Unemployment security

Unemployment security provides unemployed jobseekers with the financial means to seek work and to improve their chances of finding work. There are three types of unemployment benefits in Finland: earnings-related allowance, basic daily allowance and labour market subsidy.

The employment authority issues a labour policy statement on the jobseeker’s right to unemployment benefit. The labour policy statement pertains to the labour-policy prerequisites of the benefit. The employment authority submits the labour policy statement directly to the party paying the unemployment benefit (unemployment fund or Kela).

The unemployment funds and Kela decide on other prerequisites for granting the unemployment benefits, make the payment decisions and transfer the benefits to the recipients.

Management, steering and development of the labour-policy aspects of the unemployment security are the responsibility of the Ministry of Economic Affairs and Employment. Management, steering and development of the matters concerning the income security are the responsibility of the Ministry of Social Affairs and Health.