Finland Times

 

Employment office. File Photo – Lehtikuva.

The shortening of the duration of earnings-related unemployment benefits will not affect those whose unemployment period begins this year or the next. 

 

The planned modifications only come into effect in early 2017 and for unemployment periods that begin since then.

 

“The reforms may not be carried out retrospectively,” government Counsellor at the Ministry of Social Affairs and Health Esko Salo told the news agency STT. 

 

He is leading the preparatory workgroup in charge of the changes.

 

The government on October 13 decided on the changes in the main lines of employment benefits.

 

The government’s proposal for the duration of earnings-related unemployment insurance would be reduced from 500 to 400 days. 

 

Those with less than three years of work history would see their duration shortened from 400 to 300 days.

 

All recipients of earnings-related benefits who turn 58 before unemployment will fall under the current model. 

 

The 500-day earnings-related benefit is also valid from 2017 onward, if a person is aged 58 or older.

 

“The research is mostly based on foreign studies, but I don’t know about any research done in Finland that directly relates to this topic. Common sense dictates that a person will begin more actively looking for work if their benefits end,” Salo said replying to a question if there is any research done on whether people are more earnest to seek employment the closer the end of their benefits comes.