Part-time work and legislative changes – what effects has the removal of the exempt amount had?

Topics

• Income security
• Law change
• Part-time job
• Unemployment

Legislative changes in 2024 brought changes to the rules governing earnings-related unemployment benefits. One of the biggest changes made by the government was the removal of the exempt amount, which affected the everyday lives and livelihoods of many part-time workers in Finland.

Before the amendment, the unemployment exempt amount was 300 € per month, which unemployed persons could earn without it affecting the amount of their unemployment benefits. This meant that if an unemployed person earned 300 € or less per month from part-time work, their unemployment benefits were not reduced. For any amount exceeding 300 €, unemployment benefits were reduced by 50 cents per euro. After the removal of the unemployment exempt amount, all earned income reduces unemployment benefits.

The purpose of the exempt amount was to enable unemployed people to take on small jobs. By removing the exempt amount, the government has sought to steer the unemployed from part-time work to full-time work.

We wanted to know how our members had experienced the change, so we conducted a survey on the subject.

Employment situations are changing – part-time work, full-time work, and unemployment

Our survey was answered by members who had worked part-time in 2024 and sent us an application for adjusted daily allowance. The responses reveal the impact of the legislative change on part-time work:

• 50% continued in part-time work after the change in the law
• 18% of respondents reported that their part-time working hours had decreased
• 16% reported that they had become completely unemployed
• 8% reported that they had found full-time employment
   

Working hours remained the same for almost half of the respondents. As many as 38% reported a reduction in working hours or the end of their part-time work. 8% of respondents found full-time employment.

The effects of the legislative amendment vary

Respondents were fairly evenly divided on how the legislative amendment affected their working hours: 42% felt that it had an impact, while 42% did not. The rest were unable to say.

Of those who switched to full-time work, only 10% cited the reduction in the adjusted daily allowance due to the removal of the exempt amount as the reason for the change. More often, the reason for finding employment was that the employer offered full-time work.

In contrast, 63% of those who stopped working part-time cited the reduction in their adjusted daily allowance due to the legislative change as the reason for their decision. The result suggests that the legislative change had a greater impact on people leaving work than on people switching to full-time work.

Is part-time work still worthwhile?

We also asked our members how they feel about the financial viability of combining part-time work with adjusted daily allowances.

• 44% still consider the combination viable compared to full-time unemployment

• 36% considered that the combination was no longer viable compared to full-time unemployment
   

When comparing the combination of part-time work and daily allowance with full-time work, the assessments are more clearly divided:

• 62% feel that the combination of part-time work and unemployment benefits is not financially viable compared to full-time work

• Only 17% feel the opposite

Open responses reveal concerns about everyday life and motivation

The open responses to the survey reveal concerns that affect many people. Many mention financial pressure, as the removal of the exempt amount has weakened their livelihood. Financial stress weighs heavily on everyday life. Many also feel that working is no longer worthwhile, as it reduces their benefits.

In addition, many respondents feel that the removal of the exempt amount has increased unemployment and reduced the willingness to take on small-scale work. There were also calls for the exempt amount to be reinstated or for other incentive solutions to be developed.

The survey was conducted between June 11 and June 17, 2025, among YTK members who worked part-time before the exempt amount was removed. A total of 2,720 people responded to the survey. Thank you to everyone who responded!