How Netta, Santtu and Adem coped with unemployment
Unemployment can be a big blow to your finances, but it’s possible to prepare for it in ways that make the drop in income easier to manage.
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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
How Netta, Santtu and Adem coped with unemployment
Unemployment can be a big blow to your personal finances, but it’s possible to prepare for it in ways that make the drop in income easier to manage. We often don’t think about the importance of unemployment security until unemployment affects us personally. Financial security brings peace of mind, and at its best, unemployment security helps our personal finances from being overwhelmed by a period of unemployment or lay-off. Next, we’ll look at three cases where members benefited from belonging to an unemployment fund.
Don’t wait to join an unemployment fund
Netta, 27, joined an unemployment fund already during her studies and met the employment condition entitling her to earnings-related unemployment allowance by working two summers alongside her studies. She found work in her field immediately after graduation, but was informed of temporary lay-offs after just three months in the new job. In order to receive earnings-related unemployment allowance, both the membership condition and the employment condition must be met. This means about six months of work and membership in a fund. Because she had joined a fund already during her studies, Netta had met the condition for earnings-related daily allowance when hearing the news of the lay-offs. Netta had joined a fund already during her studies and had met both conditions for earnings-related unemployment allowance when hearing the news of the lay-offs. The lay-offs came as a shock, of course, but earnings-related daily allowance was a lifesaver for Netta, who lives alone.
With Netta’s income, her earnings-related allowance was considerably higher than the basic unemployment allowance paid by Kela.
Monthly pay from summer job | Monthly pay from full-time work | Month earnings-related unemployment allowance | Kela’s basic unemployment allowance |
€1,500 | €2,700 | €1,343 | about €800 |
In Netta’s case, her pay from the last summer while still a student and the pay from full-time work (3 months + 3 months) are taken into account when determining earnings-related daily allowance. Earnings-related unemployment allowance is determined based on this income.
Although Netta only worked full-time for three months before the lay-off, she still managed to meet the condition for earnings-related unemployment allowance. She would not have been entitled to the allowance had she not joined an unemployment fund until after starting full-time work.
When you have more than one job
Adem, 31, works as a dance teacher, choreographer in a theatre and dance camp director during the summer. He is used to planning his day by piecing together a puzzle of several jobs and enjoys the diversity of his work. However, there are times when his work is part-time or only for a fixed term. When his work has been entirely or partially interrupted, he has applied for an allowance from the unemployment fund. If you work part-time, the fund can pay you an adjusted daily allowance that takes into account your income from part-time work.
Example of Adem’s unemployment allowance:
Income from full-time employment: €3,500
Full earnings-related unemployment allowance if unemployed (with an income of €3,500): €1,945
Income while receiving an adjusted allowance: €1,000
Adjusted earnings-related unemployment allowance: €1,595
Total income from part-time work and the adjusted allowance: €2,595
The amount of Kela’s basic unemployment allowance with an adjusted income of €1,000 would be: €450, with a total income of €1,450.
Unemployment enabled a new career move
Santtu, 35, had worked at a large international company for several years when his unit was closed down and he became unemployed. Santtu immediately registered as an unemployed jobseeker and applied for earnings-related unemployment allowance. His job prospects looked poor as he only had skills in a narrow area of expertise, so he decided to explore the option of seeking further education and training.
In certain cases, it is possible to study while receiving earnings-related unemployment allowance. You can receive the allowance if you study part-time or for a short period or participate in services that promote employment. Santtu found training that was approved by the TE Office and which allowed him to strengthen his expertise. With the help of the training, Santtu was found capable of finding employment more effectively in the future. Thanks to this, the fund continued to pay earnings-related unemployment allowance during Santtu’s studies.
Santtu eventually found new work fairly quickly. As a member of the Open Unemployment Fund, he did not have to change unemployment funds despite moving to work in a new field. A-kassa is an unemployment fund open to all wage and salary earners, regardless of profession.
Santtu’s monthly salary before unemployment was €3,700, and he received €2,030 in earnings-related unemployment allowance before taxes. Had he not been a member of the fund, he would have received around €800 in basic unemployment allowance from Kela.
Use the earnings-related unemployment allowance calculator to see what your allowance could be.
What is A-kassa?
Open Unemployment Fund A-kassa is an unemployment fund open to all wage and salary earners, regardless of industry. A-kassa is the third largest unemployment fund in Finland with ten backing trade unions. Many members choose to belong to the fund’s trade union. Together with trade unions, A-kassa provides strong security for its members in the twists and turns of working life. Trade unions provide job security, whereas A-kassa offers security against unemployment.
You must be a member of an unemployment fund to receive earnings-related unemployment allowance if you become unemployed or are laid off temporarily. We also pay mobility allowance, job alternation allowance and restructuring protection allowance.
Join the Open Unemployment Fund
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.
