Your pension grows even while you are out of work. The earnings-related daily allowance increases your pension as much as your earned income does.
fIn the unfortunate event that you lose your job, register as a job seeker with the employment and business office, i.e. TE Office. Visit the TE Office at the latest on your first day of unemployment. After that, you should apply for earnings-related daily allowance from your unemployment fund. If you are not a member of a fund, apply for basic daily allowance or labour market subsidy from Kela.
Your pension grows even while you are out of work. This is thanks to your earnings-related daily allowance. It increases your pension as much as your earned income does – at a rate of 1.5 per cent per year. However, there is one condition that has to be met for this to happen: the income you have earned during your career must exceed a certain sum. In 2019, that sum is EUR 17,807.01. Your pension will grow until you reach lower retirement age.
If you were born before 1958 and you have received unemployment allowance for more than 500 days, it is possible for you to retire on old-age pension at the age of 62. In that case, request a certificate from your unemployment fund or Kela stating that you have received continued unemployment allowance during the month preceding the start of the pension. If you have any doubts about what to do, call us. Our customer service can be contacted at +358 10 284 2011.