Unemployment benefits in Finland
Unemployment insurance is part of the Finnish social security system. Unemployment insurance includes a number of different subsidies and benefits designed to safeguard the livelihood of individuals who become unemployed. This page tells you about entitlement to unemployment allowance and labour market subsidy.
Certain special rules apply to workers who go abroad or come from abroad to work, cross-border workers, remigrants and individuals who go abroad as unemployed jobseekers. You can read about these in the section Rules for certain special groups.
Which country's unemployment insurance system are you covered by?
As a general rule, you are covered by unemployment insurance in the country where you work or whose legislation applies to you. You cannot, therefore, continue to be a member of a Finnish unemployment fund if you have moved to another country to work and you are covered by the social security in your country of employment.
You can find more information on which country’s social security you are covered by on the page Which country's social security system are you covered by?
Unemployment allowance
In Finland, unemployment allowance is paid from two different systems. If you become unemployed and you are a member of an unemployment fund, you can get earnings-related unemployment allowance from your unemployment fund. If you are not a member of an unemployment fund, you can get basic unemployment allowance from the Social Insurance Institution of Finland (Kela).
If you are not entitled to unemployment allowance, you can get labour market subsidy. You can find more information on labour market subsidy below in the section Labour market subsidy.
Unemployment funds in Finland
If you want to get earnings-related unemployment allowance if you become unemployed, join an unemployment fund. You can be a member of an unemployment fund either through a trade union or directly as an individual member. You can find contact information for unemployment funds on the website of the Federation of Unemployment Funds (TYJ), and you can read more about trade unions on the page Trade unions in Finland.
You normally join an unemployment fund in the country where you work or whose legislation applies to you. You can read about the rules for certain special groups below in the section Rules for certain special groups.
In Finland you can also join an unemployment fund while unemployed if you come from another EU/EEA country. In order to transfer periods of employment and insurance accrued in the other country, you must join a fund within eight weeks if you return to Finland within 5 years from another Nordic country. In other cases the time limit for joining is 1 month.
Unemployment allowance
Are you entitled to unemployment allowance?
Basic unemployment allowance and earnings-related unemployment allowance are generally granted on the same basis. You are entitled to unemployment allowance if all of the following conditions are met:
- you are aged 17-64,
- you are unemployed,
- you live in Finland,
- you are registered with TE Services as an unemployed jobseeker,
- you are looking for full-time employment,
- you are able to work and are available in the labour market and
- you meet the work requirement.
You meet the employees’ work requirement if you have been in paid employment for at least 18 hours a week for 26 weeks during the last 6 months and your pay has complied with the relevant collective agreement. If there is no relevant collective agreement, your wage must be at least a certain amount in euros per month. You meet the earnings-related unemployment fund membership requirement if the work requirement is met whilst you are a member.
If you have previously worked in another EU/EEA country and you become unemployed in Finland before meeting the work requirement, read the section below on Entitlement to unemployment benefits in Finland for foreign workers.
How do you apply for unemployment allowance?
If you become unemployed, register as a jobseeker with TE Services on Job Market Finland as soon as possible.
If you are a member of an unemployment fund, apply for earnings-related unemployment allowance directly from your unemployment fund. You can get further guidance from your unemployment fund.
If you are not a member of an unemployment fund, apply for basic unemployment allowance from Kela.
When do unemployment allowance payments start?
Unemployment allowance payments generally start after a waiting period of 5 working days. Severance pay or similar payments are an exception to this.
During the waiting period you must be an unemployed jobseeker with Job Market Finland. The waiting period does not need to be continuous. Days of unemployment in no more than 8 consecutive calendar weeks can count towards it.
Unemployment allowance is paid for five days a week and is taxable income.
Rules for certain special groups
Rules for certain special groups
Special rules apply to workers moving abroad or coming from abroad, cross-border workers, individuals returning from another Nordic country and those who want to go abroad or come to Finland from abroad to look for work, and you can find information on these rules below.
Åland is part of Finland, so the rules below do not apply to individuals moving between Finland and Åland.
If you have previously been covered by Finnish unemployment security and you go abroad to work, you can transfer unemployment insurance periods accrued in Finland to your new country of employment.
Insurance periods are transferred using form U1. If you are a member of an earnings-related unemployment fund, you get the form from your fund. If you do not belong to an unemployment fund, you get the form from Kela. Insurance periods can also be transferred directly between countries via the EESSI system, then form U1 is not needed.
The right to aggregate periods of insurance and employment acquired in different countries applies to both employees and self-employed persons.
You can get more information from Kela or your unemployment fund.
If you start working in Finland and you want to have earnings-related unemployment insurance, join an unemployment fund within one month of moving to Finland. If you return from another Nordic country and you have been a member of a Finnish unemployment fund during the preceding 5 years, the time limit for joining is eight weeks. If you are not a member of an unemployment fund, you are only entitled to basic unemployment allowance from Kela if the conditions for unemployment allowance are met.
If you become unemployed in Finland before meeting the work requirement, the conditions for unemployment allowance may be met on the basis of work done in another EU/EEA country, Switzerland or the UK. Periods of insurance and employment in Sweden and Denmark are counted towards earnings-related benefits only if you had voluntary unemployment insurance. If you were only a member of the mandatory Alfa fund in Sweden, this is not counted. You usually also need to have worked in Finland for at least four weeks immediately before becoming unemployed.
If you are not entitled to unemployment allowance, you may be entitled to labour market subsidy. More information below in the section Labour market subsidy.
Using the services of a Finnish unemployment fund will be facilitated if you have requested form PD U1 from the unemployment fund or corresponding authority in your country of departure. You can get more information from the authorities from the authorities in your country of departure.
Under the Nordic Social Security Convention, periods of employment in another Nordic country can be directly counted towards the work requirement for unemployment allowance without the requirement of working for four weeks in Finland after returning. This applies if you return to Finland after being in another Nordic country for a maximum of five years.
You are considered to be a remigrant if you have previously lived in Finland permanently. You must also have worked or received unemployment allowance in Finland during the past five years to be entitled to unemployment allowance.
You are a cross-border worker if you live in one country and work in another and return to the country where you live on a daily or weekly basis.
Cross-border workers have their unemployment insurance in their country of employment. Cross-border workers are partly covered by special rules on applying for unemployment allowance.
If you are a cross-border worker with a valid employment contract and you are laid off or you work part-time or on-call, you must register as a jobseeker in the country you work in. Then unemployment benefit is paid by the unemployment fund or other competent authority in your country of employment.
If you are a cross-border worker and you become wholly unemployed, you must register as an unemployed jobseeker in your country of residence, and unemployment benefits are paid by the unemployment fund or other competent authority in the country of residence. It is important to register as a jobseeker with the job centre in your country of residence and send a membership form to an unemployment fund in your country of residence immediately after your job ends in your country of employment.
You are an exception to this if you live in a country other than the country you work in but do not return to your country of residence at least once a week (“atypical cross-border worker”). If you become unemployed, you can also apply for unemployment benefit in the country you work in, if you do not return to your country of residence and remain in the country you work in and register as a jobseeker there.
You can also come to Finland as an unemployed jobseeker and get unemployment allowance, but for this you must be registered as an unemployed jobseeker in your country of departure well before you move. Read more on the page on unemployment benefits in your country.
Unemployed jobseekers can, under certain conditions, get Finnish unemployment allowance if they go to other EU or EEA countries or Switzerland to look for a job. Unemployed jobseekers can keep their right to unemployment allowance for a maximum of three months when applying for jobs within the EU.
The condition is that you have been an unemployed jobseeker in Finland for four weeks before going abroad. However, the TE Office or local government pilot specialist may at their discretion reduce this period for a particular reason. If you have received unemployment allowance for the maximum period, you cannot get it to search for a job abroad. Labour market subsidy is not paid while job hunting abroad.
Before leaving, jobseekers must request a certificate of entitlement to unemployment security in Finland from a Kela office or unemployment fund (form U2). They must report to the local job centre in the country where they have gone to look for employment within one week of arriving in the country.
If as a jobseeker you have not found employment within three months, you must return to Finland or you will lose your right to Finnish unemployment allowance.
You can get more detailed information from Job Market Finland, Kela or your unemployment fund.
Individuals returning to Finland from another Nordic country
Under the Nordic Social Security Convention, periods of employment in another Nordic country can be directly counted in the work requirement for unemployment allowance without the requirement of working for four weeks in Finland after returning. This applies in cases where an individual returns to Finland after being in another Nordic country for a maximum of five years.
You are considered to be a returnee if you have previously lived in Finland permanently. You must also have worked in Finland or received unemployment allowance in Finland during the past five years to be entitled to unemployment allowance.
Unemployment insurance for cross-border workers
Cross-border workers, that is individuals who live in one country and work in another, are partly covered by special rules on applying for unemployment allowance. These rules depend on whether you are in the category of regular cross-border workers or other cross-border workers.
Cross-border workers
An individual who works daily in one country and lives in another country and returns home at least once a week is considered a cross-border worker. Cross-border workers are covered by unemployment insurance in the country where they work.
If you become unemployed partly or for a fixed period (lay-off), you must register as a jobseeker in your country of employment and then unemployment benefits are paid by the unemployment fund in the country of employment.
If you become wholly unemployed, you must register as an unemployed jobseeker in your country of residence, and unemployment benefits are paid by the unemployment fund or other competent authority in the country of residence.
Other cross-border workers
Unlike regular cross-border workers, other cross-border workers return home more infrequently than once a week. Other cross-border workers must have unemployment insurance in their country of employment.
If other cross-border workers become wholly unemployed, they can return to their country of residence as unemployed jobseekers or remain in their country of employment as unemployed jobseekers. Unemployment allowance is paid by the country in which you are an unemployed jobseeker.
Labour market subsidy
Labour market subsidy is financial support paid to individuals who do not meet the work requirement, who are entering the labour market for the first time or who have received unemployment allowance for the maximum period.
Labour market subsidy is means-tested. So most income reduces it.
Previous employment is not required in order to receive labour market subsidy, but you do need to be living in Finland permanently. You can get labour market subsidy if you are aged 17-64, you do not meet the work requirement and you live in Finland permanently.
You cannot get labour market subsidy if you go job hunting in another Nordic country. However, you can stay in another Nordic country temporarily and search for a job by yourself while you are there.
More information
Please fill in our contact form if you have any questions or if you have encountered an obstacle in another Nordic country.
NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.
