A young person's guide to earnings-related allowance

23.03.2026

Every spring many young people make decisions about their future.They might be graduating, applying for new education or looking for a summer job. Even if unemployment is not the first topic on their mind, it is something worth preparing for. Below you'll find tips that 18-25-year olds should consider in case they need to apply for earnings-related allowance in the future.

Join an unemployment fund as soon as possible

If you become unemployed, are laid off, or only find part-time work, you may be eligible for earnings-related allowance from an unemployment fund.

Earnings-related allowance is based on your previous wage income which means that it is usually significantly higher than the basic unemployment benefit paid by Kela. For example, with a monthly income of 1600 €, your earnings-related allowance would be over 1100 € / month, whereas Kela’s basic allowance is around 800 € / month (gross).

You can join an unemployment fund if you are employed at the time of joining. As a member, you can accumulate eligibility for earnings-related allowance even through fixed-term jobs such as summer or gig work.

You may be eligible for earnings-related allowance during studies if they are considered part-time. Full-time studies usually prevent receiving unemployment benefits, but there are exceptions.

• Part-time studies: If your studies are classified as part-time, you may be eligible for earnings-related allowance. Remember to keep your jobseeker status active during your studies.
• Full-time studies: These generally prevent payment. However, you may receive unemployment benefits during full-time studies if they have been agreed in advance with the employment authority. Note that studies may be classified as full-time even if you do not receive student financial aid from Kela.

If you start studying while registered as an unemployed jobseeker, or if you already have ongoing studies when registering, report your studies to the employment authority and include the information in your earnings-related allowance application.

The employment authority always assesses how studies affect your eligibility and issues a statement to the unemployment fund.

Read more about studying while unemployed from Job Market Finland

If you are under 25 and do not hold a vocational qualification or a university degree, receiving earnings-related allowance requires that you meet the joint application requirement supervised by the employment authority.

This means you must apply to at least two degree programmes starting the following autumn that lead to qualification and provide vocational skills.

If you do not fulfill the joint application requirement by applying for two programmes, unemployment benefits cannot be paid.

You will lose your eligibility to earnings-related allowance also if you refuse to accept a place in education or discontinue your studies without a valid reason. Unemployment funds do not monitor this requirement; they always make their decisions based on the statement issued by the employment authority.

Read more about unemployment security for people under the age of 25

You are not entitled to earnings-related allowance during military or non-military service. This includes reserve refresher training, supplementary service for non-military service, participation in conscription and leave periods during service.

We recommend that you to keep your unemployment fund membership active during service so that the membership condition is not interrupted. Military and non-military service also extend the 28-month reference period for accumulating the work requirement.

If you receive earnings-related allowance before your service begins, remember to notify both your unemployment fund and the employment authority when the service starts. If you are a member of the Service Union United PAM, also update your exemption from union membership fees in PAM's digital service.