Payment of the daily allowance (FAQ)

Daily allowance applications are processed in the order in which they are received. Your daily allowance can be paid out once we have received all the information we need to process the application. The KOKO fund pays out daily allowances every weekday. Once we have made a payment, it will be in your account two banking days later.

First applications are always processed by an official, and the processing time depends on the backlog of applications at any given time and on whether you have included all the attachments required. A continuing application may be processed as an automatic payment, in which case it will only take two banking days from submitting the application to receiving payment in your account. However, you should always prepare for the eventuality that your application will be queued and take 1–2 weeks to process, even if you have had earlier applications processed as automatic payments.

You can check your status under application status on the front page.

The amount of your daily allowance will be calculated on the basis of the wage information that you submit to KOKO attached to your first daily allowance application. We do not make advance calculations to estimate the amount of your daily allowance; we will calculate your daily allowance when you apply for it.

There is an allowance calculator, but this should be considered indicative only. For further information on how daily allowance is calculated, see calculating daily allowance.

The monthly wage that forms the basis of earnings-related daily allowance is not the same as your monthly salary, since the employee's pension contribution (TyEL) (4.24% in 2019) is deducted from the wages for the purposes of calculating the allowance. Also, not all of the wage components you were paid affect the amount of the daily allowance, such as holiday bonuses and tax-free income. For further information on which wage components contribute to your daily allowance, see monthly wage on which daily allowance is based.

Any financial compensation received from the employer upon the termination of employment (such as a ‘golden handshake’, support package, or severance pay) will disqualify you from earnings-related daily allowance for the term over which such compensation is periodised on the basis of the wages you received in your most recent employment relationship. The term of periodisation is calculated by dividing the amount of compensation by your average daily wages. Holiday bonuses and holiday compensation are not periodised, and they have no impact on your earnings-related daily allowance when your employment relationship ends.

A term of periodisation is followed by a 5-day waiting period, after which payment of daily allowance may begin.

Due to the coronavirus situation unemployment benefits can be paid to an unemployed or laid-off person for the 5-day waiting period. This change applies to persons whose waiting period starts between 16 March and 31 December 2020.

Payment of earnings-related daily allowance is preceded by a waiting period. The waiting period is a period corresponding to 5 full working days during which you would normally be paid daily allowance.

Due to the coronavirus situation unemployment benefits can be paid to an unemployed or laid-off person for the 5-day waiting period. This change applies to persons whose waiting period starts between 16 March and 31 December 2020.

Payment of daily unemployment allowance is also prevented by a suspension period, term of periodisation or any of the general restrictions on the entitlement to daily allowance. If you have applied to KOKO for a daily allowance and you have not been given a clear reason as to why you have not been paid the daily allowance, please contact us.

If you are paid a child home care allowance, this will be deducted from your earnings-related daily allowance. If your spouse is in part-time employment, is studying, or is an entrepreneur, any child home care allowance paid to him/her will be deducted from your daily allowance.

However, a child home care allowance paid to your spouse will not be deducted from your earnings-related daily allowance if:

  • your spouse cares for the child(ren) himself/herself without receiving a daily allowance,
  • your spouse is unemployed, because in that case the deduction will be made from his/her daily allowance,
  • your spouse is being paid a maternity, paternity, or parental allowance in addition to the child home care allowance.

If your family is receiving a child home care allowance, you must support a report on the child home care allowance along with a copy of the Kela decision to the KOKO unemployment fund.

Child home care allowance enquiry

If you are paid holiday pay based on full-time wages, you are not entitled to a daily allowance for the holiday days. If, on the other hand, you are paid holiday pay based on part-time wages, you are entitled to an adjusted daily allowance for the holiday days. Read more about the effect of annual leave on the daily allowance here.

You must indicate on your daily allowance application which are the days on which you are on annual holiday. Send the vacation-time salary calculation to the fund when you receive it.

The number of days on which you have been paid a daily allowance and your maximum period are shown on your allowance payment notification and under ‘accruals (kertymät)’ in the eService status reports.

Payment of daily allowance may be resumed after you have accrued 26 calendar weeks of employment meeting the employment condition. However, weeks used for a previous calculation of the employment condition cannot be included in the calculation of meeting a new employment condition; also, weeks employed that were so long ago that they are outside the review period cannot be included. The decision to suspend your daily allowance will indicate how many weeks you have accrued towards meeting the employment condition by the time your maximum daily allowance period expired.

Once you have met the employment condition, you will be entitled to receive a daily allowance again. If you become unemployed or are in part-time employment and are not sure whether you have met the employment condition, you may register with the TE Office as a jobseeker and submit an earnings-related daily allowance application to KOKO 2 weeks after registration; we will then check whether you have met the employment condition.

A personal tax refund does not affect the daily allowance.