03.05.2022

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 days

The 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 model

The 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 would be covered by the new change security model if
  •  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.
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

According to the government's proposal, the change security allowance would correspond to one month's salary. The change security allowance would be paid by unemployment funds and Kela. The amount of the benefit would be the same regardless of whether it be paid by the unemployment fund or Kela. Members of unemployment funds would apply for change security allowance from their own unemployment fund and others would apply for it from Kela. The unemployment fund would pay 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. You could get the change security money if you are covered by the new change security model. However, unemployment would not be necessary to receive a change security allowance. The change security allowance would be paid even if you were immediately re-employed to another employer.  

Change security training

The government proposes that the TE Office could 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 would be voluntary and could be refused without the loss of unemployment security.  

More information

You can find more information about the removal of additional days and the change security package in the government proposal, which you can find on parliament's website.