Changes to unemployment benefits
News
Topics
- Income security
- Law change
- Membership
- Unemployment
- YTK
The government program includes a goal to reform basic social security. The aim is to improve the profitability of work, streamline social security, and simplify benefits. A draft proposal has been published, suggesting that basic benefits be combined into a universal benefit. The change will not directly affect earnings-related daily allowance, but other unemployment benefits, i.e., basic daily allowance and labor market support, will be merged into the new General social security benefit.
General social security benefit
A draft of the new general social security benefit act has been published for commentary. The regulations on general social security benefit are intended to enter into force on February 1, 2026. General social security benefit will replace the current basic daily allowance and labor market support, and the aim is to create a clearer, more encouraging, and simpler basic security model for periods of unemployment.
What is the General benefit?
General social security benefit is a needs-based benefit that secures the basic income of unemployed jobseekers during unemployment and promotes a quick return to work. The amount of the benefit corresponds to the current basic part of the earnings-related daily allowance, i.e. approximately 800 euros per month (2025 level).
What will change?
General social security benefit will combine the basic unemployment benefits. The aim is to make accepting work financially viable in all cases.
The government’s aim is to combine different forms of support into a single benefit consisting of a basic component, a housing component, and a discretionary component. General social security benefit will gradually replace the various existing benefits with a single application system. The first phase will involve combining unemployment-related benefits.
Membership in an unemployment fund is now even more important
If you are a member of an unemployment fund and meet the working condition, you can apply for earnings-related daily allowance. If you are not a member of an unemployment fund, you can apply for basic daily allowance. Basic daily allowance is paid based on the working condition. The General benefit now being proposed will also replace basic daily allowance. However, the General benefit is needs-based, which means that the conditions for granting it are stricter than those for the current basic daily allowance.
Joining an unemployment fund will therefore become even more important in the future, as general support would be needs-based for unemployed persons who meet the working condition, unlike the current basic allowance.
Who is eligible for the General benefit?
General social security benefit is paid to persons
- who are not entitled to earnings-related daily allowance
- who have already used the maximum period of earnings-related daily allowance
- who meet the criteria for financial assistance
- who comply with job search obligations and participate in employment promotion services
Special conditions
- 21-week waiting period for those without a vocational qualification
- partial general benefit for persons living with their parents and not meeting the working condition
- 7 days of waiting period (not imposed, for example, when a person transfers to general benefit after reaching the maximum period for earnings-related daily allowance)
Implementation of the General benefit
According to the draft proposal, Kela would be responsible for implementing general benefit. Unemployment funds would continue to pay earnings-related daily allowance as before. Employment authorities and the KEHA Center would participate in the service process for job seekers.
Kela will continue to verify that the working condition is met, because according to the proposed financing solution, unemployment insurance contribution revenue would continue to be used only to finance benefits for recipients of general benefit who meet the working condition. In addition, fulfillment of the working condition would also reset the accumulation of benefit days used as the basis for the municipality’s financial responsibility for applicants who do not belong to an unemployment fund. The working condition would still have to be examined for recipients of general benefit who are members of an unemployment fund, because fulfilling the working condition would enable them to transfer to earnings-related daily allowance.