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 a prolonged period, your right to sickness allowance may end. When the maximum sickness allowance payment period has been reached, you get the right to apply for disability pension.  The processing period for disability pensions can be several months, however, and a pension is not always granted even if you are still on sick leave. In these situations you may be entitled to unemployment benefit. Daily allowances can be paid until your pension is granted or sick leave ends. In order get unemployment benefit you also need to meet the qualifying conditions.

Register as a jobseeker

 Also in these situations you must register as an unemployed jobseeker with the TE Office. Tell the TE Office that you are searching for full-time work because only full-time jobseekers are entitled to unemployment benefit.  You can register with the TE Office as soon as you know when your maximum sickness allowance  period ends. If, however, you are granted a pension before you get to apply for daily allowances, it is sufficient to inform the TE Office of this.

Also in these situations, daily allowances can only be paid if you meet the work requirement and have been a member of the unemployment fund for long enough.

Send the application two weeks after the maximum sickness allowance period ends

 You can complete your first application two weeks after the end of the maximum sickness allowance period. After this you can apply for daily allowances in four-week periods. You must attach a copy of your last sickness allowance decision and a current medical certificate to the application. Also state in your application if you have applied for a pension, and if your application has been rejected send a copy of the negative decision. 

Certificate from your employer

 If your employment relationship is ongoing, you must also send the fund a certificate from your employer stating that no work is available matching your working capacity. Your employer should write a certificate of this in their own words to the fund. Minutes of tripartite negotiations are not accepted – your employer must write a certificate for the unemployment fund.  

Granting of the pension

 When pension providers grant pensions, they inform the fund of this. The pension provider pays the pension to the unemployment fund for any period for which the fund has already paid you daily allowances. If the pension is more than the daily allowances, the difference is paid to you. If the pension doesn’t fully cover the daily allowances, the difference is not recovered from the applicant. The fund and the pension provider sort this out between themselves, and you don’t need to worry about it. Do, however, inform the fund and the TE Office when you have got your pension decision.