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Removal of increases

Topics

  • Income security
  • Law change
  • YTK

The government has proposed that the increased earnings-related component be abolished from the beginning of next year. In addition, the possibility of paying the mobility allowance at a higher rate would be abolished.

The government has proposed to abolish the increased earnings component of the daily allowance for the period of employment promotion services from the beginning of next year. In future, the unemployment benefit for the period of employment promotion services would therefore be the same as that paid when unemployed.

In addition, the possibility of paying a mobility allowance at a higher rate would be abolished.

The amendment has not yet been approved. We will provide more information as the amendment progresses.

Planned phase-out 2025

According to the Government’s proposal, the increase components would be abolished from 1.1.2025, with no new increase components being granted.

If the employment promotion service started before the law came into force on 1.1.2025, we would be able to pay the increased earnings component. We could continue to pay an increased earnings component for the period of service after the law comes into force until the end of the service, up to a maximum of 200 days in total.

If the service is provided in separate periods so that the periods are not continuous, we would not be able to pay the increased component or the increased earnings component for the period of service that begins on or after January 1, 2025.

Impact

The increase in the daily allowance is made by calculating the amount of the daily allowance using the increased earnings component. The increase is therefore not a fixed amount in euros, but depends on the earnings on which the daily allowance is calculated. The amount of the increase in euros is lower for a lower daily allowance than for a higher daily allowance. For the average full daily allowance, the impact is just under 10 € per day.

You can calculate the exact impact for you using our daily allowance calculator. Calculate the amount of daily allowance with and without an employment support service. The difference between the two will give you the impact in euros.

The impact in euros will therefore depend on the amount of your daily allowance and the period for which the increased daily allowance would be paid. For an average daily allowance and a week’s service, the impact of the abolition of the increase is around 50 €.

You will only be affected if you participate in an employment support service. If the government’s proposal is approved, we will pay the same amount of earnings-related daily allowance for employment promotion services started after the turn of the year as if you were unemployed.

Wages before unemploymentKorRemoval of the increase
1 500-2,99 €/day
1 750-4,11 €/day
2 000-5,23 €/day
2 250-6,35 €/day
2 500-7,47 €/day
2 750-8,59 €/day
3 000-9,71 €/day
3 250-10,83 €/day
3 500-11,95 €/day
3 750-12,89 €/day
4 000-13,45 €/day
4 250-14,01 €/day
4 500-14,57 €/day
4 750-15,13 €/day
5 000-15,69 €/day