For many school pupils and students, summer is their first contact with working life. A summer job offers valuable work experience, income, meaningful activity, and an opportunity to build skills. At the same time, it is good to take care of matters related to unemployment security – even if unemployment is not currently relevant.
Summer jobs are mainly fixed-term employments which schoolchildren and students take on during their summer holidays. There is no specific legislation on summertime employment, but the Young Workers’ Act does refer to such work performed by young people during holiday periods. In other words, standard employment legislation applies to summer work as well.
Join unemployment fund in time
For many young people, a summer job often represents their first paid employment. Commonly, this work period lasts only a few months and ends as school starts again in the autumn. As the employment is for a fixed term and a short period of time, young employees may think that unemployment and unemployment security are not yet relevant for them.
However, if you are 18 or older and working, you can already join an unemployment fund. As a member of an unemployment fund, you can start accruing entitlement to earnings-related allowance based on wages from which unemployment insurance contributions have been paid. Only members of a fund can receive earnings-related allowance and other benefits paid by the fund. The earnings-related allowance paid by an unemployment fund is higher than the unemployment benefits provided by Kela.
Entitlement to earnings-related allowance arises when you have been a member of an unemployment fund for a sufficient period and have earned the required amount of wage income, meaning that the membership condition and the employment condition are fulfilled
Membership condition:
- An unemployment fund membership of a minimum of 12 months before unemployment
- Valid membership
Employment condition:
- The employment condition is met when, during the preceding 28 months, you have been paid wages that count towards the employment condition of at least EUR 930 per month for at least 12 months (excluding holiday bonus or holiday compensation). The employment condition accrues by 1 month when the wages paid during a calendar month are at least EUR 930, and by ½ month when the wages paid during a calendar month are EUR 465–929.99.
- • If you are, for example, studying, ill, completing military or civilian service, or caring for a child under the age of 3, such periods extend the 28-month review period. The review period can be extended by up to 7 years.
The employment condition also accrues from short-term employment relationships, and the work does not need to be continuous.
Clear financial advantage of earnings-related allowance
The earnings-related allowance is clearly higher than Kela’s unemployment benefits. For example, with a monthly salary of EUR 2,500, the earnings-related allowance can be around EUR 1,500 per month, whereas Kela’s basic unemployment allowance (from the beginning of May, the general benefit) is about EUR 800 – that is, EUR 700 less.
Remember this when your summer job ends
If you have joined an unemployment fund during your summer employment, please consider remaining a fund member even when your employment ends. The right to earnings-related allowance may also be accrued with short-term employment relationships. You do not have to work continuously, but you do have to be a fund member in order to be eligible for earnings-related allowance.
If you become unemployed after your summer job:
- Register as an unemployed jobseeker at Job Market Finland immediately after your employment ends.
- If you fulfil the employment condition and the membership condition set by the unemployment fund, you may apply for earnings-related allowance from the fund.
- If you do not fulfil the conditions, you may apply for daily allowance from Kela.
Why is a certificate of employment important?
The employer is obligated to provide a certificate of employment to the summer employee at the end of the employment relationship. You may also request that the employer includes an assessment of your work skills in the certificate of employment. A certificate of employment is important because it provides information on your work experience which is useful when applying for a new job.
What are final salary and holiday compensation?
Final salary is paid to the employee at the end of the employment relationship. It includes all unpaid salaries, additional compensations and holiday compensation for untaken holidays which you have earned during your summer employment. Some industries also pay out a holiday bonus.
When the amount of earnings-related allowance is calculated, your holiday period salary is accounted for in case you have taken the holiday. However, holiday bonus and holiday compensation and not included in the calculation.
If a full-time employment relationship lasting more than two weeks ends, any holiday compensation paid for unused annual leave will be allocated over time.
The allocation of holiday compensation postpones the start of your right to earnings-related allowance by the number of days that corresponds to the average daily wage the holiday compensation covers.
If you have several fixed-term employment contracts with the same employer, each lasting more than two weeks, and you agree with your employer to defer your holidays in accordance with Section 18 of the Annual Holidays Act, the unemployment fund will require a written agreement to that effect. If no written agreement is provided, the unemployment fund must allocate the holiday compensation after the first employment relationship ends—even if the compensation is not actually paid at that time.
Under 25-year-olds must apply for a place of study
If you are under 25 years old and unemployed without vocational training, you must apply for a place of study. If you do not apply for a place of study, you decline it or discontinue studying, you may lose your right to unemployment benefits until further notice.
Your right to unemployment benefits is returned when:
- You have completed vocational training and received a degree for it.
- You have been employed for a minimum of 21 calendar weeks in a job which fulfils the employment condition.
- You have taken part in services promoting employment.
- You have studied full-time.
- You have been employed full-time as an entrepreneur.
- You are 25 years old.
The public employment services examines your study record and any related matters. Remember to always inform the public employment services of your studies if you are registered as a jobseeker.
Information on studying on earnings-related allowance
For more information, please see the following:
Kela Our services | Kela
Job Market Finland (tyomarkkinatori.fi)
Support from the unemployment fund also for job search
A-kassa also provides its members with support for job seeking. The aim of the job search support services offered to our members is to make job searching easier and to support employment, especially when an employment relationship ends. Members have access to, for example:
- Employment Wizard, a digital service platform that uses artificial intelligence, where you can create a jobseeker profile, update your job application documents, and receive suggestions for open positions. The service also provides links to other services that support job seeking.
- The Barona job search channel, where you can apply for multiple jobs with a single application, and Barona’s recruiters assess your suitability broadly for different roles.
- Employment Webinars, where you receive practical tips for job seeking and career planning. You can participate live or watch recordings afterwards.
You can access the job search support services by logging in to the A-kassa’s eService.
Security throughout different stages of your career
Many A-kassa members are also members of their industry’s trade union. Unemployment funds offer security for unemployment, whereas trade unions protect employees during employment and negotiate, for instance, collective agreements and provide help in any employment or wage payment-related issues with the employer. Trade union membership fees often cover an unemployment fund membership as well.
A-kassa is Finland’s third largest general, multi-trade unemployment fund that is open to all wage-earners.