Did you know? Past part-time work can still affect your allowance
During the summer, some applicants for earnings-related allowance may be surprised when they receive a decision: why have earnings earned before unemployment reduced the amount of the allowance? In this article, we go through situations in which the allowance may be paid as adjusted, even though the work has already completely ended.
Which income affect the amount of the earnings-related daily allowance?
In the earnings-related daily allowance, income is adjusted, meaning the following types of income reduce the amount:
- income from part-time work
- income from occasional full-time work lasting up to two weeks
- income from part-time self-employment or other part-time work carried out outside an employment relationship
Full-time work income is not adjusted, meaning it does not reduce the amount of the earnings-related daily allowance. However, holiday compensation from full-time work is subject to allocation, and there is no entitlement to earnings-related allowance during the allocation period. You can read more about the allocation of holiday compensation in the section Entitlement to earnings-related daily allowance.
The income mentioned above may also affect the amount of the earnings-related daily allowance even if the work was carried out alongside full-time employment. The decisive factor is when the wages are paid.
When does income affect the earnings-related daily allowance?
Income from part-time work and occasional work generally affects the amount of the earnings-related daily allowance based on the payment date. This means that the income reduces the allowance for the adjustment period in which the salary payment date falls.
The adjustment period refers to the time frame during which events affect the earnings-related allowance and its amount. The length of the adjustment period is always either four calendar weeks or one month. This also applies when the initial application is submitted for a shorter period. In such cases, the adjustment period may extend to a time before unemployment began, meaning that income paid before the start of the application period may also be taken into account.
All adjustable income paid during the adjustment period reduces the amount of the earnings-related daily allowance. Each applicant’s adjustment period is determined when the initial application is processed.
Example of an adjustment period
Niilo becomes unemployed from 1 June 2026. He submits his first application for earnings-related daily allowance on 14 June 2026 for the period 1–14 June 2026.
In Niilo’s case, the adjustment period is set from the 15th of one month to the 14th of the following month. This means that when he applies for the period 1–14 June 2026, his adjustment period is 15 May 2026 – 14 June 2026.
Niilo has been doing part-time work alongside full-time employment, and the wages for this work are paid on 31 May 2026. This income will be adjusted in the earnings-related daily allowance, meaning it will reduce the amount of the allowance for the entire application period. Niilo will therefore be paid an adjusted allowance for 1–14 June 2026.
(Note: In this example, no waiting period was applied to Niilo, and he did not have any holiday compensation subject to allocation.)
Please note that this is only one example of how the adjustment period may be determined. Your own adjustment period can only be confirmed once your application has been processed.
Income from part-time self-employment generally affects the earnings-related daily allowance based on the most recent confirmed personal tax assessment. If the income is invoiced through a billing service, it is adjusted according to the payment date recorded in the Incomes Register.
How does income affect the earnings-related daily allowance?
Half of the adjusted income reduces the amount of the allowance. In other words, each euro reduces the earnings-related daily allowance by 50 cents.
In addition, there is a maximum limit for the adjusted allowance. This means that the combined total of the adjusted income and the adjusted allowance cannot exceed the salary on which the allowance is based.
The salary on which the allowance is based is the amount calculated from your earnings when you met the employment condition, and it is used to determine the amount of your earnings-related daily allowance.
Example of the amount of an adjusted daily allowance
Inka applies for earnings-related daily allowance for the period 1–31 July 2026. She is paid wages from part-time work on 15 July 2026 in the amount of €540.00. Inka’s full, non-reduced daily allowance is €85.00 per day.
Half of the adjustable income reduces the amount of the full earnings-related allowance. In Inka’s case: €540.00 × 0.5 = €270.00 per month, which equals €270.00 / 21.5 = €12.56 per day.
Inka’s adjusted daily allowance is therefore: €85.00 − €12.56 = €72.44 per day.
There are a total of 23 payment days in July, so Inka will be paid adjusted allowance as follows: 23 × €72.44 = €1,666.12 (gross)
Example of the maximum amount of an adjusted daily allowance
Tiia applies for daily allowance for the period 1–30 June 2026. In her case:
- the salary on which the allowance is based is €3,000 per month (calculated when Tiia last met the employment condition before becoming unemployed)
- the full daily allowance is €83.26 per day
She is paid €2,500 in wages from part-time work on 15 June 2026, which will be adjusted.
If the maximum limit rule for adjusted allowance did not apply, the part-time wages would reduce the full allowance by: €2,500 × 0.5 = €1,250.00 per month, or €58.14 per day.
This would result in an adjusted allowance of: €83.26 − €58.14 = €25.12 per day, or €540 per month.
However, the adjusted allowance and the adjusted income together exceed the salary on which the allowance is based (€540 + €2,500 = €3,040 > €3,000). In this case, the maximum limit rule applies, and the adjusted allowance can be paid up to: €3,000 − €2,500 = €500 per month, or €500 / 21.5 = €23.26 per day.
The adjusted daily allowance is therefore €23.26 per day.
Read more about adjusted daily allowance
Part-time work and adjusted daily allowance
Take a closer look at how earnings from part-time and occasional work affect the amount of your earnings-related daily allowance.
Read more