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  3. Pension cover for the long-term unemployed

Pension cover for the long-term unemployed

Pension accrual

Some pension will accrue during periods of unemployment if the unemployed person is a member of an unemployment fund and receives earnings-related unemployment allowance.

Pension does not accrue on the basis of Kela's unemployment allowance or labour market subsidy.

Extended unemployment allowance (additional days)

Extended unemployment allowance requires that

  1. the person has worked for at least five years in the last twenty years, and
  2. if born in 1957 or later, reaches the age of 61 before exhausting the maximun payment period, or
    if born in 1961 or later, reaches the age of 62 before exhausting the maximum payment period

More information on earnings-related unemployment allowance and extended unemployment allowance is available at the Federation of Unemployment Funds tyj.fi. Information about basic unemployment allowance at Kela. A large employer may be obliged to pay the employer’s liability component if it has dismissed an elderly employee and the employee has been unemployed for a long time, read more at tvr.fi/en/.

Old-age pension

An aged long-term unemployed person can take out old-age pension from the age of 62 if he or she was born in 1957 or earlier and receives extended unemployment allowance.

Persons born in 1958 or later can retire at their normal retirement age.

Read more on the pension cover for the unemployed (pdf).

 

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