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Changes to the employee’s adult education allowance starting from 1 August 2020

Legislative amendments have been proposed on adult education allowance. The proposed changes would enter into force on 1 August 2020. The aim of the amendments is to support harmonisation of studies and work and improve the possibility for employees to use the adult education allowance.

On this page, we have collected information and examples on how the changes will affect current employee’s adult education allowance recipients and new applicants. The content will be updated during the spring.

Enactment of the new legislation would mean changes to the employee’s adult education allowance application process, amount of the allowance, accumulation of months towards the maximum allowance period and study performance requirements.

The changes would not apply to:

  • Entrepreneur’s adult education allowance applicants
  • Employees who have been granted adult education allowance before 1 August 2020 and continue the studies for which the allowance was granted

 

You have received an allowance decision before 1 August 2020

If you have received an allowance decision before 1 August 2020, your decision and the amount of your allowance will remain unchanged. The only change is that, starting from August, when calculating the amount of your allowance, any income will be recognised as income based on the month of its payment, not by its earning.

If you apply for additional allowance to continue studies for which you have previously been granted adult education allowance the old legislation will apply. If you apply for adult education allowance for any other studies after 1 August 2020 the new legislation will apply.

Everyone will be within the scope of the new legislation by 31 July 2024. 

Example: You have received a decision that entitles you to adult education allowance for the period 1 June 2020 – 31 December 2020. The decision was issued on 1 May 2020. The legislative amendments do not affect your decision or the amount of your allowance because the decision was issued before 1 August 2020. If you apply for additional allowance to continue the same studies from 1 January 2021 to 1 March 2021, the old legislation will apply, which means that the amendments do not affect you in this case. However, starting from 1 August 2020 your income will be recognised as income based on the month of payment instead of the earning period.

Amount of allowance and accumulation of months towards the maximum allowance period

The allowance will continue to consist of the basic component (EUR 597.92 in 2020) and the earnings-related component (calculated based on salary). The amount of allowance is based on your income and will be calculated using a new formula. The new formula encourages working while studying.

Yes, in the future either a full month or half a month will be accumulated towards the maximum allowance period each month, depending on how much you work during that month. If you receive more than half of your normal salary during the month, you will accumulate half a month towards the maximum allowance period. If you receive less than half of your normal salary during the month or you receive no income, you will accumulate a full month towards the maximum allowance period.

Example: Your normal monthly salary is EUR 3,000. You work less during a specific month and your salary for that month is EUR 2,000. Because EUR 2,000 is more than half of your normal salary you will only accumulate half a month towards the maximum allowance period. You must complete at least 2 study credits that month.

In the future, you will need to complete either 4 or 2 credits per month of allowance, depending on how much you work during the month. If you receive more than half of your normal salary during the month, you will need to complete at least 2 credits. If you receive less than half of your normal salary during the month, you will need to complete at least 4 credits.

Allowance application, accumulation of months towards the maximum allowance period, amount of allowance and study performance requirements after 1 August 2020

The legislative amendments apply to you if:

  • you apply for adult education allowance for the first time after 1 August 2020; or
  • you apply for adult education allowance for studies for which you have not been previously granted the allowance

In the future, anyone applying for the allowance must first submit an initial application. After this, you can freely apply for the allowance each month retrospectively by submitting a payment application. If you do not apply for payment of the allowance in a specific month you do not need to separately notify the Employment Fund.

We use payroll information from the Incomes Register to support application processing. After receiving your initial application, we will calculate the earnings-related component of your adult education allowance based on information obtained from the Incomes Register. When processing payment applications we recognise other income as income based on the month of its payment. 

Example: You have received a decision that entitles you to adult education allowance for the period 1 June 2020 to 30 September 2020. The decision was issued on 1 May 2020. You want to apply for adult education allowance for completely different studies and you send your application on 1 September 2020. In this case, you are applying for the allowance in accordance with the new legislation and all changes related to the amount of the allowance, the accumulation of months towards the maximum allowance period and study performance requirements apply.

Applying for the allowance

You must first submit an initial application which is used to assess your entitlement to the allowance and its period validity. You can then apply for payment of the allowance each month retrospectively by submitting a payment application.

You may apply for payment of the allowance for any month during the validity of the initial decision. If you do not want to apply for the allowance in a specific month you do not need to notify the Employment Fund.

The initial application is used to assess the salary on which your allowance is based, as well as the following preconditions for the allowance:

  • you have a work history of at least 8 years
  • your current full-time employment relationship has lasted at least one year
  • your studies are within the scope of the allowance
  • you have been granted study leave
  • you are covered by Finnish social security

You can use the initial application to apply for entitlement to the allowance for up to 15 months at a time. Before you can apply for payment of the allowance you must have a valid initial decision.

You can submit your initial application as soon as you have been admitted to study at an educational institution and your employer has granted you study leave. You can submit your initial application up to four months in advance. You can also submit your initial application retrospectively for the previous six months.

Initial applications can be submitted starting from 1 August 2020, when the new legislation on adult education allowances enters into force.

Once you have received a decision on your initial application you may apply for allowance payment. You can submit payment applications retrospectively for full calendar months. Payment applications are used to examine your income and benefits for the month that the application concerns. You can submit payment applications as long as you have remaining days of allowance.

Adult education allowance calculator

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Table showing the amount of allowance

For example, if your regular salary before studies is EUR 3,000 per month, but you work less in a specific month and your income is only EUR 2,000, the amount of adult education allowance for that month would be EUR 503.18.

 
Regular wage before studies, gross income €/month
         
Gross income, €/month           
500
       
1,000

1,500
         
2,000
             
2,500
             
3,000
             
3,500
             
4,000
             
4,500
           
5,000
-   597,92 749,40 950,71 1152,01 1353,32 1503,18 1599,04 1694,90 1790,76 1886,62
250 472,92 624,40 825,71 1027,01 1228,32 1378,18 1474,04 1569,90 1665,76 1761,62
500 347,92 458,60 700,71 902,01 1103,32 1253,18 1349,04 1444,90 1540,76 1636,62
750 222,92 222,92 575,71 777,01 978,32 1128,18 1224,04 1319,90 1415,76 1511,62
1,000 97,92 97,92 437,90 652,01 853,32 1003,18 1099,04 1194,90 1290,76 1386,62
1,250     187,90 527,01 728,32 878,18 974,04 1069,90 1165,76 1261,62
1,500       402,01 603,32 753,18 849,04 944,90 1040,76 1136,62
1,750       167,20 478,32 628,18 724,04 819,90 915,76 1011,62
2,000         353,32 503,18 599,04 694,90 790,76 886,62
2,250         146,50 378,18 474,04 569,90 665,76 761,62
2,500           253,18 349,04 444,90 540,76 636,62
2,750           125,80 224,04 319,90 415,76 511,62
3,000             99,04 194,90 290,76 386,62
3,250               69,90 165,76 261,62
3,500                 40,76 136,62
3,750                    

 

Page updated: 10/9/2020