Four common misconceptions about unemployment security
For many, unemployment security is something that they do not read up on until they are unemployed or laid off.
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In brief
- A-kassa is the third largest unemployment fund in Finland
- 10 background trade unions
- In addition to the A-kassa, a large number of members belong to a trade union
- A-kassa is open to all wage-earners
- From the A-kassa, you can apply for earnings-related allowance, mobility allowance, compensation for job alternation and restructuring protection allowance
Four common misconceptions about unemployment security
For many, unemployment security is something that they do not read up on until they are unemployed or laid off. However, to be entitled to an earnings-related unemployment allowance, you must have joined an unemployment fund in advance. We interviewed Kaisa Tikka, Benefits Manager of A-kassa, about the topic, and we will now take a look at four typical misconceptions about unemployment security.
1. You can join an unemployment
fund when you are unemployed
Many people do not find joining an unemployment fund relevant until they are unemployed or laid off. Unfortunately, this assumption is wrong: you can only join an unemployment fund when you are still employed. You should check your unemployment fund membership status when your job situation is good. Many people belong to both a trade union and an unemployment fund, which gives them the best security for various situations on their career path.
This is an
unfortunate misunderstanding that many have, and in practice, it means that people do not join an unemployment fund early enough before unemployment, says
Kaisa Tikka from A-kassa.
You can receive an earnings-related unemployment allowance from your unemployment fund when you have worked and been a member of the unemployment fund for at least 26 weeks. What this means in practice is that you must have been working for six months while being a member of an unemployment fund before you can receive an earnings-related unemployment allowance. You should read more about the topic on your unemployment fund’s website. Factors that extend the review period include studies and parental leave.
The law change that will enter into force at the beginning of September will change the membership and employment history requirements, so we advise you to join an unemployment fund now. If you prepare for the changes well in advance, they will not impact your unemployment security that much.
2. Unemployment funds pay you the same as Kela
This common misconception about how much money
unemployment funds pay you is also false. As a member of an unemployment fund, you can receive clearly the highest possible unemployment allowance, because the amount of the unemployment allowance paid by your unemployment fund is affected by how much salary you earned before you became unemployed. This is why the unemployment allowance is called earnings-related.
“If you relied on Kela’s allowance alone, you could receive roughly 800 euros per month during your unemployment. If you joined an unemployment fund well in advance and met the employment history requirement, your daily allowance would be approximately 1,523 euros if your monthly salary used to be 2,500 euros. In other words, unemployment fund membership will bring you tangible benefits that can be measured in euros,” Tikka explains.
3. There are no differences between
unemployment funds
This is both true and false. All unemployment funds obey the same laws, meaning that there is no difference in the amount of earnings-related unemployment allowance they pay. All unemployment funds calculate the allowance using the same formula.
However, the services, application processing times and membership fees may vary greatly between unemployment funds.
Another thing is that some unemployment funds only accept members from specific industries. A-kassa, on the other hand, welcomes all employees. This means that if you switch industries, you will not need to change your unemployment fund!
Employees get the best security by joining both a trade union and an unemployment fund. Trade unions provide job security,
whereas we at A-kassa provide security against unemployment, Tikka explains.
4. Unemployment funds only pay
earnings-related unemployment allowances
Unemployment funds also pay other benefits – mobility
allowance, job alternation compensation and restructuring protection allowance.
“Many forget this, because the earnings-related
unemployment allowance is the best-known benefit offered by unemployment funds,” Tikka says.
The purpose of the mobility allowance is to encourage people to accept work even if it means travelling further away from home. The mobility allowance is paid towards your
commuting or removal costs when you accept a job or a training place required for a job that requires a long commute.
Job alternation compensation is a benefit paid by an unemployment fund for the duration of your job alternation leave. You can go on job alternation leave if you have been a full-time employee for the same employer for at least 13 months before your job alternation leave starts.
The requirement for job alternation leave is at least 20 years of work historybefore the start of job alternation leave. Prime Minister Petteri Orpo’s Government has been planning to abolish the job alternation leave system. You
can read more about the potential changes here.
Restructuring protection allowance and voluntary restructuring protection training are part of the restructuring protection package for persons aged 55 and over. Those covered
by restructuring protection are entitled to a restructuring protection allowance, training and extended employment leave.
Many jobs, many branches – one Unemployment Fund.
- A-kassa is an Unemployment Fund which is open to all wage earners.
- Together with the trade unions, A-kassa provides its members with a solid security for the various twists and turns of working life.
- Trade unions provide security for working life, we at A-kassa in case of unemployment.
- Only as a member of the unemployment fund can you receive earnings-related daily allowance if you become unemployed or are laid off.
- We also pay mobility allowance, job alternation compensation and restructuring protection allowance.
Supplement your A-kassa membership by joining a trade union in your field.
The membership fee of several trade unions also includes the membership fee of A-kassa, however, check with your own trade union.
Do you want join only the A-kassa?
If you want to join only as a member of the unemployment fund, you can do so by filling out a membership application.
As a member of the Unemployment Fund, you get the best financial security in case of unemployment. As a member, you can receive earnings-related allowance, mobility allowance when you get work further away, and job alternation compensation when you take job alternation leave.
Upheavals in the world, both big and small, are reflected in working life in ways that we cannot always predict. That’s why it’s worth making sure that earnings-related unemployment insurance is in order.
Together with the trade unions, we form solid security. Trade unions provide security for working life, we at A-kassa in case of unemployment.
A-kassa is an unemployment fund open to wage earners in all sectors. Any employed employee under the age of 68 can become a member of A-kassa.
The membership fee of several trade unions also includes the membership fee of A-kassa, however, check with your own trade union.
The membership fee of A-kassa is included in the membership fee of several trade unions.
If you are only a member of A-kassa, the membership fee is 8 euros per month or 96 euros per year. The membership fee can be paid at once for the whole year, divided into four parts or paid once a month.
If you transfer from another unemployment fund, the period of membership and employment accumulated at the previous fund will be accredited to you as you transfer to the Open Unemployment Fund. However, you must join within one month of resigning from the previous fund.
When joining, you can authorize us to notify the previous union and fund of your resignation.
We are an unemployment fund for wage-earners. If you are a full-time entrepreneur and were a member of the entrepreneur fund but are moving to paid work, you can become a member as an employee. The condition is that you become a member no later than one month after you left the entrepreneur fund. Based on your previous membership of the entrepreneur’s fund, you can receive entrepreneur’s daily allowance from us for the period of possible unemployment, if you do not yet meet the condition of being employed as a wage earner.
During part-time entrepreneur or as a family member of an entrepreneur, you can be part of the wage earner’s Fund and accumulate the wage earner’s employment condition in other work that has been done as a wage earner.
