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Summer employee, don’t forget unemployment security: You can join a fund already at 18 years old!

News

15.7.2024

Summer is here, and many schoolchildren and students have fixed-term summer employment. Summer jobs provide valuable work experience, income and something worthwhile to do, and they may even become springboards for future careers. For the future, one should ensure that unemployment security is taken care of, even though becoming unemployed is probably the last thing a new recruit thinks about.

 

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.

 

An 18-year-old can join an unemployment fund

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 have turned 18, a summer job provides a great opportunity to join an unemployment fund. As a member of an unemployment fund, you can start accruing your right to earnings-related allowance. Earnings-related allowance and other fund benefits are only available to fund members. The earnings-related allowance paid by an unemployment fund is bigger than the basic unemployment allowance by Kela.

 

You are entitled to earnings-related allowance after your unemployment fund membership and your paid employment have reached the required duration, i.e. your membership and employment conditions are both fulfilled.

 

Membership condition until September 1, 2024:

  • An unemployment fund membership of a minimum of 26 weeks before unemployment
  • Valid membership
Membership condition starting September 2, 2024:

  • An unemployment fund membership of a minimum of 12 months before unemployment
  • Valid membership
Employment condition until September 1, 2024:

  • A minimum of 26 calendar weeks of eligible employment in the previous 28 months
Employment condition starting September 2, 2024:

  • Eligible earned income of 930 euros / month, paid during a minimum of 12 months, in the previous 28 months (holiday bonus and holiday compensation not applicable)

 

You must be employed upon joining an unemployment fund. In other words, if you are unemployed, you cannot join a fund. You can apply for earnings-related allowance if, for instance, you cannot find employment immediately upon graduation but you have accrued the employment condition with your previous summer jobs.

 

Earnings-related allowance is a great benefit

The earnings-related allowance is bigger than the basic unemployment allowance by Kela. For example, if you earned 2,500 euros a month before unemployment, your earnings-related allowance would be approximately 1,520 euros a month for the first 40 days if your employment condition is fulfilled after September 2, 2024. Conversely, basic unemployment allowance by Kela is approximately 800 euros a month, i.e. about 700 euros less.

 

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.