The government proposes changes to unemployment security for the elderly
The government has submitted a proposal to the parliament to phase out the additional days of unemployment allowance for those close to the age of retirement. At the same time, a new change security model would be taken into use. Please note that these legislative amendments are not yet in force. We will provide updates when we hear more about the progress and content of the reform.
Discontinuation of additional daysThe age limit for the additional days of unemployment allowance has been phased out according to the year of birth. The government proposes that the additional days of unemployment allowance be phased out so that those born in 1965 or later are no longer entitled to additional days. For those born in 1963 and 1964, the age limit for additional days would be increased by one year. Currently, you can receive earnings-related allowance until retirement on additional days, even if the maximum contribution period has been reached if
- you were born between 1955 and 1956 and will be 60 years old before the maximum payment period is reached
- you were born between 1957 and 1960 and will be 61 years old before the maximum payment period is reached
- you were born in 1961 or later and will be 62 years old before the maximum payment period is reached.
New change security modelThe government proposes that a new change security package be created in connection with the phasing-out of the right to additional days. Those covered by the new change security model would be entitled to
- a change security allowance corresponding to 1 month's salary,
- a 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.
- you are dismissed 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, and
- you have registered with the TE Office as a job seeker within 60 days of the dismissal.