Legislative changes at the turn of the year
Changes to unemployment security as of 1 January 2023
Method for determining the hours of employees laid off on a shortened workday has changed
Previously, the working hours of employees laid off on a shortened workday were tallied based on the calendar week. This meant that when calculating total hours worked, hours were tallied for the calendar week during which the wages were paid. In the future, hours worked are tallied in the normal way using the entire adjustment period of either four weeks or one full calendar month. The working hours of employees laid off on a shortened workday are tallied using the same method as employees who receive an adjusted daily allowance. Please note that the change does not apply to employees who are instead laid off on a shortened workweek.
You can read more about layoffs here
Transition security for employees aged 55 and older
Employees covered by transition security are entitled to:
- a transition security allowance equal to 1 month’s pay
- transition security training lasting up to 6 months, the value of which is equal to up to 2 months’ pay
- five additional days of employment leave
To be eligible for transition security, you need to
- have been dismissed due to production-related or financial reasons (termination of a fixed-term job does not meet the requirement)
- be 55 years old at the time of dismissal
- have worked for the same employer for at least 5 years at the time of dismissal
- have registered as a jobseeker with the TE Office within 60 days of the dismissal (Please note that the notice period may be longer than 60 days.)
The date of dismissal is the date on which you received your notice of termination of employment. Therefore, if the notice period is long, you must register with the TE Office before the start of unemployment.
Additional days will be removed and replaced by a transition security package
Under certain conditions, earnings-related allowance is paid after the maximum period until retirement age. These are known as additional days. Additional days may be paid if you have reached your maximum days and you meet the age requirement. You also need to have been employed for at least five years during the past 20 years.
The minimum age for additional days will increase by one year per age group starting from those born in 1963, with the right to additional days to be abolished entirely for those born in 1965 and later. This means that the reform will affect the right to earnings-related allowance starting in 2025, when those born in 1963 will reach the age of 62, the current minimum age for additional days. Payment of additional days ends entirely in 2030.
Age requirement to qualify for additional days:
60 years of age for those born in 1955–1956
61 years of age for those born in 1957–1960
62 years of age for those born in 1961–1962
63 years of age for those born in 1963
64 years of age for those born in 1964
Those born in 1965 or later are not entitled to additional days
Studying during unemployment is made easier
During unemployment, you can study short courses and attend short trainings, qualification trainings and studies at an adult education centre without affecting the payment of unemployment benefits. For more information, contact your local TE Office.
In the future, full-time or part-time studies at an open university or university of applied sciences will also not affect the payment of unemployment benefits if:
- the duration of the studies, either continuously or periodically, does not exceed 3 months, and
- the average scope of the studies is at least 5 credits per month of study.
If the studies are incomplete after of 3 months, the TE Office will assess the full-time or part-time nature of the studies. Any studies can be considered part-time if you are employed or self-employed in an established manner alongside the studies for at least 6 months. Studies are not considered full-time if the studies were started during an employment relationship and the unemployment is due to a lay-off or dismissal on financial or production-related grounds.
Royalties no longer taken into account in the adjustment of earnings-related unemployment allowance
Previously, royalties (such as Teosto or Gramex payments) were considered income and taken into account in the adjustment of earnings-related allowance. As of 2023, royalties no longer constitute earned income in the adjustment and are no longer taken into account in the payment of earnings-related unemployment allowance. However, other intellectual property compensations are still taken into account as earned income. The change entered into force on 1 January 2023.