Employment condition changing on 2 September 2024

Unemployment Security Act amendments concerning the employment history required to be eligible for earnings-related unemployment allowance, also known as the employment condition, will be coming into effect in the autumn of 2024. Starting 2 September 2024, the length of the employment condition will be doubled, which means you will need to have been working for one year instead of six months to receive daily allowance.

The employment condition will also become income-based. This means that which months count towards the employment condition will be determined based on your wages. Calendar months in which you are paid at least €930 will count in full towards your employment condition. You can also accrue half months towards your employment condition if you are paid between €465 and €929.

If you are employed on 2 September 2024, the length of your employment condition will change to 12 months

The most important change to be aware of is that the length of the employment condition will be increased to 12 calendar months for anyone who is employed when the law comes into force on 2 September 2024 and is paid at least €465 a month.

Employment condition until 1 September 2024

You are still covered by the old employment condition if your last work week that counts towards earnings-related unemployment allowance ends on or before 1 September 2024.

If your last work week that counts towards earnings-related unemployment allowance ends on or before 1 September 2024, you will only need to have worked for about six months to be eligible for earnings-related allowance. In this case, you are covered by the old employment condition and are eligible for earnings-related unemployment allowance if you have worked at least 18 hours per calendar week for 26 calendar weeks during your unemployment fund membership.

Employment condition starting 2 September 2024

You are covered by the new employment condition if you are employed starting 2 September 2024 and are paid at least €465.

In this case, you are eligible for earnings-related unemployment allowance if you have worked at least 12 calendar months during your unemployment fund membership and have been paid at least €930 a month. Months in which you are paid at least €930 will count as a full employment condition month. Months in which you are paid between €465 and €929 will count as half an employment condition month. Any half months you accrue will count towards your 12-calendar-month employment condition.

Salary/month Time accrued towards your employment condition
at least €930 1 month
€465 to €929 1/2 months
under €465 no time accrued

The possibility of accruing half months can help people like students and part-time workers meet the employment condition. Every two half months are converted into one full employment condition month, and half months do not have to be accrued consecutively. This means you can meet the employment condition even if your monthly earnings are small. However, it is important to remember that the amount of earnings-related unemployment allowance you receive is determined by your earnings.

Monthly wages are calculated based on date of payment

For the purposes of the new employment condition, your wages are calculated based on the date of payment. For example, if you work temporary jobs for different employers in October and November and you are paid in December, only the month of December will count towards your employment condition. Exceptions include bonuses earned over the course of a year, which are divided across the year and are calculated according to when they are earned.

How will the change affect me?

If you have been a member of the unemployment fund for more than a year, worked continuously and earned over €930 a month, you can rest easy; you have probably met the new 12-month employment condition.

If you have worked less because you have been studying or you have gaps in your recent employment history, you may not have met the employment condition.

Example:

You have worked a total of 26 calendar weeks by 1 September 2024. Your employment relationship lasts until the end of September, and you will become [EJ1] unemployed starting 1 October 2024.

The calendar weeks you worked up to 1 September 2024 will be converted to the new employment condition months. This means you have accrued 6.5 employment condition months under the new 12-month employment condition (24 weeks / 4 weeks = 6 months, 2 weeks = 0.5 months).

If you are paid €930 or more in September, you will accrue a full employment condition month. This would mean that, when you become unemployed, you have only accrued 7.5 unemployment condition months and are not entitled to earnings-related unemployment allowance.

The employment condition reference period remains unchanged

The amendments to the law will not affect the employment condition reference period. As before, the employment condition must be met within the reference period of 28 months (2 years and 4 months). Unemployment condition months do not need to be accrued consecutively. Wage payment months from the past 2 years and 4 months can count towards your employment condition.

The reference period can also be extended if you have a good reason to have been unemployed and off the job market. For example, if you have been studying, sick, completing your military or non-military service, on job alternation leave, on a grant period or taking care of a child aged 3 or younger, months can be counted over a longer period. The reference period can be extended to a maximum of 9 years and 4 months.