How does my age affect my earnings-related daily allowance?
There are several exceptions related to earnings-related daily allowance that mainly apply to persons aged 58 and over.
Maximum earnings-related daily allowance payment period
Earnings-related daily allowance can be paid for a maximum of 500 days, instead of the usual 400 days, if you are at least 58 years of age when you meet the working condition and have been employed at least five years in the 20 years prior to meeting the working condition.
Additional days – unemployment path to retirement
Payment of earnings-related daily allowance may be extended beyond the maximum payment period once you reach a certain age. The days by which the payment of earnings-related daily allowance is extend beyond the maximum period are called additional days.
If you were born between 1957 and 1960 you may be entitled to additional days if you have turned 61 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition.
If you were born between 1961 and 1962 you may be entitled to additional days if you turned 62 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition.
If you were born in 1963 you may be entitled to additional days if you turned 63 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition.
If you were born in 1964 you may be entitled to additional days if you turned 64 years of age before reaching the maximum daily allowance payment period. You must also have a minimum of five years of employment history in pension-insured work in the 20 years prior to meeting the working condition.
If you were born in 1965 or after, you are not entitled to additional days.
We can pay you earnings-related daily allowance up to the age of 65.
Additional days are not reset, and the amount of daily allowance is not reduced
Your maximum earnings-related daily allowance period will not be reset if you are already using additional days (unemployment path to retirement). This means that the maximum payment period is not reset, and the rate of earnings-related daily allowance is not recalculated, even if you perform work that meets the working condition for 12 months after the payment of additional days has started.
Additional days mean that you have exceeded the maximum payment period for earnings-related daily allowance (400 or 500 days in practice) and you have transferred to additional days. If the payment of additional days has started and you meet the 12-motnh working condition your maximum payment period will no longer be reset. The rate of earnings-related daily allowance will also not be recalculated, even if the rate would increase compared to your previous rate. The rate of earnings-related daily allowance is “locked” when you receive payment for your first additional day.
Exceptions that allow the payment of earnings-related daily allowance to a person over the age of 65
As a general rule, earnings-related daily allowance can be paid until the end of the month in which you turn 65. As an exception, earnings-related daily allowance may be paid after you have reached the age of 65 if you have been laid off or have been prevented from working due to weather conditions or collective action. The payment of daily allowance ends when you reach the age of 68 at the latest. Please note that if you receive old-age pension you cannot receive earnings-related daily allowance, even if you are laid off or have been prevented from working due to weather conditions or collective action.
Applying for old-age pension
You can apply for old-age pension using the online services of your employment pension institution. If you are not certain about your pension provider, you can find out by visiting the website Tyoelake.fi. Contact your pension provider if you have any questions regarding matters such as your pension record, future pension or applying for pension.
If your own pension provider does not have an electronic application service available, you can use a paper form or form 7001 which can be filled in online and printed.
Partial early old-age pension
It is possible to start partial early old-age pension at the age of 61. If you receive partial early old-age pension during unemployment or lay-off, it will not be deducted from your earnings-related daily allowance and you will receive your earnings-related daily allowance in full.
If you have been working part-time due to partial early old-age pension and you become unemployed or laid off, the rate of your earnings-related daily allowance is calculated based on your part-time pay. Periods of partial early old-age pension cannot be skipped over when calculating the rate of earnings-related daily allowance.
Old-age pension and supplementary pension
Old-age pension based on years of service
You cannot receive earnings-related daily allowance if you receive old-age pension based on full years of service. You are not entitled to earnings-related daily allowance even if you have continued to work while on old-age pension and you become laid off. Old-age pension is a benefit that prevents the payment of earnings-related daily allowance (as well as basic unemployment allowance and labour market subsidy).
Please note that a retirement pension paid abroad may also prevent the payment of a daily allowance. For example, an old-age pension paid from Sweden is a preventive benefit if it is paid at 100%.
Supplementary pension financed by you or your employer
Supplementary pension financed by your employer is deducted in full from your earnings-related daily allowance. This means that while on the pension you accumulate days towards the maximum period of daily allowance in the same way you would when fully unemployed, i.e. each day for which the benefit is paid counts towards the maximum period.
If you have financed your supplementary pension yourself, the pension does not affect your earnings-related daily allowance in any way, even if you receive the pension during unemployment.