Age limit for earnings-related daily allowance will increase to 18 years

Topics

• Income security
• Law change

The Finnish Parliament has passed a law extending compulsory education until the person reaches the age of 18. At the same time, the age limit for earnings-related daily allowance will be raised to 18 years.

As a result of the change, earnings-related daily allowance will not be granted on 1 August 2021 and thereafter to persons under the age of 18 who have not completed compulsory education within the meaning of the Compulsory Education Act.

According to the new Compulsory Education Act, compulsory education ends when a person has completed a vocational education and training or matriculation examination, but no later than at the age of 18. Earnings-related daily allowance may therefore be granted to jobseekers aged 17 or over, provided that the person has completed a vocational education and training or matriculation examination, i.e. completed compulsory education.

In addition, earnings-related daily allowance may also be granted to jobseekers aged 17 or over if they have suspended the completion of their compulsory education as provided for in the Compulsory Education Act. 

Before the entry into force of the new Compulsory Education Act on 1 August 2021, those who have completed their compulsory education within the meaning of the current Basic Education Act would still be entitled to earnings-related daily allowance at the age of 17.

Currently, the minimum age for the obligation to pay unemployment insurance is 17 years. This also changes so that on 1 August 2022 and after that, the unemployment insurance contribution is paid only after the employee has reached the age of 18.

The change in the obligation to pay unemployment insurance contributions means that after the change, persons under the age of 18 will not be able to receive earnings-related daily allowance even if compulsory education has already ended at the age of 18.  

1. According to the current law, unemployment benefit is not granted to applicants who have not reached the age of 17.
2. As of 1 August 2021, unemployment benefit will not be granted to jobseekers who have not reached the age of 18.
3. As of 1 August 2021, unemployment benefit may be granted to jobseekers who have not reached the age of 18 but have completed or have acceptably suspended compulsory education.
4. As of 1 August 2022, unemployment insurance contributions will not be paid for the period before the next calendar month in which the employee reaches the age of 18.
5. As of 1 August 2022, the working condition can only be collected for the next calendar month, before which you have reached the age of 18.
6. As of 1 August 2022, you can only accrue the working condition as a condition of earnings-related daily allowance for the next calendar month, before which you have reached the age of 18.