A-kassan logo, vihreä

Detailed instructions

Page content

Oikopolut

Restructuring protection allowance

Oikopolut

In brief

  • the restructuring protection allowance is equivalent to one month’s pay
  • restructuring protection training lasts no more than 6 months, and is equivalent to no more than 2 months’ pay
  • paid leave to find employment is 5 days longer than usual

The restructuring protection package for persons aged 55 and over enteed into force on 1 January 2023. The change security includes a change security allowance, which corresponds to one month's salary, and the possibility of receiving change security training.:

  • the restructuring protection allowance is equivalent to one month’s pay
  • restructuring protection training lasts no more than 6 months, and is equivalent to no more than 2 months’ pay
  • paid leave to find employment is 5 days longer than usual


To be covered by the change security, the person must:

  • have been dismissed on production-related or financial grounds (termination of fixed-term employment does not meet the condition) on 1 January 2023 or thereafter.
  • have reached the age of 55 by the time of termination
  • have been employed by the same employer for at least five years by the time of dismissal
  • have registered as a job seeker at the TE Office within 60 days of termination

The date of termination means the date on which the notice of dismissal was given. Therefore, if the period of notice is long, you must register with the TE Office before the unemployment period has even begun.

 

Applying for restructuring protection allowance

You must apply to the unemployment fund for restructuring protection. You can apply the allowance already during your notice period, but no later than 3 months after your employment relationship has ended. If you are not a member of an unemployment fund, you can apply to Kela (The Social Insurance Institution of Finland) for restructuring protection allowance.

The amount of the restructuring protection allowance is the same, regardless of whether it is paid by an unemployment fund of Kela. The unemployment fund pays restructuring protection allowance even if your membership in the unemployment fund has started right before the dismissal and you have not been a member long enough to receive earnings-related unemployment allowance.

You can apply for the restructuring protection allowance in eService. The application can be seen in eService on the “Make an application” tab, if the unemployment fund has received a statement from the TE office regarding the restructuring protection allowance. If th application does not appear in eService, please contact the TE office to get a statement.

You can also apply for the restructuring protection allowance with the form found here on our website.


The amount of the restructuring protection allowance

The amount of the restructuring protection allowance corresponds to approximately one month’s salary.

 

  • The amount of the restructuring protection allowance is calculated from the wages received from the terminating employer during the 12 calendar months prior to the termination date. The amount also takes into account other income considered as earned income such as holiday bonus, holiday compensation and performance-based remuneration.
  • Unpaid periods during 12 months reduce the amount of restructuring protection allowance.

 

The restructuring protection allowance is taxable income. We recommend delivering the revised tax card meant for the benefit to A-kassa. Withholding tax is deducted from the restructuring protection allowance according to the additional percentage of the tax card intended for salary.


How restructuring protection allowance affects other benefits

The restructuring protection allowance does not affect unemployment security or other benefits, with the exception of social assistance. You do not have to be unemployed to receive the allowance. The allowance is paid even if you immediately get a new job at another employer.


Restructuring protection training

Restructuring protection training lasts no more than 6 months and is equivalent to no more than 2 months’ pay. Restructuring protection training is provided by the TE Office or the Centre for Economic Development, Transport and the Environment (“ELY-keskus”). Participation in restructuring protection training is voluntary, and refusal to participate will not result in the loss of unemployment benefits.


Additional days of unemployment security will be eliminated

In addition, the age limit to qualify for the extension will rise for those born in 1963 and 1964. Those born in 1965 or later will not be eligible for extended benefits at all.

Earnings-related unemployment allowance is usually paid for a maximum of 300–500 days. Additional days (i.e. extended benefit) refer to the right to earnings-related unemployment allowance after this cut-off period. In this case, earnings-related allowance can be paid after the end of the maximum period until the end of the calendar month in which the person that is on additional days turns 65 years.

In order to be eligible for additional days, a certain age must be reached before the end of the cut-off period, and one must have a five-year work history during the 20 years preceding unemployment. The age limit is currently 61 or 62 years, depending on the year of birth.

The age limit for additional days will increase by one year per age group, starting from those born in 1963. Those born in 1965 or later will not be eligible for additional days at all. This means that the reform will affect the right to earnings-related unemployment allowance from 2025 onwards, when those born in 1963 reach the current extension age limit of 62 years. The extended unemployment benefits will be completely discontinued in 2030.

Year of birth Extension age limit after amendment Government proposal
1957–1960 61 years no change
1961–1962 62 years no change
1963 63 years age limit will rise
1964 64 years age limit will rise
1965 not eligible for extension eligibility for extension will be removed

Taxation of the restructuring protection allowance

Withholding tax is deducted from the restructuring protection allowance according to the additional percentage of the tax card intended for salary or according to the percentage of the tax card meant for benefit.

If you don't want the withholding tax to go according to the additional percentage of the salary tax card, send us the revised tax card meant for the benefit.


When there is no right to get restructuring protection allowance

There is no right to get the restructuring protection allowance if

  • the dismissal originally based on production-related or financial grounds is cancelled during the period of notice and the employment relationship continues.
  • the employment relationship ends during the notice period on grounds related to the person of the dismissed employee.
  • the termination of the employment relationship is accompanied by a termination agreement, and it is not a dismissal based on production-related or financial grounds.
  • employment ends due to bankruptcy.
  • it is a question of business restructuring situation.