Government proposes to reduce the minimum amount of partial labour market subsidy

1. The minimum amount of partial labour market subsidy would be reduced

The Government proposes to reduce the minimum amount of partial labour market subsidy.

Following the amendments, the partial labour market subsidy would always come to a minimum of 35 per cent of the full amount. At present, the partial labour market subsidy always comes to a minimum of 50 per cent of the full amount.

A partial labour market subsidy is granted to an unemployed person who is living with their parents. The full amount of the labour market subsidy is granted if the parents’ income does not exceed EUR 1,781 per month in total.

The labour market subsidy is EUR 37.21 per day (an average EUR 800.02 per month) in 2024.

2. Informal caregiver’s fee received by a parent would no longer reduce the amount of labour market subsidy

The Government proposes that care fees received by informal caregivers should no longer be taken into account as income for the parents of unemployed persons receiving labour market subsidy. As a result, these care fees would not reduce the amount of labour market subsidy for recipients living with their parents. The change would only apply to situations where a parent acts as a family caregiver on a not-for-profit basis.

At present, care fees for informal caregivers are taken into account as income for a parent of a recipient of labour market subsidy, and the care fees may then reduce the amount of labour market subsidy available to an unemployed person who is living with their parents.

3. Family caregiver’s fee received by a parent would no longer reduce the amount of labour market subsidy

In addition, the Government proposes that care fees received by family caregivers should no longer be taken into account as income for the parents of unemployed persons receiving labour market subsidy. As a result, these care fees would not reduce the amount of labour market subsidy received by a recipient living with their parents.

At present, care fees for family caregivers are taken into account as income for a parent of a recipient of labour market subsidy, and the care fees may then reduce the amount of labour market subsidy available to an unemployed person who is living with their parents.

Parliament is expected to pass the amendments to the labour market subsidy in autumn 2024, with the amendments entering into force on 1 January 2025. The changes would affect labour market subsidies paid in January 2025 and later.

Kela will provide further information about the changes to the labour market subsidy as the review of the Government proposal progresses in Parliament.

Follow changes to social security benefits.

 

If Parliament approves the amendments, they will enter into force automatically. If you receive labour market subsidy, you do not have to do anything.