Work incapacity and earnings-related allowance

Payment of earnings-related allowance when the maximum period of sickness allowance is reached

 If work incapacity continues for an extended period, your right to sickness allowance may come to an end. Once the maximum sickness allowance period has been reached, you become eligible for a disability pension.

The processing for disability pensions can take several months, and a pension is not always granted even if you are still on sick leave. In these cases, you may be entitled to unemployment benefit. Earnings-related allowances can be paid until your pension is granted or your sick leave ends.

Please note that to receive earnings-related allowance, you must also meet the qualifying conditions.

Register as a jobseeker

Even during work incapacity, you must register as a jobseeker with the employment authority in order to be eligible for earnings-related allowance. Inform the employment authority that you are seeking full-time work, as only full-time jobseekers are eligible for unemployment benefit.

You can register as a jobseeker as soon as you know when your maximum sickness allowance period will end. However, if you are granted a pension before you apply for earnings-related allowances, it is sufficient to inform the employment authority of this.

Please note that earnings-related allowance can only be paid if you meet the work requirement and membership condition.

Submit your application two weeks after the maximum sickness allowance period ends

You can submit your first application two weeks after your maximum sickness allowance period ends. After that, earnings-related allowance can be applied for in four-week periods. 

Your application must include a copy of your last sickness allowance decision and a current medical certificate. Also indicate in your application whether you have applied for a pension. If your pension application has been rejected, include a copy of the negative decision. 

Certificate from your employer

If your employment relationship is ongoing, you must provide the Fund with a certificate from your employer stating that no work is available matching your work capacity. 

The certificate should be written by your employer in their own words and sent directly to the Fund. Minutes of tripartite negotiations are not accepted – the certificate mst come directly from your employer. 

Granting of the pension

When a pension is granted, the pension provider informs the Fund. The pension provider will pay the pension to the Fund for any period for which earnings-related allowance has already been paid.

If the pension mount exceeds the earnings-related allowance, the difference will be paid to you. If the pension does not fully cover the allowances, the difference will not be recovered from you.

The Fund and the pension provider handle all adjustments between themselves, so you do not need to worry about this. However, please remember to inform both the Fund and the employment authority once you have received your pension decision.