Changes to the adjustment of earnings-related unemployment allowance from 1 April 2019
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The basis for the adjustment of earnings-related unemployment allowance will change in the beginning of April 2019. The biggest change pertains to people who are working part-time, in full-time employment of no more than two weeks in duration, who have income from entrepreneurial activities, are self-employed, or who are working reduced hours due to temporary lay-offs.
- Starting in April, any salary earned for work will impact the amount of the earnings-related unemployment allowance at the time when the salary is paid. The date of the work undertaken for the salary no longer makes a difference for the adjustment of earnings-related unemployment allowance. The date of the payment of the salary will determine the period of adjustment.
- You are eligible for adjusted earnings-related unemployment allowance if you have earnings from part-time work, full-time work of no more than two weeks in duration, entrepreneurial activities or self-employment.
- The change entered into force in the beginning of April and pertains to all applications for adjusted earnings-related unemployment allowance which refer to a period falling partially or entirely after 1 April 2019.
- The change also applies to people whose working hours have been reduced due to temporary lay-offs. However, the payment of the adjusted unemployment allowance will continue as before if the working time has been reduced on a weekly basis. The type of reduction to the working hours is determined in the lay-off notice.
The new rules will generate new situations which you should be aware of:
- In some cases you may be eligible for full earnings-related allowance despite working part-time.
- In other cases, there may be a period when you are not eligible for unemployment allowance despite being unemployed.
- A single period of work may be used to fulfil the activity requirement twice.
- You are eligible for adjusted earnings-related unemployment allowance if your working hours are no more than 80% of full-time employment, but your hours may be calculated based on your hours during the previous month. In such cases, an application from a person working 80% of full-time employment may be rejected. Read more about how working hours are calculated from the link below.
The working requirement will be monitored as previously. Read more about the upcoming change.