1. The maximum payment period will be shortened from 500 days to 400 days or 300 days depending on the work history of our unemployed member.
The amendment applies to the maximum payment periods of daily allowance, if the first day the benefit is paid for is after 1.1.2017.
- Payment periods that have started in year 2016 or earlier and are still unfinished, will not be shortened based on this amendment.
The amendment applies to situations where our member applies for the unemployment allowance for the very first time and also to situations where our member meets the employment condition again.
- The maximum payment period is 300 days if our member has at most 3 years of work history when meeting the employment condition or when renewing it.
- The maximum payment period is 400 days if our member has over 3 years of work history when meeting the employment condition or when renewing it.
- The maximum payment period is 500 days if our member has turned 58 years before meeting the employment condition and has at least 5 years of work history during the last 20 years.
The amendment does affect members in Teachers’ Unemployment Fund as the current maximum payment period of 500 days in future applies only to members who have turned 58 years. The most typical maximum payment period will probably be 400 days.
On the other hand, our members do typically meet the employment condition over and over again after the maximum payment period has started. This is made possible by being employed temporarily or part-time, substituting and/or working between lay-off periods. Because of being re-employed, our members have good opportunities to switch from maximum payment period of 300 days to 400 days when meeting the employment condition again, and eventually even to 500 days.
2. The liability/waiting period will be extended from five weekdays to seven.
The amendment applies to situations where the first accumulating day is 1.1.2017 or after.
The amendment does affect members in Teachers’ Unemployment Fund as situations when the liability period is drawn, nor how time required is counted, were not changed in the amended regulation. Liability periods that currently are 5 weekdays, will be 7 weekdays in the future. The liability period is defined as being completely unemployed, so if you are working part-time, the liability period is accumulated more slowly than when you are completely unemployed.
Lengthening of the liability period will have an effect especially for those members laid off, and whose lay-offs are to be carried out as individual days. The days making up the personal liability period must accumulate during eight successive calendar weeks. We recommend that those workplaces where lay-offs are to be reality in 2017, should check, whether the liability period can be accumulated during 8 calendar weeks after the amendment of the legislation.
3. The entitlement
to receive an increased earnings-related component based on a long work
history will be revoked.
The amendment applies to situations where the
employment terminates 1.1.2017 or after.
- If the employment terminates by 31.12.2016, the
increased earnings-related component based on long employment history can still
be paid within the transition period ending on 30.6.2017. - The amount of increased component will be cut
immediately starting from 1.1.2017 as is the increased component paid during
employment promotion measures.
This increased component is not very common among the members of
Teachers’ Unemployment Fund as it does not apply to situations of temporary
employment ending, even if one has a long employment history. Although the
change can be significant to the economy of a singular member, it does not greatly
affect our members as a group.
4. The increased component paid for the duration of employment promotion measures will be cut from 58/35% to 55/25%.
Employment promotion measures affected are for example self-motivated/independent studies and labour market training, approved by the TE Office.
There are still Government proposals pending in the Parliament. These proposals, if approved, will have effect upon entitlement to earnings-related unemployment allowance, the amount of the allowance, and the labour market political conditions of the allowance. We will inform on these changes later as soon as the processing in the Parliament has completed.
In particular, about the amendments in the amount of allowance: please notice that, at the moment, the allowance calculator in the Openetti service is functioning only according to the current legislation and rules of calculation. Because of this the calculator will give too high an estimation for the daily allowance for year 2017.