Transition security allowance

The change security allowance is a one-off compensation intended for people aged over 55 to support re-employment after dismissal for production-related or financial reasons. As a member of our unemployment fund, you can easily apply for the benefit through Otenet once you meet the conditions for change security and have registered in time as a jobseeker with the employment authority.

What is the transition security allowance?

The transition security allowance is part of the broader transition security framework, which was created to gradually replace the extended unemployment benefit period that is being phased out. The transition security allowance is a separate benefit paid by the unemployment fund.

In addition to this one-off compensation, the transition security framework includes transition security training and several other changes related to unemployment security for older employees. More information about the different elements of the transition security framework is available on the Työmarkkinatori.fi website:

Who is entitled to transition security?

The employment authority assesses entitlement to transition security and issues a statement to the unemployment fund. Compensation may be granted if:

• the employer has dismissed the employee for production-related or financial reasons.
• the person turns 55 years of age no later than the date of dismissal.
• the employment relationship has lasted for at least five consecutive years, or any interruptions during the employment have totalled no more than 30 days.
• the person has registered as an unemployed jobseeker with the employment authority within 60 days of the date of dismissal (Note: the date of dismissal is different from the end date of the employment relationship)

Restrictions on the transition security allowance

You are not entitled to the transition security allowance if there are changes during the notice period. You are not eligible for the benefit if:

• the employment relationship ends by mutual agreement between the employer and the employee,
• the employee resigns voluntarily,
• the employment relationship ends due to the employer’s bankruptcy, corporate restructuring, or death,
• the employer revokes the dismissal and the employee continues working for the same employer.

Amount of the transition security allowance

The amount of the transition security allowance corresponds to the person’s calculated average monthly earnings. The benefit is calculated based on income from the previous 12 calendar months, with income information obtained from the income register.

When calculating the amount of the benefit, both the salary paid by the dismissing employer and other compensation considered as earned income are taken into account. This includes, for example, holiday pay, holiday compensations, and performance bonuses.

Income tax on the transition security allowance is withheld according to the additional percentage applied to your salary. If you want to reduce your tax rate, you can order a revised tax card for the benefit. You can do this through the tax authority’s MyTax service. When using the service, select “Työttömyyskassa Ote” as the payer of the benefit so that the tax card information is automatically sent to the fund. Withholding tax will not be corrected retroactively.

How to apply for a transition security allowance?

The transition security allowance is applied for through the unemployment fund of which the person is a member on the date of dismissal. The benefit can be applied for already during the notice period, but the application must be submitted no later than three months after the end of the employment relationship. Complete the application in Otenetti under “Apply Redeployment aid.” No attachments are required for the application.

Please remember to notify us at the fund if there are any changes in your situation during the notice period.

Applying for transition security