Due to changes in legislation in autumn 2024, a large part of age-related exceptions to unemployment security will be abolished. In this article, we explain age-related exceptions will still continue to apply.
The maximum period of 500 days, additional days, transition security package and employment condition accrued from pay-subsidised work will continue to provide significant support to unemployed people of certain ages.
Persons over the age of 58 can continue to receive daily allowance for 500 days
Earnings-related unemployment allowance is paid for a maximum of 300, 400 or 500 days. The maximum days which the allowance can be paid depends on your employment history and age.
Persons over the age of 58 who have been employed for at least five years in the last 20 years can still receive the daily allowance for up to 500 days. For a person who is entirely without work, this is the equivalent of about 23 months, or just under two years.
Each paid day deducts one day from the maximum period, and the daily allowance is paid for a maximum of five days per week.
If you receive adjusted earnings-related daily allowance due to part-time work or part-time business activities, for example, the maximum period expires slower.
Once you have been paid earnings-related unemployment allowance for the full maximum period and its payment ends, you will receive a decision on the matter. If your unemployment continues, you can apply for labour market subsidy from Kela. If you meet the employment condition again, you can re-apply for earnings-related unemployment allowance from the unemployment fund. In this case, the maximum period of receiving the allowance is reset.
More information:Duration of daily allowance
Persons born before 1965 are still eligible for additional days of allowance (so-called eläkeputki)
Additional days enable the payment of earnings-related unemployed allowance after the maximum days are up and unemployment continues. Additional days can be paid until the end of the calendar month when you turn 65, on condition that:
- you were born between 1957 and 1960 and turn 61 before the maximum period is up
- you were born between 1961 and 1962 and turn 62 before the maximum period is up
- you were born in 1963 and turn 63 before the maximum period is up
- you were born in 1964 and turn 64 before the maximum period is up
You also need to have worked at least 5 years in the last 20 years and become eligible for earnings-related unemployment allowance as a wage earner.
With the law change that entered into force in early 2023, persons born in 1965 and later are no longer eligible for the additional days.
You do not need to apply for the additional days separately, as the unemployment fund will automatically review the right to additional days when processing your application.
If you need a certificate of the additional days for your pension application, the unemployment fund will provide you with one if you have been paid the allowance for at least one additional day during the month preceding the start of your pension. You can make the request when submitting your application, which you can submit for shorter period than normal depending on the circumstances. Ask the unemployment fund for instructions on how you should proceed.
Persons over 55 are still entitled to a transition security package after termination of employment
The transition security package introduced in early 2023 remains available to terminated employees aged 55 and over.
Benefits of transition security include:
- transition security allowance, which is the equivalent of about one month’s pay
- transition security training, lasting up to 6 months and equivalent to up to 2 months’ pay in terms of value
- extended employment leave by five additional days than normal.
You are eligible for transition security if:
- your employment is terminated on production-related and financial grounds on or after 1 January 2023
- you have turned 55 by the time your employed was terminated
- you were employed by the same employer for at least five years
- you have registered as a jobseeker with the TE Office within 60 days of termination.
Please note that you are not entitled to the transition security allowance if the employment is terminated by mutual agreement between the employee and employer, even if made at the employer’s suggestion.
The date of termination means the date on which you received notice of the termination. In practice, this means that if the notice period is long, you need to register as a jobseeker with the TE Office already during the notice period before your unemployment starts.
The unemployment fund pays the transition security allowance to its members. The TE Office or ELY Centre is responsible for organising transition security training.
Read more: Transition security
Pay-subsidised work counts towards the right to earnings-related unemployment allowance for persons over 60 with certain conditions
Before the legislative change in September 2024, the employment condition could be accrued from pay-subsidised work at a rate of 75% of hours worked, regardless of the employee’s age or work ability. As of 2 September 2024, pay-subsidised work only accrues towards the employment condition if the employee is over 60 and unemployed long-term, or their work ability is reduced.
Things to note when accruing the employment condition from pay-subsidised work:
- Pay-subsidised work accrues towards the employment condition only once the pay-subsidised employment has lasted for more than 10 months.
- Only 75% of the months of employment are accrued towards the employment condition in pay-subsidised work.
- Pay-subsidised work that does not accrue towards the employment condition extends the reference period.
In other words, only pay earned after the first 10 months of pay-subsidised work can be included in the employment condition. For the first 10 months, pay-subsidised work extends the reference period. Following legislative changes, 12 calendar months are required to meet the employment condition. This means that in the future, the number of months required to meet the employment condition from pay-subsidised work is at least 26 months (10 months + 12 months (75%) + 4 months (25%) = 26 months).
The rules for pay-subsidised work described here apply as of 2 September 2024.