Working is worthwhile even during periods of unemployment
Topics
- Income security
- Part-time job
- Unemployment
When you work part-time, you can also receive earnings-related daily allowance. You will not receive as much earnings-related daily allowance as you would if you were completely unemployed, because your salary will reduce the amount of earnings-related daily allowance you receive. However, your salary from part-time work combined with the agreed earnings-related daily allowance is more than you would receive in earnings-related daily allowance if you were completely unemployed. In addition, part-time work can improve your chances of finding employment.
Part-time work and adjusted daily allowance
If you work part-time while unemployed, you may be entitled to adjusted earnings-related daily allowance. The adjustment takes into account both your salary and your earnings-related daily allowance, with your total income being calculated as a combination of these two.
The purpose of the adjusted earnings-related daily allowance is to ensure that accepting work is profitable. In practice, this means that the salary from part-time work and the adjusted earnings-related daily allowance together are more than the full earnings-related daily allowance without work.
When you receive adjusted earnings-related daily allowance, the maximum payment period passes more slowly. Although the earnings-related daily allowance is lower due to your salary, you can still receive it for a longer period. This means that, within the maximum payment period, the earnings-related daily allowance does not actually decrease.
Maintaining employment supports employability
Part-time work is not only beneficial in terms of income. Being employed keeps you connected to the labor market and supports your job search in many ways:
- your work skills and expertise remain up to date
- you gain work experience even from part-time work
- going to work can improve your chances of receiving new job offers
- you are part of a network where information about upcoming vacancies is shared
An unemployed person who is working is often closer to finding their next job than someone who is completely outside the labor market.
Impact on future earnings-related daily allowance
Part-time work can contribute to the working condition. This can have a positive impact on your right to receive earnings-related daily allowance in the future. Working while unemployed can therefore improve your financial security in the longer term.
If the working condition is met with part-time wages, your new earnings-related daily allowance may be lower than before. However, the level of earnings-related daily allowance is protected in these situations. If you fulfill the new working condition before the previous maximum payment period has expired, your new earnings-related daily allowance will always be at least 80% of the previous earnings-related daily allowance paid.
Summary
It is worth accepting the job. If full-time work is not available, part-time work combined with agreed earnings-related daily allowance is a better financial option than being completely unemployed. Staying in work also supports your job search and improves your chances of finding employment.