News

04.07.2022

Additional days of unemployment security to be removed — replaced by change security model for persons 55 years and older

The age limit for additional days of unemployment security increases for those born between 1963 and 1964. The additional days are completely eliminated for those born in 1965 and after. A new change security model is coming for those aged 55 and over. The amendments to the law will come into force on 1 January 2023.  

Additional Days of unemployment security to be removed

Earnings-related allowance is usually paid for a maximum of 300–500 days. Additional days (meaning a long period of unemployment) means the right to earnings-related allowance after this maximum period. The age limit for the additional days of unemployment allowance has been phased out according to the year of birth. The age limit is currently 61—62 years depending on the year of birth. With the amendment to the law coming into force on 1 January 2023, the additional days of unemployment allowance will be phased out so that for persons born between 1963 and 1964, the age limit for additional days will be increased by one year. The right to additional days is completely removed for those born in 1965 and after. The reform will therefore affect eligibility for earnings-related allowance in 2025, when those born in 1963 reach the current age limit of 62 years for additional days. Paying for additional days will end altogether in 2030.  
Year of birth Age limit for additional days after change Effect of law amendment
1957–1960 61 years no change
1961–1962 62 years no change
1963 63 years age limit increases
1964 64 years age limit increases
1965 no right to additional days right to additional days is removed
 

Change security model for those aged 55 and over

The new change security model for those aged 55 and over is introduced 1 January 2023. Those covered by the new change security model are entitled to the following:
  • change security allowance corresponding to 1 month's salary,
  • change security training of up to 6 months, the value of which would be equivalent to a maximum of 2 months' salary, and
  • 5 days longer than usual for employment leave.
To be covered by the change security model, it is required that:
  • your contract was terminated for production and financial reasons on or after 1 January 2023,
  • you have reached the age of 55 before termination,
  • you have been employed by the same employer for at least 5 years by the time of termination
  • you have registered with the TE Office as a job seeker within 60 days of termination.
Please note that the time of termination refers to the date on which the notice of termination was given. If your notice period is long, you must register with the TE Office before your unemployment starts.  

Change security allowance

Change security allowance corresponds to 1 month's salary. The change security allowance is paid by unemployment funds and Kela. The amount of the benefit is the same regardless of whether it is paid by the unemployment fund or Kela. Members of unemployment funds apply for change security allowance from their own unemployment fund and others apply for it from Kela. The unemployment fund pays the change security allowance to those who were members of the fund on the day of the dismissal, even if the duration of the membership was not sufficient to receive earnings-related allowance. Obtaining change security allowance does not require unemployment. Change security allowance is paid even if you were immediately re-employed to another employer. Change security allowance does not affect unemployment cover or other benefits except income assistance.  

Change security training

TE Office or ELY Centre can acquire training of up to 6 months for a person covered by the new change security model, the value of which would correspond to a maximum of 2 months' salary. Participation in change security training is voluntary and can be refused without the loss of unemployment security.