If you work full time, you are not eligible for unemployment benefits. If you only work part time, you may still be eligible for an unemployment benefit that is reduced by your other income.
An adjusted unemployment allowance can be paid if you accept a part-time or full-time job that lasts no more than two weeks or you receive income from working as a part-time entrepreneur or self-employed person.
A part-time job is defined as work under an employment contract of no more than 80% of the maximum working hours for full-time employees in that sector.
You will be viewed as a part-time entrepreneur or self-employed person if the working hours required by your activities are sufficiently few to not prevent you from accepting a full-time job. The decision on your status is made by the TE Office.
As an unemployed jobseeker, you are allowed to earn a certain amount per month without it reducing your unemployment benefit. You can earn EUR 500 per month (2020) or EUR 465 in four weeks. For every euro you earn over this limit, your benefit is reduced by 50 cents.
You must report your earnings to Kela or your unemployment fund even if they remain below the set limit.
The adjusted unemployment benefit you received is calculated on the basis of an adjustment period. This is a period over which your earnings are totalled to determine how much your adjusted unemployment benefit will be. The length of the adjustment period depends on your pay period and is either one calendar month or four weeks.
Your wages and/or any other payment you have received as compensation for work will be considered as earnings in the calculation. In addition to wages, your earnings can include royalties and copyright remunerations, wage-like remunerations and entrepreneurial income. However, tax-exempt scholarships and grants or remuneration from a role in a position of trust are not included.
The amount of your adjusted unemployment allowance is calculated by deducting half of the income that exceeds your monthly allowed earnings from the full unemployment allowance.
One-month adjustment period: Full allowance - (0.5 x [earnings - 500] / 21.5) = allowance per 1 day
Four-week adjustment period: Full allowance - (0.5 x [earnings - 465] / 20) = allowance per 1 day
The total sum of your allowance and earnings cannot exceed the earnings on which the allowance calculation is based. For example, if monthly earnings of EUR 2,000 were used as the basis for the allowance calculation, the total amount of the adjusted allowance and earnings could not exceed EUR 2,000.
Adjusted unemployment allowance is paid every day during the adjustment period (5 days/week) unless there are reasons preventing this.