Right to additional days of earnings-related allowance will be removed
The Finnish Government has announced that the right to additional days of earnings-related allowance will be removed. The right to additional days refers to the right to daily allowance for the elderly after the maximum period has elapsed. If the Parliament will approve the the legislative amendment, the right to additional days will gradually be deleted as of 2023.
The harmful effects of removing the right to additional days is meant to be facilitated by improving the well-being at work life and continuing the careers of the elderly, adding job search opportunities as well as offering new means of support.
Gradual changes by age groups
The removal of right to additional days does not have an effect to those that have already earned the right. In addition, the amendment will not concern those that will gain the right before 2023. Applicants born in 1962 will be the last age group that can use the right in its current form.
At the beginning of 2023, the gradual changes will affect those that have been born in 1963 or later. For a person born in 1963, the minimum age requirement will be raised to 63 years, for a 1964 born it will be 64 years and for those born in 1965 will be the first age group that will not have the right to additional days at all.
The right to additional days will be completely removed until 2025.
Change security package for the elderly that have been made redundant
In future, a person over 55 years old will receive a change security package, if they have worked for the same employer for at least five years before redundancy.
Package will include severance payment for a month and the person made redundant will receive training subsidy from the Employment Fund that is equal to two months pay. Subsidy will be paid in addition to the severance payment. The severance payment nor training subsidy will not prevent the payment of earnings-related allowance simultaneously.
New forms of support at the beginning of 2023
At the beginning of 2023, new forms of support will enter into force. You will find the most essential changes below.
People that have worked for the same employer for a long time will receive a longer employment leave period (5, 15 or 25 days) depending on the length of the notice period.
Over 55-year-olds are entitled to receive at least 70 per cent wage subsidy for a period of 10 months, if they have been unemployed for two years for the last 28 months. Wage subsidy will be determined according to 25 weekly working hours.
Employees made redundant can register themselves as jobseekers and, among other things, draw up an employment plan with the TE Office already during the notice period.
Shifting to part-time work will be facilitated, if the employee has turned 55 years and has worked for the same employer for at least three years. It is not, however, possible to start working part-time in all cases, because the employer does not have an automatic obligation to offer part-time job.
In addition, maximum level of income reduction in taxation will be raised with 200 euros, if the work has been done when the employee is at least 60 years old.
We will update the article, if any changes to the information found here are made.