Unemployment allowance for additional days to be replaced by a change security model for over 55s
The payment of unemployment security for additional days will be phased out to be replaced by a change security scheme for those aged 55 or over. The legislative amendments will enter into force at the beginning of 2023.
The earnings-related unemployment allowance is usually paid for a maximum of 300–500 days. The additional allowance days (the unemployment path to retirement) refer to the right to earnings-related unemployment allowance after this maximum period. The right to additional allowance days requires fulfilling the age limit criteria before reaching the maximum days for unemployment allowance. The age limit is currently between 61 and 62 years, depending on the year of birth.
With the legislative amendment, the additional allowance days will end in stages. The age limit for additional allowance days will be raised by one year for those born in 1963 and 1964, and the possibility of additional allowance days will be completely removed for those born in 1965 and later.
This means that the reform will affect the right to earnings-related unemployment allowance from 2025 onwards, when those born in 1963 will reach the current age limit of 62 years for additional allowance days. The payment unemployment allowance of additional days will end in 2030.
|Year of birth||Age limit for additional allowance days after the change||Amendment proposed by the Government|
|1957–1960||61 years||No change|
|1961–1962||62 years||No change|
|1963||63 years||Age limit raised|
|1965||No right to additional allowances days||Right to additional allowance days removed|
Change security scheme for people aged 55 and over
The new change security scheme for people aged 55 and over will be introduced from the beginning of 2023. Those covered by the change security scheme are entitled to a change security allowance, training and extended re-employment leave:
- the change security allowance corresponds to one month’s salary
- the change security training lasts up to 6 months, and the value corresponds to a salary of up to 2 months
- the re-employment leave is 5 days longer than normal
In order to be covered by change protection, a person must fulfil the following criteria:
- made redundant for production-related and economic reasons (the expiry of a fixed term contract does not meet this condition) on or after 1 January 2023.
- 55 years of age or older by the time of dismissal
- has been employed by the same employer for at least 5 years when their employment is terminated
- registered as a jobseeker with the TE Office within 60 from the termination of the employment.
The date of termination means the date on which the notice of termination was given. Therefore, if the notice period is long, you must register with the TE Office even before the start of the unemployment.
The change security allowance is paid by unemployment funds and Kela. The amount of the change security is the same regardless of whether the benefit is paid by a unemployment fund or Kela. The change security allowance is paid from the unemployment fund even if the membership in the unemployment fund has started just before the termination and the person has not been a member of the fund for a sufficient period of time to receive earnings-related unemployment allowance from that unemployment fund.
The change security allowance does not affect unemployment security or other benefits, with the exception of social assistance and it is also not required for the person to be unemployed. The allowance is paid even if the person is immediately re-employed by another employer.
The change security training is provided by the TE Office or the ELY Centre. Participation in change security training is voluntary and it can be refused without loss of unemployment security.