Government proposes end to increased rate for unemployment benefits and commuting and relocation allowance
The Government proposes that unemployment benefits will no longer be paid at an increased rate for the duration of employment-promoting services. Commuting and relocation allowance would also no longer be paid at an increased rate. Parliament is expected to pass these amendments in autumn 2024, with the amendments entering into force on 1 January 2025.
The Government proposes that unemployment benefits will no longer be paid at an increased rate for the duration of employment-promoting services.
At present, unemployment benefits can be paid at a rate increased by a supplementary amount during participation in employment-promoting services.
The supplementary amount payable with the labour market subsidy, the basic unemployment allowance and the earnings-related unemployment allowance is EUR 5.29 per day (EUR 111 per month on average).
Parliament is expected to pass the amendments to unemployment benefits during participation in employment-promoting services in autumn 2024, with the amendments entering into force on 1 January 2025.
This would mean that unemployment benefits will no longer be paid at an increased rate for the duration of employment-promoting services that begin on 1 January 2025 or later.
The increased rate could still be paid for employment-promoting services that began in 2024. A recipient would be able to receive unemployment benefits at the increased rate for a maximum total of 200 days.
Kela will provide further information about the changes to unemployment benefits as the review of the Government proposal progresses in Parliament.
If Parliament approves the amendments, they will enter into force automatically. If you participate in employment-promoting services, you do not have to do anything.
The Government proposes that commuting and relocation allowance would also no longer be paid at an increased rate.
Commuting and relocation allowance is intended to compensate an unemployed person for the costs of accepting a job or a training opportunity when it involves a long commute or a move closer to the workplace. At present, the commuting and relocation allowance can be increased if the commute to work or training is unusually long (more than 200 km).
The increase is EUR 5.29 per day.
Parliament is expected to pass the amendments to the commuting and relocation allowance in autumn 2024, with the amendments entering into force on 1 January 2025.
The allowance could still be paid at the increased rate for work or training that began in 2024.
Kela will provide further information about the changes to the commuting and relocation allowance as the review of the Government proposal progresses in Parliament.
If Parliament approves the amendments, they will enter into force automatically. If you receive commuting and relocation allowance, you do not have to do anything.
Learn more
Kela: Financial assistance during participation in employment promoting services
Kela: Commuting and relocation allowance