It's a good idea to join an unemployment fund – even when you're young

Security against surprises

Sometimes, as a recent graduate, it can be challenging to find work, there may be periods of unemployment between temporary jobs, permanent employment unexpectedly ends, or only part-time work is available. For these situations, Finland has unemployment funds whose task is to ensure the livelihood of their members when unemployment strikes.

By joining as a member of the fund, you can accrue entitlement to earnings-related benefits. This way, you receive unemployment security while unemployed, the amount of which is calculated based on your salary.

If you are not a member of an unemployment fund, you will receive unemployment benefits from Kela. Earnings-related benefits are often more than double the unemployment benefits provided by Kela. Membership in an unemployment fund is also an inexpensive insurance against unemployment. The annual membership fee usually corresponds to less than two days’ worth of earnings-related benefits.

Difference between earnings-related benefits and unemployment benefits paid by Kela in 2024

Salary before unemployment / month 1 500 € 2 000 € 2 500 € 3 000 € 3 500 € 4 000 €
Earnings related allowance (year 2024) / month 1 090 € 1 306 € 1 523 € 1 739 € 1 956 € 2 094 €
Basic allowance (year 2024) / month 800 € 800 € 800 € 800 € 800 € 800 €

When can you receive earnings-related benefits?

There are age and education, situation, as well as work history and membership-related requirements for receiving earnings-related benefits.

Age and education:

  • You are over 18 years old (or 17 years old and have completed your compulsory education) and you have a vocational degree or have applied for education but have not been accepted, or
  • or you are over 25 years old.

Situation:

  • You are unemployed, laid off, or only partially employed, for example, in part-time or temporary work, and
  • you are applying for full-time work and have registered with the TE Office (employment office) as an unemployed job seeker.

Membership and work history:

  • You are a member of an unemployment fund, and
  • you have a total of 6 months of work history during your membership in the fund.

The law regarding the conditions for earning benefits will change in September 2024. Starting from September 2, 2024, earning earnings-related benefits will require a total of 12 months of employment during your membership in the fund. Read more: Changes to the conditions for earning benefits.

The work counted towards earnings-related benefits does not have to be continuous. Work months from the previous 2 years and 4 months can be included. If you have been studying, work can be considered over a longer period. At most, work weeks from 9 years and 4 months can be included.

Can a student receive unemployment benefits?

Earnings-related unemployment benefits cannot be received while studying in high school, vocational school, or university for a degree. However, it is advisable to join an unemployment fund during studies. This way, the entitlement to earnings-related benefits can be accumulated before graduation.

How much does membership cost?

Members of unemployment funds pay a membership fee. In some funds, a flat-rate annual or monthly fee is paid. In some funds, the membership fee is a certain percentage of the salary, so the membership fee is higher the higher the person’s income.

For someone earning 2,000 euros, the average membership fee this year is 73 euros per year or 6 euros per month. You can find the membership fees for all unemployment funds operating in Finland here: Membership Fees

Please note that the annual membership fee corresponds to less than two days of earnings-related unemployment benefits with a monthly salary of 2,000 euros. So, the membership fee is small compared to the benefit you receive from membership if you become unemployed.

How do I join?

You can join an unemployment fund when you are doing summer work, part-time work, in a permanent employment relationship, or working as an entrepreneur.

You need to apply for membership in an unemployment fund. Instructions for applying can be found on the fund’s website. You can find the contact information for all unemployment funds operating in Finland here: Contact Information for Unemployment Funds

In Finland, there are several unemployment funds for wage earners and one unemployment fund for entrepreneurs. Some funds are industry-specific, meaning that joining the fund requires working in a specific industry. Some also require certain qualifications. Additionally, there are also unemployment funds for wage earners that anyone can join.

All funds provide unemployment benefits to their members at the same level and under the same conditions.