Changes to the earnings-related unemployment allowance from 1 April 2019

In future, an application that contains working hours may be processed even if the person’s salary has not yet been paid. The changes will also make it easier to accept part-time work.

If you have part-time work, full-time work lasting up to two weeks, part-time entrepreneurial activity or you have been laid off to work shortened working days, you can also be eligible for an earnings-related unemployment allowance. At present, the income you receive is adjusted according to the time when the work was performed, i.e., in an earnings-based method. On 1 April 2019, a change in legislation will enter into force which will result in the earnings of the work done after 1 April 2019 being taken into account in the daily allowance in accordance with the time when the salary is paid, i.e., on a payment basis.

The aim of the amendment is to balance the impact of unemployment on a person’s livelihood and to decrease the delays in the payment of the earnings-related unemployment allowance when the required information is better available.

The transition from earnings-related adjustment to payment-based adjustment may temporarily delay payment, especially in April and May.

When applying for a daily allowance, the working hours must still be entered in the application in accordance with the time when the work was performed. In future, pay calculations will also become more important because the unemployment fund must know the exact date when the salary is paid. Therefore, please remember to check that the payment date is shown on the payslip you deliver to the unemployment fund.

The adjustment of the daily allowance will therefore be based on taking the income into account in accordance with the time when the salary was paid. Activity will continue to be monitored according to the time when the work is performed, i.e., on an earnings-related basis. Similarly, the employment condition will continue to accrue according to when the work is actually performed. For this reason, you should continue to record the completed working hours in the applications depending on when the work was actually performed, even if the salary would be paid later.

Despite this change, some of the adjustment will still need to be performed according to the earnings-related criteria. The most common case is that you have been laid off to work shortened working weeks, and at the same time, you have received income from part-time work, from full-time work lasting up to two weeks, or from part-time entrepreneurial activity. In this case, the work income you receive will still be taken into consideration in the payment of the daily allowance in accordance with the time when the work was performed, and not when the salary was paid.

Example:

You have started part-time work in April and you have been working for a total of 75 hours. The salary is paid on 15 May. The application for April must be completed in accordance with the realized hours, so you should record the working hours you have completed in April in the application for April. However, the salary will not be taken into consideration in the payment of the daily allowance for April. In May, you work 50 hours and the salary is paid on 15 June. When you apply for daily allowance for May, please fill out the application again in accordance with realized hours, i.e. the working hours you have completed in May. In the payment of the daily allowance for May, the salary for April, which was paid on 15 May, will be taken into consideration in the adjustment. There are no working hours in June, but the salary paid on 15 June will be taken into consideration when adjusting the payment of the daily allowance for June.

Example:

You have started part-time work in April and you have been working for a total of 75 hours. The salary is paid on 30 April. Please mark the working hours completed in April in the application for April. As the salary is paid in April, the income received will be taken into account when paying the daily allowance for April.

We will update more information on the matter on our website as soon as possible.