The labour market subsidy amounts to
EUR 37.21 per day
Labour market subsidy
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The labour market subsidy is one of the two unemployment benefits provided by Kela. The labour market subsidy provides economic security while you are looking for work.
Can I get labour market subsidy?
You can get labour market subsidy if you are unemployed and
- are 18–64 years old and permanently residing in Finland
- you enter the labour market for the first time or you have not worked long enough, i.e. you do not meet the work requirement
- you can no longer receive basic or earnings-related unemployment allowance since your entitlement to these benefits has ended.
If you meet the work requirement, the unemployment benefit you receive is basic unemployment allowance or earnings-related unemployment allowance.
Read more about the work requirement and the other unemployment benefits.
You can receive labour market subsidy for as long as you are unemployed since its duration has not been restricted. However, when you apply for labour market subsidy we will investigate if you need it. This is called means-testing.
Qualifying period if you do not have a vocational qualification or higher education degree
If you have not completed vocational qualifications or a higher education degree, you must complete a qualifying period to be eligible for labour market subsidy. Upper secondary school education is not considered a vocational qualification. The qualifying period concerns jobseekers of all ages.
The qualifying period is 21 weeks, i.e. about 5 months.
No qualifying period is required if labour market subsidy is paid immediately after basic or earnings-related unemployment allowance has been paid for the maximum period of time.
The qualifying period starts when
- you become unemployed and register as an unemployed jobseeker
- you have ended full-time studies and register as an unemployed jobseeker
- the period without benefit, i.e. the mandatory waiting period, ends
- the obligation of employment is met.
Qualifying period if an obligation of employment has been set for you
If you are under 25 years of age and TE Services have set an obligation of employment for you, the qualifying period does not start until you have met the obligation.
Read more about the obligation of employment for persons aged under 25 years.
What reduces the qualifying period?
The qualifying period is reduced by the following full calendar weeks:
- You have been in employment that meets the work requirement.
- You have worked as a self-employed person and the work can be included in the work requirement for self-employed persons.
- You have received unemployment benefits during the previous 2 years. The qualifying period is also reduced by weeks when you have otherwise been entitled to an unemployment benefit, but you have not received the benefit due to a waiting period, means-testing (income) for labour market subsidy or a qualifying period.
- You have received unemployment benefit from another EU or EEA country or Switzerland during the previous 2 years.
For instance, work done while completing a waiting period imposed by TE Services cannot be deducted from the qualifying period, however.
How much is the labour market subsidy?
Labour market subsidy is paid for 5 days a week (including mid-week holidays).
You must pay tax on the labour market subsidy.
Increases to the benefit
If you participate in employment promoting services, you can receive an increase to the labour market subsidy for the duration of the participation in the service. The increase amounts to EUR 5.29 per day, or on average EUR 111 per month. The increase can be paid for a maximum of 200 working days in total.
Government proposes end to increased rate for unemployment benefits
The Government proposes that unemployment benefits will no longer be paid at an increased rate for the duration of employment-promoting services.
Income that reduces the labour market subsidy
The labour market subsidy is reduced by
- your own earnings
- your parents’ income if you live with them
- other income than wages, for instance capital income.
If you for instance receive a wage or salary from part-time work, the wage or salary reduces the amount of the labour market subsidy. In this case, you receive adjusted labour market subsidy.
Kela uses primarily the data from the most recently finalised tax assessment as regards other income than wages and salaries. If your income has changed significantly, tell Kela about it.
We also take into account capital income and other income than wages and salaries that you have received at other times than during the unemployment period. Regular income, for instance dividends, is periodised as income over a period of one year.
Government proposes changes to partial labour market subsidy
The Government proposes to reduce the minimum amount of partial labour market subsidy. In addition, the Government proposes that care fees received by informal caregivers and family caregivers should no longer be taken into account as parental income.
If you live with your parents, their income may affect your labour market subsidy. If your parents’ income does not exceed EUR 1,781 per month in total, the reduction is not made. Each underage child who lives with your parents and whom the parents provide for increases the income limit by EUR 106 per month.
If your parents' income exceeds the income limit, your labour market subsidy will be reduced by half of the income that exceeds the income limit (EUR 1,781 per month). However, you will still get at least half your labour market subsidy.
| Parents' family circumstances | In order for you to receive the full labour market subsidy, your parents can together earn a maximum of: | Combined income of the parents; if exceeded you get 50% of the labour market subsidy |
No dependent children | EUR 1,781 per month | EUR 2 581 per month |
| 1 child | EUR 1 887 per month | EUR 2 687 per month |
| 2 children | EUR 1 993 per month | EUR 2 793 per month |
| 3 children | EUR 2 099 per month | EUR 2 899 per month |
| 4 children | EUR 2 205 per month | EUR 3 005 per month |
| 5 children or more | EUR 2 311 per month | EUR 3 111 per month |
You must report your parents’ income in your application for labour market subsidy if you live with them. If you do not provide this information, you will automatically be granted 50% of the labour market subsidy due to you.
Read how your parents’ divorce may affect your labour market subsidy.
If you can prove that your parents cannot support you financially, you can receive the labour market subsidy without reduction. Such a situation can occur for instance if your parents have large debt-related expenses.
If you participate in employment promoting services, you will receive the full labour market subsidy for this period even if you live with your parents.
Joonatan receives labour market subsidy and lives with his mother. His 8-year-old brother also lives at home. The mother earns a salary of EUR 2,200 per month. The mother has no commuting costs that can be deducted from the salary, but she pays a membership fee to an unemployment fund to the amount of EUR 84 per year. The fee is deducted from her income.
The full labour market subsidy (EUR 37.21 per day) is reduced by 50% of the mother’s income that exceeds the income limit (EUR 1,887). Joonatan receives EUR 31.30 per day in labour market subsidy.
Elli, who is applying for labour market subsidy, lives with her mother and father. Elli is an adult, and the household also includes 3 underage siblings. The combined income of the parents is EUR 4,500 per month, which means that the income exceeds the parental income limit for labour market subsidy (the parental income limit for a family with 3 underage children is EUR 2,866). On the basis of this, Elli would receive 50% of the labour market subsidy.
Elli sends documentation to Kela, showing that the parents have qualified for debt restructuring. The parents cannot support their adult daughter financially because there are also dependent minors in the family. Elli receives labour market subsidy to the full amount.
Your capital income and other income may reduce the amount of the labour market subsidy. They are thus incomes that are taken into account in the means-testing. Capital income includes for instance income from rent, forest holdings, interest and dividends (also dividends on equity savings accounts).
The amount of the labour market subsidy is also affected by
- informal care allowance
- compensations for family caregivers
- copyright royalties
- partial early old-age pension.
However, you can have income up to a certain amount without any effect on your benefit.
Other income than wages and salaries does not reduce your labour market subsidy in the following situations:
- You have reached the age of 55 years and you have met the work requirement before becoming unemployed.
- You participate in employment promoting services.
Capital income and other income that is taken into account in the means-testing have an income limit. You can have income up to the income limit without any effect on your benefit. The income limit for the means-testing is not the same as the exempt amount as regards wages and salaries. If you earn a wage or salary, you can receive adjusted unemployment benefit. The adjustment takes into account wages and salaries, while the means-testing takes into account all other income.
More on the impact of wages and salaries on the labour market subsidy.
Unemployed person living alone
If you live alone, the labour market subsidy is reduced by capital income and other income than wages and salaries that exceeds the income limit of EUR 311 per month. The full labour market subsidy is reduced by 75% of the income that exceeds the income limit.
Married or cohabiting person or parent of underage children
If you are married, cohabiting or in a registered partnership or the parent of underage children, the income limit is EUR 1,044 per month. The income limit is increased by EUR 130 for each dependent child. The full labour market subsidy is reduced by 50% of the income that exceeds the income limit.
If you receive other benefits, their amounts are usually directly deducted from the labour market subsidy you receive. If you receive a benefit that is paid out monthly, the daily amount of the benefit is calculated by dividing the benefit amount for the whole month by 21.5.
How to apply for labour market subsidy
You can apply for labour market subsidy either on a form or in the OmaKela e-service. OmaKela is currently only available in Finnish and Swedish. Kela’s forms are also available in English.
Apply in OmaKela
- Register with TE Services (tyomarkkinatori.fi) as an unemployed jobseeker. You cannot receive labour market subsidy unless you are registered as an unemployed jobseeker.
- Apply for labour market subsidy in th OmaKela e-service (available in Finnish and Swedish).
- Take photographs of the supporting documents and send them in OmaKela. From the application you can check which documents you should enclose with the application.
- Visit the OmaKela e-service to see if your application has been decided, how much you will get and when your benefits will be paid. You can also see possible reminders concerning, for instance, any documents missing from your application. You will also get a decision by post if you have not given up paper mail.
Apply on a form
- Register with TE Services (tyomarkkinatori.fi) as an unemployed jobseeker. You cannot receive labour market subsidy unless you are registered as an unemployed jobseeker.
- Fill in and print out the form Application - Unemployment benefits TT1e (pdf).
- Enclose additional documents in support of the application as necessary. The application form includes information on which supporting documents you need.
- Send the application and any supporting documents by mail. The address is Kela, PL 10, 00056 KELA.
- Visit OmaKela to see if your application has been decided, how much you will get and when your benefit will be paid. You will also see reminders of, for instance, supporting documents missing from your application. The decision notice will also be sent to your home address unless you have opted out of paper mail.
The decision notice is only in Finnish or Swedish. If you need help with something, you can call one of our English language customer service numbers.
Things to remember when you apply for labour market subsidy
State the dates in the application starting from the first day of unemployment. File the first application after 7 days of unemployment so that the waiting period has been completed. The days from Monday to Friday are counted as days of unemployment.
After this you should file an unemployment status report for a period of 2 weeks in order to receive the first benefit payment. After that you should file an unemployment status report every 4 weeks.
You can only report days of unemployment in the application afterwards. Applications for labour market subsidy can be made retroactively for up to 3 months.
TE Services will send a labour policy statement to Kela. Kela needs the statement to be able to decide on your application.
Example of application period
Marko becomes unemployed on 5 February and registers immediately as a jobseeker with TE Services. His 7-day waiting period ends on 13 February, and so Marko applies for labour market subsidy in the OmaKela e-service on 14 February.
The first payment period of 2 weeks for Marko’s basic unemployment allowance is 14 February-27 February, so he can report his days of unemployment in the OmaKela e-service on 28 February. After that he files an unemployment status report every 4 weeks, i.e. the next time for the period from 28 February to 26 March.
Kela obtains information on wages and salaries from the national incomes register. Kela uses this data when processing claims and applications. We may ask for additional information, if necessary.
If you have received income from self-employment, dividend or rental income or significant interest income, Kela needs documentation on these.
Documents that you have sent to TE Services are not available to Kela.
Report changes that affect the labour market subsidy
If you receive labour market subsidy, report the following on the unemployment status report in the OmaKela e-service:
- the number of hours and days that you have worked during the period of unemployment
- birth of a child or other changes in family circumstances
Also report any changes in the incomes that are taken into account for the means-testing.
When you report the changes, the benefit is paid to the correct amount and you also do not lose any benefit due to you.
If you do not notify changes of the above type, you may be paid the benefit without grounds and forced to pay it back later on. Read more about the recovery of overpaid benefits.