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Unemployment security for ageing people

The right to extended allowance, employment obligation and the change security model may be matters concerning an ageing jobseeker.

Right to extended allowance

Elderly jobseekers may have the right to extended earnings-related allowance. This means that you may be eligible for earnings-related allowance after the normal maximum period until the end of the month in which you reach the age of 65. If you retire before you turn 65, your right to an allowance will end at the start of retirement.

The right to extended allowance depends on your birth year and when your allowance period ends.

The right to extended allowance arises if:

  • you were born between 1957–1960 and have turned 61 before the end of the maximum period,
  • you were born between 1961–1962 and have turned 62 before the end of the maximum period,
  • you were born year 1963 and have turned 63 before the end of the maximum period,
  • you were born year 1964 and have turned 64 before the end of the maximum period,

and you have been employed for at least five years during the past 20 years at the end of your allowance period.

The right to extended allowance is gradually being abolished and a change security model will be introduced. You can read more about the change security model and the change security money via the link below.

The fund will determine your right to extended allowance when processing your normal application. Therefore, there is no need to apply for a right to extended allowance with separate forms.

Certificate of extended allowance for the pension application

The unemployment fund is involved in the handling of a pension matter only by providing the certificate of extended allowance that is required for the pension application. The certificate will be issued upon request, and it may be issued only if you have been paid the extended allowance, meaning that earnings-related allowance has been paid after the maximum period has been exhausted.

The certificate of extended allowance can be issued after the unemployment fund has paid earnings-related allowances for at least one day in the month prior to the start of the retirement. For example, if you apply for old-age pension starting on 1 October, the unemployment fund can issue the certificate if an earnings-related allowance has been paid in September. The application for an earnings-related allowance for the previous month can then be sent in two instalments, for example first from 1 to 9 September, so the certificate can be issued, and then from 10 to 30 September.

However, if you are being paid adjusted earnings-related allowance, we can’t process your application and write the certificate of extended allowance until your adjustment period has ended. For example, if your application and adjustment period is a calendar month, we can process your application from 1.9 – 30.9 and write the certification 30.9. at the earliest.

Employment obligation

If a jobseeker aged over 60 years enrols in a programme aimed at promoting employment on the basis of the TE Office’s statutory obligation under chapter 11, section 1, subsection 3 of the Act on Public Employment and Business Service to offer such opportunities, the period of time that the jobseeker spends attending the programme can count towards satisfying the employment condition and an earnings-related allowance can be paid for the duration of the programme regardless of whether or not the jobseeker has used up their maximum allowance period.

Jobseekers aged 57 and over can also be paid an earnings-related allowance for the duration of any work they perform based on the employment obligation regardless of whether or not they have used up their maximum allowance period, but such work only counts towards satisfying the employment condition after the age of 60 years.

Change security model

A new model called ‘change security’ is being introduced for persons aged 55 and over as of the beginning of 2023. The change security package includes a change security allowance, change security training and certain other benefits. The change security model covers all those terminated on financial or production-related grounds on or after 1 January 2023.

You can read more about the change security allowance here:

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