Amount of earnings-related daily allowance
Earnings-related daily allowance consists of the basic daily allowance and an earnings-related component based on wage income. The amount of the allowance is calculated from wages earned before unemployment, for at least 12 months.
How is the amount of earnings-related daily allowance calculated?
In calculating the daily allowance, taxable wage income subject to withholding tax is taken into account. The wage income considered is the so-called established wage income, which includes, for example, hourly pay, fringe benefits, and various supplements. Holiday bonuses and compensations are not included when calculating the amount of the daily allowance. In addition, a yearly defined unemployment and pension insurance percentage is deducted from the total wage sum, which is 3.83% in 2026 (3.54% in 2025).
Wage income is calculated from at least 12 months of wages that have accrued the 12 calendar months of the employment condition. You can read more about the employment condition in the section “Right to earnings-related daily allowance.”
The earnings-related daily allowance consists of a basic component equal to the basic daily allowance and an earnings-related component based on wage income. The amount of the basic unemployment allowance is €37.21 per day in 2026. The earnings-related component is 45% of the monthly wage income up to €3,534.95, and 20% of the portion exceeding that amount. Below is an illustrative table.
| Benefit | Basic unemployment allowance | Earnings-related component from monthly salary up to 3534,95€ | Earnings-related component on the exceeding portion |
|---|---|---|---|
| Earnings-related daily allowance | 37,21€ | 45% | 20% |
Amount of daily allowance when the monthly salary is below €3,534.95
Example: Monthly salary is 2573,00 €
- Deduct 3.83% from the monthly salary:
€2,573.00 – (0.0383 × €2,573.00) = €2,474.45 - Convert to daily wage by dividing by 21.5:
€2,474.45 ÷ 21.5 days = €115.09 per day - Calculate the daily allowance as follows:
€37.21 + 0.45 × (€115.09 – €37.21) = €72.26 per day
Average monthly allowance:
21.5 days × €72.26 per day = €1,553.51 per month
Amount of daily allowance when the monthly salary exceeds €3,534.95
Example: Monthly salary is 4000,00€
- Deduct 3.83% from the monthly salary:
€4,000.00 – (0.0383 × €4,000.00) = €3,846.80 - Convert to daily wage by dividing by 21.5:
€3,846.80 ÷ 21.5 = €178.92 per day - Calculate the daily allowance as follows:
€37.21 + 0.45 × (€164.42 – €37.21) + 0.20 × (€178.92 – €164.42) = €97.35 per day
Average monthly allowance:
21.5 days × €97.35 per day = €2,093.12 per month
You can estimate the amount of earnings-related daily allowance using the daily allowance calculator available on our website. Please note that the calculator only provides an estimate, and the actual amount of the daily allowance can only be determined during the processing of your application.
Earnings-related daily allowance is taxable income. Read more about the taxation of daily allowance and other benefits in the section “Taxation of benefits.”
Exceptions in the calculation of the earnings-related daily allowance
The amount of daily allowance is calculated in a different way if:
- you have received a partial disability pension. In this case, the salary used as the basis for the allowance is calculated from the wages earned before the pension started, even if the employment condition is met during the pension period.
- you have been on partial childcare leave or job alternation leave. If your employment condition is not fully met after the leave ends, the daily allowance is calculated based on wages earned before the leave.
- you have no period that counts toward the employment condition from 2 September 2024 onwards. In this case, the previous 26-week employment condition still applies. The daily allowance is then calculated from the wages of the weeks that fulfilled the 26-week employment condition.
Staggering of earnings-related daily allowance
Staggering of the daily allowance means that the earnings-related daily allowance decreases if unemployment continues for a long time.
How does the staggering work?
PStaggering reduces the amount of daily allowance in two stages:
- After 40 days of receiving earnings-related daily allowance (about two months), the amount decreases to 80% of the original full daily allowance.
- After 170 days from the start of the daily allowance period (about eight months), the amount decreases to 75% of the original full daily allowance.
Staggering is always calculated from the original full daily allowance amount – the reductions do not accumulate. Once the allowance has been staggered to 75%, it remains at that level until the maximum duration (300/400/500 days) is reached or until the employment condition is met again and the allowance is recalculated.
Example of staggering
Tiina starts receiving full earnings-related daily allowance on January 1, 2026. Her daily allowance is €85.00 per day, and she can receive it for a maximum of 400 days.
Tiina’s allowance is paid as follows:
- For the first 40 payment days (January 1, 2026 – February 25, 2026): €85/day
- For the next 130 payment days (February 26, 2026 – August 26, 2026): €68/day
- For the following 230 payment days (August 27, 2026 – July 14, 2027): €63.75/day
If Tiina meets the employment condition before the 400-day maximum duration is reached, the full daily allowance amount will be recalculated, and staggering will start over.
If Tiina does not meet the employment condition before the 400-day maximum duration, she can apply for unemployment benefit from Kela. She can return to earnings-related daily allowance once she meets the employment condition again. At that point, staggering will restart by paying the full daily allowance for the first 40 payment days, and so on.
When is the amount of earnings-related daily allowance recalculated?
The amount of daily allowance is recalculated when you meet the employment condition again. The allowance is calculated based on the wages that have accrued the employment condition. If the employment condition is met again before the maximum duration (300/400/500 days) is reached, the new full daily allowance amount will be at least 80% of the previous full daily allowance (the so-called 80% protection rule).
Read also
-
Right to earnings-related daily allowance
Eligibility for earnings-related allowance requires, for example, that your job search is active and that… -
Daily allowance calculator
With the daily allowance calculator, you can: Note! The final amount of the daily allowance…