How does my age affect my earnings-related daily allowance?
There are several exceptions related to earnings-related daily allowance that mainly apply to persons aged 58 and over.
Employment promoting services count towards the working condition
If you are at least 60 years of age, full calendar weeks during which you have participated in employment promoting services organised based on an obligation set for the TE Office can also be counted towards the 26-week working condition. The unemployment fund receives a labour policy statement which states whether the employment promoting service has been organised based on the employment obligation. The employment obligation means that the Employment and Economic Office is obliged to arrange opportunities for jobseekers no less than 60 years of age to participate in work supported by pay subsidy or employment promoting services if the jobseeker has reached the maximum allowance payment period.
If the 26-week working condition consists of both employment and services that promote employment, the amount of earnings-related daily allowance is not recalculated and will be paid at the same rate as before.
Maximum earnings-related daily allowance payment period
Earnings-related daily allowance can be paid for a maximum of 500 days, instead of the usual 400 days, if you are at least 58 years of age when you meet the working condition and have been employed at least five years in the 20 years prior to meeting the working condition.
Additional days – unemployment path to retirement
Payment of earnings-related daily allowance may be extended beyond the maximum payment period once you reach a certain age. The days by which the payment of earnings-related daily allowance is extend beyond the maximum period are called additional days. If you were born between 1957 and 1960 you may be entitled to additional days if you have turned 61 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition. The purpose of additional days is to allow you to transfer from earnings-related daily allowance to old-age pension. If you do not wish to transfer to old-age pension, even if your age would allow it, we can pay you earnings-related daily allowance up to the age of 65.
If you were born in 1961 or later, you may be entitled to additional days if you have turned 62 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition. Earnings-related daily allowance can be paid up to the age of 65 if you have not transferred to old-age pension prior to that. For anyone born in 1965 or later, the age for old-age pension will be over 65 and the maximum period for the payment of earnings-related daily allowance will change in accordance with the age limit for old-age pension, and earnings-related daily allowance will be paid until it is possible to transfer to old-age pension.
Additional days are not reset, and the amount of daily allowance is not reduced
Your maximum earnings-related daily allowance period will not be reset if you are already using additional days (unemployment path to retirement). This means that the maximum payment period is not reset, and the rate of earnings-related daily allowance is not recalculated, even if you perform work that meets the working condition for 26 weeks after the payment of additional days has started.
Additional days mean that you have exceeded the maximum payment period for earnings-related daily allowance (400 or 500 days in practice) and you have transferred to additional days. If the payment of additional days has started and you meet the 26-week working condition your maximum payment period will no longer be reset. The rate of earnings-related daily allowance will also not be recalculated, even if the rate would increase compared to your previous rate. The rate of earnings-related daily allowance is “locked” when you receive payment for your first additional day.
Exceptions that allow the payment of earnings-related daily allowance to a person over the age of 65
As a general rule, earnings-related daily allowance can be paid until the end of the month in which you turn 65. As an exception, earnings-related daily allowance may be paid after you have reached the age of 65 if you have been laid off or have been prevented from working due to weather conditions or collective action. The payment of daily allowance ends when you reach the age of 68 at the latest. Please note that if you receive old-age pension you cannot receive earnings-related daily allowance, even if you are laid off or have been prevented from working due to weather conditions or collective action.
Applying for old-age pension
You can apply for old-age pension using the online services of your employment pension institution. If you are not certain about your pension provider, you can find out by visiting the website Tyoelake.fi. Contact your pension provider if you have any questions regarding matters such as your pension record, future pension or applying for pension.
If your own pension provider does not have an electronic application service available, you can use a paper form or form 7001 which can be filled in online and printed.
Effects of the employment obligation on the rate of earnings-related daily allowance
If you have been employed on the basis of the employment obligation, your earnings-related daily allowance is not recalculated unless the pay on which the allowance is based is higher than previously. You are within the scope of the employment obligation if you are at least 57 years of age and reach the maximum period of daily allowance.
Better protection of earnings-related daily allowance for members over 58 of age
The rate of earnings-related daily allowance is always protected for people over 58 years of age. If you are at least 58 years of age when you meet the 26-week working condition your rate of earnings-related daily allowance either remains unchanged or is recalculated if the new pay on which your earnings-related daily allowance is based is higher than your previous pay. The work does not have to be based on the employment obligation. However, this comparison of benefits is made only in the event that the earnings-related daily allowance is to be recalculated. This means that if the employment condition is met within one year of the last time the earnings-related daily allowance level has been calculated and the earnings-related daily allowance been paid, the earnings-related daily allowance will not be recalculated and no preferential comparison will be made.
Partial early old-age pension
It is possible to start partial early old-age pension at the age of 61. If you receive partial early old-age pension during unemployment or lay-off, it will not be deducted from your earnings-related daily allowance and you will receive your earnings-related daily allowance in full.
If you have been working part-time due to partial early old-age pension and you become unemployed or laid off, the rate of your earnings-related daily allowance is calculated based on your part-time pay. Periods of partial early old-age pension cannot be skipped over when calculating the rate of earnings-related daily allowance. It is also worth noting that if you have been working less than 18 hours per week for more than six months before becoming unemployed or laid off you have completely lost you right to earnings-related daily allowance. This is because you must be on the labour market to retain your right to earnings-related daily allowance. Working at least 18 hours per weeks is considered being on the labour market.
Old-age pension and supplementary pension
Old-age pension based on years of service
You cannot receive earnings-related daily allowance if you receive old-age pension based on full years of service. You are not entitled to earnings-related daily allowance even if you have continued to work while on old-age pension and you become laid off. Old-age pension is a benefit that prevents the payment of earnings-related daily allowance (as well as basic unemployment allowance and labour market subsidy).
Please note that a retirement pension paid abroad may also prevent the payment of a daily allowance. For example, an old-age pension paid from Sweden is a preventive benefit if it is paid at 100%.
Supplementary pension financed by you or your employer
Supplementary pension financed by your employer is deducted in full from your earnings-related daily allowance. This means that while on the pension you accumulate days towards the maximum period of daily allowance in the same way you would when fully unemployed, i.e. each day for which the benefit is paid counts towards the maximum period.
If you have financed your supplementary pension yourself, the pension does not affect your earnings-related daily allowance in any way, even if you receive the pension during unemployment.