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How benefits affect earnings-related allowance

Various benefits may affect earnings-related allowance paid by the unemployment fund. Some benefits are deducted from earnings-related benefit and some prevent earnings-related benefit from being granted. Some benefits do not affect daily allowances at all.

The benefits that prevent earnings-related allowance are statutory benefits that compensate for loss of earnings.

 Examples of benefits that prevent earnings-related allowance being granted include
  • pregnancy allowance and parental allowance
  • rehabilitation allowance
  • sickness allowance and partial sickness allowance
  • daily allowances and pensions based on full work disability

If a preventive benefit has a waiting period (e.g. rehabilitation or sickness allowance), earnings-related allowance can be paid for that period.

Examples of benefits that reduce earnings-related allowance include
  • partial disability pension
  • sickness allowance on account of an infectious disease
  • flexible care allowance
  • supplementary pension provided by employer
  • child care allowance

Child care allowance is granted on a family basis, so it is taken into account in earnings-related allowance in the same way. Care allowance granted to an applicant always reduces the applicant’s daily allowances. Care allowance granted to your spouse reduces your daily allowances unless your spouse looks after your child at home and is out of the labour market for this reason. Care allowance granted to your spouse is also not deducted if it is already deducted from unemployment benefit that your spouse receives him/herself.

Examples of benefits that do not affect daily allowances at all include
  • child benefit
  • housing allowance
  • disability allowance
  • survivors’ pensions
  • partial early old age pension
  • voluntary pension by person

When you apply for daily allowances, you must notify the unemployment fund of any benefits you get that prevent or reduce daily allowances. If you are unsure if a benefit you get is in this category, state this in your application. If necessary, the unemployment fund will ask for additional information about the benefit granted to you.