployed, part-time entrepreneurs, those laid off, those participating in services promoting employment, and those in part-time work.
Thus, the staggering does not affect you if:
- The maximum period for your earnings-related allowance (300, 400, or 500 days) has started before 2 September 2024
- Your 26-week employment requirement is met by 1 September 2024
- Your employment requirement includes work with wage subsidies that started by 1 September 2024
- Your employment requirement includes work or employment-promoting service arranged under an employment obligation and where the obligation arose by 1 September 2024.
In these situations, the staggering will be applied when the employment requirement is met again after 1 September 2024 and the employment requirement is 12 months.
For more information on the graduated reduction, please visit the page Amount of the earnings-related allowance.
