Unemployment benefit change splits part-time workers into unequal positions

A reform removing the earnings protection threshold for unemployment benefits has led to fewer part-time workers claiming adjusted earnings-related allowances, according to a survey by Finland’s YTK Unemployment Fund.

The change, which eliminated a €300 monthly earnings exemption, has created financial disparities among unemployed individuals working part-time, YTK reports. Previously, unemployed people could earn up to €300 per month without affecting their benefits.

YTK’s statistics show a decline in applications for adjusted earnings-related allowances since the reform, indicating reduced part-time work. However, CEO Auli Hänninen notes that other labour market shifts may also contribute to this trend.

Survey reveals mixed financial impacts
A YTK member survey conducted in April 2026 found that nearly half of respondents continue working as much as possible, unaffected by the reform. About one-third still work part-time despite financial losses, while 15 percent now find part-time work unprofitable and further limit their hours.

The most vulnerable group—just under 9 percent—faces significant income fluctuations, where each hour worked increases financial risk.

Hänninen acknowledges that while part-time work remains financially viable for many, the reform has weakened the economic position of some groups, particularly those with irregular or limited work opportunities.

The survey included responses from 2,643 YTK members.