Grant funding combined with an employment relationship

Grant funding combined with an employment relationship in terms of unemployment security

 At some universities, researchers with grant funding are offered part-time employment. The combination of grant funding and an employment relationship may impact your unemployment security.

To receive the basic unemployment allowance paid by Kela or earnings-related daily allowance paid by an unemployment fund, an unemployed person must meet the so-called employment condition. From September 2024 onward the employment condition is met if you have received minimum 930 euros of salary per month in an employment relationship, for at least 12 calendar months during a period of 28 months preceding the unemployment. Receiving salary of minimum 465 euros per calendar month one can accrue employment condition worth of 0,5 month. Entitlement to an earnings-related daily allowance can be accrued from a period of, for example, 10 whole months and 4 months calculated as half a month. Entitlement to an earnings-related daily allowance requires that the individual meets the employment condition while being a member in the unemployment fund.

If a person works with a grant fulltime so that no employment condition is accrued according to the new law after September 2, 2024 (minimum 465/930 e/month salary from a period of 12 months), but the person meets the employment condition according to the old legislation, in a situation of possible unemployment after the grant period the old requirement of 26 weeks as employment condition is applied. In such a situation the old requirement of 26 weeks as employment condition is applied until a person starts to accrue new employment condition by receiving salary 465/930 euros per month.

The work does not need to be continuous. Normally the employment condition includes payment months from the previous 2 years and 4 months (28 months). If, for instance, you have been studying, ill, in the military, on civilian service, on family leave, on a grant period, or taking care of a child under 3 years old, work months can be counted for a longer period. In the longest scenario, months from 9 years and 4 months ago can be included. Employment condition for the earnings-related daily allowance can thus be met based on a salaried work in an employment relationship before e.g. a grant period.

Grant recipients who are employed part-time should take into consideration the effects of part-time employment on possible earnings-related daily allowance. An essential aspect is whether the employment contract is made for the required minimum of 465/930 euros salary per month. Employment condition is accrued from all calendar months when a person receives the minimum of 465 euros of salary, which is calculated as half a month for the employment condition; and 930 euros per month is calculated as one month for the employment condition.

The amount of the earnings-related daily allowance is based on actual income from salaried employment. Although the employment condition is met when the monthly salaried income exceeds 465/930 euros, the amount of the earnings-related daily allowance may remain minimal.

When engaging in part-time employment during the grant period, a grant recipient should consider if it is more advantageous to set the working hours to meet the minimum salary of 465/930 euros per month or less than that.  If the requirements for earnings-related daily allowance are met on the basis of a full-time paid employment preceding the grant period, it may be better to contract for less than 465 euros of salary per month. Then, the earnings-related daily allowance will be calculated on the basis of the previous full-time paid work instead of the part-time employment during the grant period. As a result, the amount of the earnings-related daily allowance will be higher in case the income from the previous employment was higher than that of the part-time employment during the grant period.

Due to legislation, the amount of grant funding plays no role in the calculation of the earnings-related daily allowance, which is always based on the salary or wages from paid employment.

Part-time employment has no effect on the amount of the basic unemployment allowance paid by Kela, since it is the same for all benefit recipients. In the event the employment condition is not met on the basis of work carried out before the grant period, contracting for a part-time employment with the minimum of 465/930 euros of monthly salary is advisable in terms of the basic unemployment allowance as it will accumulate the employment condition for the employee. Joining an unemployment fund is recommended because it will affect the future entitlement to earnings-related benefits. It is worth your while to join the unemployment fund even if your part-time employment is minimal.

Those unemployed jobseekers who do not meet the employment condition may apply for labour market subsidy paid by Kela.

In order to receive any form of unemployment security, you must first register as a jobseeker.

Read more about unemployment security.