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Unemployment Insurance in EU->Finland
Unemployment insurance in Finland
Type of scheme
How to join? Finland have a basic compulsory Unemployment Insurance (KELA) in which you automatically will be enrolled when you start working in Finland.
Approximately 85% of employees also become member of an voluntary Unemployment insurance Fund, from which they can receive earnings-related unemployment benefit.
Contribution: Contributions to both types of insurance are paid to the Finnish Employment Fund ("Työllisyysrahasto") by the employer on behalf of itself and the employee on basis of paid salary reported to the Income Register. In 2025 the employer’s contribution percentage is 0,20% and the employee’s contribution percentage is 0,59%. The finnish state also finances part of the unemployment Insurance through taxes, and membership fees to the voluntary insurance Funds finances part of the earnings-related unemployment Insurance.
Self-employed persons are not obligated to pay any unemployment insurance contribution. However self-employed can join the Unemployment Insurance Fund for self-employed called the "Entrepreneur Fund" (Yrittäjäkassa). The State pays the amount of the earnings-related allowance for the entrepreneurs’ unemployment fund.
Who is covered? Employees and self-employed.
Benefit amount: Earnings-related (from Unemployment Insurance Fund) and flat-rate (from KELA).
Two types of Unemployment benefit
In Finland they have a basic flat-rate unemployment benefit ("peruspäiväraha") administered by KELA.
The second type is a voluntary earnings-related unemployment benefit ("ansiopäiväraha") for members of an Unemployment Insurance Fund. This is administered by the Unemployment Insurance Funds.
You can only receive one type of unemployment benefit at a time. You cannot receive unemployment benefits from Kela and an unemployment fund at the same time.
About the Unemployment Insurance Funds
There are 12 Unemployment insurance Funds for wage-earners and 1 for (full-time) self-employed.
Running a business part-time is not an obstacle to joining or belonging to a wage-earners’ unemployment fund. You can be classed as a part-time entrepreneur if, for example, you work full-time and run a business on the side.
Of the 12 Funds some are open for everyone regardless of job or education, others are sector specific which means working in a particular field is a requirement for joining. Some require a specific training.
See information and description of all the Funds.
Switch Unemployment Insurance Fund
If you switch from one unemployment fund to another, the time you accumulated towards the membership requirement and the employment requirement with your previous unemployment fund can be transferred to the new Unemployment Fund if the gap between the two memberships is no longer than one month.
Requirements for entitlement to earnings-related benefit
You are seeking full-time employment and register as unemployed on "Job Market Finland" (tyomarkkinatori.fi).
You must meet the work requirement:
The employment condition is 12 months and is linked to euros earned. Pay subsidy work don't count in the work requirement.
The salary received from the work must be in accordance with the collective agreement, or if the sector does not apply a collective agreement, the full-time salary must be at least 1,430 euros per month (in 2025). Only work subject to insurance can be accepted as an employment condition, i.e. the required social security contributions and taxes must have been properly paid for the work. The employment condition must be fulfilled during a 28-month review period. In some circumstances (for example in case of illness, maternity leave and full-time studies), the review period can be extended by up to seven years.
You accumulate the right to earnings-related unemployment benefit by receiving a gross pay of at least 930 euros per month for 12 calendar months.
The employment requirement could also be accumulated as half-months if the earned income in the calendar month is at least EUR 465 but less than EUR 930. Two halves of an employment requirement month contribute to one full employment requirement month.
Only payments for work while you have also been a member of an unemployment fund counts. You must also have been a member of your unemployment fund for at least 12 months.
Be aware, that the employment condition described above is the new employment condition that came into force on September 2, 2024, due to a legislative change.
Weeks of employment condition you have accrued before September 2, 2024 are converted into months of employment condition under the new law using a conversion factor.
Suspension period in case of self-induced unemployment
If you resign without a valid reason or otherwise cause the termination of the employment relationship, you are not entitled to earnings-related unemployment benefit for 45 days after the end of the employment relationship.
The suspension period (karenssi), will not be imposed if you had a valid reason for resigning from work.
Are there special rules for new graduates?
No, but if you have studied full-time, the period in which work is counted (28 months) to meet the work requirement can be extended by the number of months in which you have studied.
Requirements for entitlement to KELA Basic allowance
You are seeking full-time employment and register as unemployed on "Job Market Finland" (tyomarkkinatori.fi).
You must meet the same work requirement as for the earnings-related benefit (see above). However you do not need to be member of an Unemployment Insurance Fund.
The amount of unemployment benefit
KELA basic unemployment allowance
EUR 37.21 per day. This is a flat-rate benefit and therefore the same for all unemployed individuals, regardless of previous income.
Benefit from Unemployment Insurance Fund
The amount of your earnings-related benefit consists of a basic component, which equals the basic unemployment allowance paid by Kela, and an earnings-related component, which is calculated on the basis of your wage income for at least 12 months prior to unemployment. The months used to determine the daily benefit must meet the employment condition (see above).
Your income will be reduced by the holiday bonus and holiday compensation as well as the employee’s pension contribution (TyEL) (3.54 % in 2025).
The earnings-related component is 45% of the difference between your daily wage and the basic component. If your monthly salary is more than EUR €3,534.95, you will get additional 20% of the pay exceeding €3,534.95.
Example of calculation
In the examples below, the calculations are based on a salary of €3,584.51 as a basis for the daily benefit.
| Basic component | €37.21 |
| Earnings-related component up to income limit | 45% x [(monthly pay up to €3,534.95 / 21.5) - basic component €37.21] = €57.24 |
| Earnings-related component exceeding income limit | 20% x [(€3,584.51 - €3,534.95) / 21.5] = €0.46 |
| Total | €37.21 + €57.24 + €0.46 |
| Amount of full earnings-related allowance | €94.91 |
Maximum and minimum benefit
The full earnings-related benefit can be no more than 90% of the daily pay on which the daily benefit is based. As the only country in EU the Finnish system does not cap the benefit amount. The benefit can not be lower than the basic component.
Grading of earnings-related daily benefit
| Full earnings-related benefit for first 40 days | 1st staggering, 41-170 days | 2nd staggering, 171 days |
| 100 % | 80 % | 75 % |
However, the unemployment benefit amount will always be at least equal to the basic unemployment benefit.
Tax treatment
Unemployment benefits are taxable income in Finland.
The duration of unemployment benefit
The duration period is the same for the Basic Unemployment benefit (KELA) and earnings-related benefit.
In both cases the unemployment benefit is paid for a maximum of 400 days. If you have worked less than 3 years, the longest you can get unemployment benefit is 300 days.
If you are at least 58 years old and have been in work for at least 5 years out of the previous 20 years, you are eligible to receive a maximum of 500 days daily benefit.
Insurance periods and work from other EEA countries
Whenever you have to claim unemployment benefit from your Unemployment Fund, they will also take into account any insurance periods you have completed in other countries in assessing whether you meet the 12 months membership period requirement. This applies to EU Member States and to Switzerland, Liechtenstein, Norway and Iceland.
The Unemployment Insurance Fund as well as KELA will also take into account work performed in EU/EEA in assessing whether you meet the work requirement.
However, in order for the employment (or insurance periods) in the other country to be included in the Finnish work requirement, you must have worked in Finland for at least 4 weeks after the employment abroad ended. See more in the section "Finnish unemployment benefits in EU context" below or read our article "EU social security coordination".
How to apply for unemployment benefit
Apply through KELA for basic unemployment benefit or through your Unemployment Insurance Fund for earnings-related unemployment benefits.
If you do not meet the requirements
You may claim Labour market subsidy (työmarkkinatuki). Labour market subsidy is an assistance scheme for jobseekers who can not meet the work requirement for the unemployment insurance and KELA or who have already been paid unemployment benefit for the maximum period. Labour market subsidy is a flat-rate benefit financed by taxes.
Look for job in EU with unemployment benefits
You maintain the right to basic unemployment allowance paid by Kela or earnings-related unemployment allowance paid by the unemployment fund for a maximum of 3 months, if you go to look for work in another EU or EEA country or Switzerland.
You need a PD U2 certificate from your Unemployment insurance Fund or Kela.
Finnish words
Unemployment Insurance = Työttömyysvakuutus
Unemployment Insurance Fund = Työttömyyskassa
Unemployment benefit = Työttömyysetuudet
This page was last updated on April 24, 2025.
- Unemployment insurance in Europe →
Unemployment Insurance in Finland
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⇒EU social security coordination
⇒Unemployment Insurance in the Nordic countries
Finnish unemployment benefits in EU context
- Transferring periods of work and insurance from another EEA CountryAs an EU citizen you can transfer acquired rights from Unemployment Insurance between Finland and other EU/EEA contries and vice versa.
Finland has as one of only few EU countries (Belgium and Denmark are the others) a requirement saying that you need to work 1 month or been self-employed for at least four months in Finland before you can use your PD U1 document.
Also there is a requirement saying that you must become member of an finnish unemployment insurance fund within 1 month after moving to Finland or after the job ended in the other EU/EEA country.
And you have to use a PD U1 Form or the countries involved must be able to exchange the information via EESSI. Read more here..
If you come from Sweden or Denmark who have similar voluntary unemployment fund systems, work can only be taken into account if you have been member of an voluntary unemployment fund in Sweden or Denmark when your work was done. If you only had the right to basic unemployment benefit from Alfa-kassan in Sweden, it can not be taken into account by the Unemployment Insurance Fund in Finland.
If you come back to Finland from another nordic country within 5 years there will be easier access to use the aggregation rule. Read more in this article.
In all cases your unemployment benefit from the finnish Unemployment Insurance Fund is calculated (only) from your earnings in Finland. - Transferring unemployment benefitsIf you are an EU citizen you can under certain conditions go to another EU country to look for work and continue to receive your unemployment benefits from Finland. And you have to use a PD U2 Form. Read more here..
- Unemployment benefits coverageAccording to OECD Finland has a net replacement of previous in-work income of 57 percent after 2 months unemployment. For all EEA countries the coverage is between 33 to 86 percent. Read more here..
- Have residence in another EU country but work in Finland?EU citizens working in Finland must as a generel rule be insured against unemployment in Finland. Be aware that earnings-related unemployment insurance is voluntary in Finland, and requires that one become member of an Unemployment Insurance Fund ("Työttömyyskassa"). However workers in Finland may be insured by the country of residence if they are posted to Finland or work in two or more EU/EEA countries at a time. In these situations you can not your self decide where to have unemployment Insurance, but you (or your employer) must apply for a PD A1 document which states in which country you are covered by social security, including Unemployment Insurance. Special rule also apply for cross-border workers ("frontier workers").
- Third-country Nationals working in FinlandNON-EEA citizens can become member of an Unemployment Insurance Fund ("Työttömyyskassa") in Finland, if they have a residence permit with a right to work in Finland.
In order to get earnings-related Unemployment benefits your work-permit must not be limited to a specific employer, and you must be able to meet the requirements (see above). Other restrictions on the right to work, such as how much you are permitted to work or the fields and tasks you are allowed to work in will normally not prevent you to become member of an unemployment fund and receive earnings-related unemployment benefits. It makes no difference whether the residence permit is temporary or permanent in terms of becoming member of an unemployment fund and eligibility to earnings-related unemployment benefits.
Your citizenship does not affect your right to Kela benefits, including a basic flat-rate unemployment benefit.
However, in order to get unemployment benefits from Kela you must have a residence permit granted by the Finnish Immigration Service (migri.fi), if you are required to get one, and you must meet the work requirement of 12 months work.