Unemployment benefits

If you have not worked previously you can receive labour market subsidy from Kela.

When you become unemployed, you must report as an unemployed jobseeker at the employment office.

Unemployment allowance is paid out via two different systems. If you are not a member of an unemployment benefit fund you can receive the basic unemployment allowance from Kela. If, on the other hand, you are a member of an unemployment benefit fund you will receive an income-related allowance from your own fund. To receive an income-related allowance you must have been a member of an unemployment benefit fund during the last 10 previous months at least.

Kela ensures payments for those who are unemployed primarily through the unemployment allowance and labour market subsidy.

Unemployment allowance

The basic unemployment allowance and the income-related unemployment allowance are granted according to much the same principles. You have the right to unemployment allowance if you are

• unemployed 
• between the ages of 17-64
• resident in Finland 
• registered as an unemployed job seeker at an employment office 
• seeking full-time employment 
• fit for work
• available on the labour market and
• comply with the terms of employment.

You meet the requirements as a wage earner if you have been gainfully employed for at least 18 hours a week for 43 weeks during the last 28 months and have received wages according to the industry’s collective agreement or at least 1 019 €/month (year 2009).

The unemployment allowance is paid out after an excess period of 7 days. During this period you must be registered as an unemployed job-seeker at the employment office. The excess period can include unemployment days during a maximum of eight calendar weeks in sequence.

Labour market subsidy

The labour market subsidy provides economic support for persons who are entering the labour market for the first time and persons who have received unemployment allowance for the maximum period. You need not have worked previously to receive this providing you live permanently in Finland.

You can receive labour market subsidy if you are aged between 17-64 and you have not worked for 10 months during the last 28 months before becoming unemployed. You must be permanent resident in Finland. Labour market subsidy is not paid during the time you seek work in another Nordic country. The subsidy is means tested which means that it is reduced as a consequence of your income and that of your spouse.