Difference between labor subsidy and unemployment allowence

jogger · Post by **jogger** » Tue Oct 21, 2014 12:11 pm

Hello

I am a non EU citizen.
I am on an A Type Residence permit for work but my employment will be terminated in a month or two. I am in a situation where I might be able to fulfil the condition regarding previous employment.
http://www.kela.fi/web/en/eligibility_c ... employment
Can someone guide me about the difference between unemployment allowance and labour market subsidy, since the payment amount for both is same.
http://www.kela.fi/web/en/basic-unemployment-allowance
http://www.kela.fi/web/en/labour-market-subsidy

Can there be a situation that I don't qualify for labour market subsidy.

Will taking unemployment benefits have an effect if I apply for my next residence permit, although I will have job by then.

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Rip · Post by **Rip** » Wed Oct 22, 2014 6:36 am

jogger wrote: Can someone guide me about the difference between unemployment allowance and labour market subsidy, since the payment amount for both is same.

There is still some sort of "needs based" element in labor market subsidy, but it seems to really only effects now if you have significant capital income. I think in most cases the difference is now non-existent (there used to be a rule that the income of your spouse had an direct effect, in which case if your husband/wife had a moderately well paid job, you were ineligible for labor market subsidy yourself - but that was changed recently)

Will taking unemployment benefits have an effect if I apply for my next residence permit, although I will have job by then.

To best of my understanding, it will NOT have an effect.

I guess if you do find a new job, this time you'll join an unemployment fund?

jogger · Post by **jogger** » Wed Oct 22, 2014 10:07 am

Thanks for the reply.
I have been in Finland for 4 years, so can't go for integration plan.

Also since my residence permit have my profession on it so I can't have labour market subsidy.

Pursuivant · Post by **Pursuivant** » Wed Oct 22, 2014 10:42 pm

You must first realise that "unemployed" is a legal term and got nothing to do being laid off work, until you get accepted and entered as "unemployed" in the system

Unemployment benefit is basically when you are on your union/ytk fund payments for the 500 days. Of course, if you are entitled to them which requires... Oh they have the small print on KElA pages, worked so and so long with salary over x and whatnot. The unemployment benefit is really not worth much and hasnt been checked with inflation much as the bulk of the money comes off the fund and only an idiot wouldn't have it set up. Then the labour market subsidy is for the poor buggers who don't qualify for unemployment either before the 500 days or after the 500 days. Like fresh graduates. So they get this but at the same time are put on "courses" to enhance their employability. A bit like the integration allowance which is a labour subsidy with adifferent name but the same principle.

Rip · Post by **Rip** » Thu Oct 23, 2014 3:49 am

jogger wrote: I have been in Finland for 4 years, so can't go for integration plan.

Also since my residence permit have my profession on it so I can't have labour market subsidy.

Did you visit both (and this order) TE office and KELA and got these replies?
What you said sounds it could be true, but not obviously so.

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