Government proposes to end adult education allowances and job alternation leaves

Under a proposal put out by the Government, the adult education allowance would no longer be available for studies beginning on or after 1 August 2024. The same would apply to the government-provided student loan guarantees that are part of the scheme. Eligibility for job alternation leaves would also end at the beginning of August.

The Government’s proposal (HE 8/2024 vp) was submitted to Parliament on 15 February 2024.  Parliament is expected to approve the changes outlined in the proposal during the spring. The changes would take effect on 1 August 2024.

Government-guaranteed student loans for adult students

Employees and self-employed persons have had the option of applying to the Employment Fund (tyollisyysrahasto.fi/en) for an adult education allowance. Students receiving adult education allowance have also had a right to government guarantees for their student loans. The loan guarantees have been granted by Kela.

In 2022, the Employment Fund paid adult education allowance to 30,124 persons. A total of 9,868 persons received a loan guarantee from Kela.

The Government is now proposing to repeal the act governing adult education benefits. According to the Government’s proposal, adult education allowance would be available for studies beginning no later than 31 July 2024, provided that the payment period for the allowance also begins by that date. The allowance would continue to be paid until the end of 2025. Loan guarantees under the adult education allowance scheme would also be available until the end of 2025.

Job alternation compensation from an unemployment fund or from Kela

Full-time employees have had the option of taking a job alternation leave, subject to agreement with their employer. During the leave, they have been entitled to a job alternation compensation, typically granted by their unemployment fund. 

Employees not enrolled in an unemployment fund have had the option of applying to Kela for a job alternation compensation calculated on the basis of the basic unemployment allowance. It is payable at a rate of EUR 26.05 per day. 

Kela has paid out relatively few job alternation compensations. For example in 2022, job alternation compensation was paid to 5,400 persons, 30 of whom received it from Kela. 

The Government is now proposing to repeal the Act of Parliament on job alternation leaves.  According to the proposal, the last day for starting a new job alternation leave would be 31 July 2024. Anyone already on a job alternation leave would be able to stay on the leave for a maximum of 180 calendar days.

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