There will be changes affecting the recipients of earnings-related allowance in the unemployment security act as of 1.1.2018.
Figures of 2018
The earnings-related allowance is composed of the basic component equaling to basic allowance, earnings-related component based on your salary and possible increased components. The basic component and child support supplement remain the same as they were in 2017.
The basic component of earnings-related allowance is 32,40 € per day in 2018.
Child support supplements:
1 child 5,23 €/day
2 children 7,68 €/day
3 or more children 9,90 €/day
Deduction percentage (so called Tyel-decrease) of the salary when calculating the daily allowance is 4,48%.
The minimum wage for a full-time job is 1 189 €/month when calculating the employment condition.
Activation model
In the future, the activity of an applicant of earnings-related allowance is monitored in periods of 65 days by their unemployment fund. If the applicant has not been active in the way defined by the law, the allowance will decrease by 4,65 %.
More information on the activation model
Waiting period is shortened to 5 days
The waiting period will be 5 days instead of the previous 7 days.
Mobility allowance is being extended
The mobility allowance is extended to cover part-time work and work-related training. Mobility allowance is designed to encourage receiving work also from a further distance.
As from the beginning of 2018, mobility allowance can also be paid for a training related to a new job and a part-time job with less than 18 working hours per week. Mobility allowance is paid for the working days.
In the future, an unemployment fund can pay mobility allowance with a child support supplement as it is paid with earnings-related allowance. In addition, it can be paid with an increased component if the work place is located or a training related to a job is organized more than 200 kilometers away from your domicile or your domicile before moving.
From the beginning of the year, you can also apply for mobility allowance when the job or training has already begun. Mobility allowance can now be applied for within 3 months, like earnings-related allowance.
Becoming an entrepreneur will be easier
From the beginning of the year, the employment and economic development office (TE office) will no longer examine whether a person is a part-time or a full-time entrepreneur for the first four months from the beginning of the entrepreneurship. This means that an unemployed person can receive earnings-related allowance for at least four months since starting their entrepreneurial activities. The income received from the business will deduct the amount of the earnings-related allowance according to the regulations regarding adjusted allowance.