Finnish unemployment benefits too complex for gig and zero-hour workers

Finland’s unemployment benefit system is so complicated and restrictive that many workers on zero-hour contracts or commission-based pay are giving up on applying, according to a report by national broadcaster Yle.

Viivi Nenonen, a resident of Lahti, holds four zero-hour contracts—working on a ship, in restaurants, and at a ticket booth—but her unpredictable earnings make it impossible to qualify for unemployment support. After a lengthy application process in February, she received just €60 in benefits. When her hours increased, her pay exceeded the threshold for assistance.

“I won’t go through this bureaucratic nightmare again,” Nenonen told Yle. She prefers the flexibility of zero-hour work but questions how she would manage if her savings run out. “There are no full-time jobs available—only part-time, gig, or zero-hour contracts,” she said.

The system’s complexity has led others, like Ronja Karkinen from Kirkkonummi, to reject job offers over fear of benefit penalties. Karkinen turned down a commission-based sales role after learning that even resignation or dismissal during a trial period could trigger a benefit suspension.

Finland’s centre-right government, led by Petteri Orpo, has tightened job-search requirements and benefit sanctions while merging unemployment allowances. Critics, including trade unions, argue these changes—such as removing the “protection portion” of benefits—have made part-time workers worse off. Nearly one in five Finnish employees now works part-time, with 80% wanting more hours, according to Statistics Finland and the SAK labour confederation.

Under current rules, part-time or gig workers can receive adjusted unemployment benefits if they earn no more than 80% of full-time pay in their field. However, half of all earnings reduce the benefit amount—meaning a €1,000 monthly wage cuts support by €500. Since May, a universal basic allowance has replaced some existing benefits.

Nenonen, who relies on summer savings to cover winter expenses, has stopped applying for benefits entirely. “The obligation to apply for jobs that don’t exist just to qualify for adjusted support doesn’t make sense,” she said.