Increased components of allowances to be discontinued on 1 January 2025

The Finnish Government has proposed to discontinue the payment of the increased component of the earnings-related unemployment allowance to persons participating in employment-promoting services from 1 January 2025 onwards. Increased components could still be paid next year if the employment-promoting service started in 2024.

According to the proposal, increased mobility allowances would also be discontinued on 1 January 2025. The mobility allowance is paid to unemployed persons who accept a job further away from their current place of residence. An increased mobility allowance can be granted if the workplace is more than 200 kilometres away.

How the changes would be implemented

  • If you started participating in an employment-promoting service before or on 31 December 2024, you could still receive the increased component after the new law’s entry into force until the end of the service, but only for a maximum of 200 days.
  • If the service is arranged as separate, non-continuous segments, no increased component or increased earnings-related component would be paid for any service periods starting on or after 1 January 2025.
  • The increased mobility allowance could still be paid if the job or job-related training started before or on 31 December 2024.

Examples of how the change might affect you:

Salary before unemployment / month Increased earnings-related unemployment allowance / month Difference after discontinuation of increased component / month
3 000 € 1 948 € – 209 €
4 000 € 2 383 € – 289 €
5 000 € 2 624 € – 337 €

The table shows gross amounts. Earnings-related unemployment allowance is taxable income.

More information:

Government Proposal: HE 135/2024