bgcolor=#ffffff vlink="blue" link="blue"> Page 1 1 Labour Market Training and Benefits 1.1.2008 The objective of the labour market training organised by the Ministry of Labour and bodies subordinate to it is to maintain and develop the vocational skills of adults. Labour market training is mainly aimed at adults who are unemployed or under threat of unemployment and who have completed their compulsory education. The training is free of charge to all participants. The labour authorities procure training services from vocational adult education centres, higher education institutions and other providers of training and education services. Vocational labour market training is normally education or training that leads to a qualification. Students can complete basic, vocational or specialised vocational qualifications or a part of a degree in a wide variety of fields. The training can also take the form of supplementary training or continuing professional education. Courses in entrepreneurship are also arranged for those who are planning to become entrepreneurs or are already starting up their own business. During labour market training, a personal study plan will be drawn up for each student that will take into account his/her previous studies and training as well as work experience. The training usually includes a period of learning on-the-job, which enhances both the learning process and the prospects for finding work after the training is over. Vocational labour market training can be produced in cooperation with the employer as so- called joint purchase training. In this case, the training can be tailored to suit the employer00 needs and the employer will also participate in funding the training as well as selecting the students. Labour market training that leads to a higher education degree can be procured to enable a student to finish uncompleted university studies or as retraining and upgrading of qualifications leading to a polytechnic degree. Preparatory labour market training can include vocational planning or guidance for improving skills needed in applying for work and education. Preparatory training can also be arranged for improving basic IT skills or language skills, or promoting integration of immigrants. How to apply for labour market training If you are thinking about applying for vocational training or other education, it would be worth looking at the wide range of options offered by the employment offices 00even those beyond your present career and home town. Information about the available labour market training and the application periods is available from all employment offices as well as on the Internet, at www.mol.fi. You will also find other sources of information at the end of this brochure. You can apply for labour market training by completing an on-line application form at www.mol.fi or a printed application form from an employment office (Form 6.01 TM). Your on-line application will be automatically directed to the employment office responsible for Page 2 2 student selection. The printed form has to be submitted to your local employment office in person. You should fill in the application form with care and check that you have entered the details correctly. The applicant should always give detailed reasons why the training is needed, as this has a major effect on the selection. If you cannot find suitable training from our range of options, you can always contact the nearest employment office and discuss the possibility of arranging individually tailored training to meet your specific needs. Selection of students for labour market training Participants are selected for training on the basis of applications, interviews and, if necessary, aptitude tests. A course may also begin with an assessment period of 100 weeks, after which the final selection is made. The selection criteria for labour market training are: 00suitability for the training and the field of study 00the specific criteria set for the course in question 00the impact of the training in relation to the participant00 chances of finding work 00previous training, education and work experience The employment office of the town where the training takes place is responsible for student selection. The selection is made by an admissions group, which consists of representatives of the employment office and training provider and, if necessary, other experts. If the training is arranged for people who will be employed with a particular employer, the employer00 representative will also participate in selecting the students. The employment office will notify the applicants about the decision in writing. The training provider usually sends those selected a separate training invitation, specifying details on the start of the course and other arrangements. If you are not selected for the training you applied for, you should contact your employment office, which will help you find out about other training options. Page 3 3 Labour market training benefits 1 January 2008 During labour market training, students are entitled to training allowance or labour market support and also maintenance allowance. Those applying for training can also be reimbursed for costs incurred in the application. Reimbursement of application costs The employment office can reimburse those applying for labour market training for the costs of the return trip to the training selection location, any aptitude tests and familiarisation with the facilities, etc. If the training site is outside the participant00 commuting area, reimbursement can be granted for a single, one-way trip at the start of the training. The travel reimbursement rate is 0.21 euros per kilometre. Additionally, daily allowance and reimbursement for meals and accommodation costs can be granted in accordance with the travel compensation regulations laid down in the state collective agreement for civil servants. Training allowance and labour market support during training Training allowance Training allowance is available for students who have reached the age of 17 and who fulfil the time at work condition when losing their job or when starting training and whose maximum period for daily unemployment allowance has not been exhausted before the training starts. The wage earners time at work condition is fulfilled when the person has been in paid employment for at least 18 hours a week for 43 calendar weeks during the previous 28 months and has been paid in accordance with the relevant collective agreement. The time at work condition of a wage earner who has earlier (in 1997 or after) drawn daily unemployment allowance is fulfilled when he/she has worked for 34 calendar weeks during the past 24 months. An entrepreneurs time at work condition is fulfilled when he/she has worked for 24 months as an entrepreneur during the past 48 months and the business activities have been substantial. Training allowance is paid either as a basic allowance or as an earnings-related allowance. The basic allowance is equal to the basic daily allowance paid as unemployment security. In 2008, the basic daily allowance is 24.51 euros. The earnings-related allowance is paid to members of unemployment funds. It consists of a basic amount and an earnings-related amount. The basic amount is equal to the basic daily allowance paid as unemployment security. The earnings-related amount is 45 per cent of the difference between the daily pay and the basic amount. If the monthly pay is greater than 90 times the basic amount, the earnings-related amount is 20 per cent of the daily pay exceeding this limit. The earnings-related amount is payable to members of unemployment funds who are 1) unemployed or laid off, or 2) persons referred to in the Unemployment Security Act who are entitled to adjusted unemployment benefit (i.e. those on a shortened working week), or 3) under threat of unemployment; the employment office will inform the payer of the allowance about the existence of a threat of unemployment. Page 4 4 The earnings-related amount can be increased for a person who has 1) lost his/her job for economic or production-related reasons and has 2) been a member of a wage-earners00fund for at least five years and has 3) been working for at least 20 years before losing his/her job. When calculating the time at work condition, any period when the person has drawn e.g. maternity, paternity or parental allowance and any period during which he/she has been on care leave or has been a conscript or on non- military service is considered to be equivalent to time at work. The basic allowance can be increased for a person who meets the requirements stated in points 1 and 3. This additional sum is currently (2008) 4,21 euros per day. The earnings-related amount is increased to 55 per cent of the difference between the normal daily pay and the basic amount. If the monthly pay is more than 90 times the basic amount, the earnings-related amount 32.5 per cent of the daily pay exceeding this limit. The increased training allowance is not payable for the time during which the student receives an employment programme supplement. The employment programme supplement is payable to a student who participates in the training included in his/her personal employment programme and who: 1) has lost his/her job for economic or production-related reasons and has been working for a minimum of three years, or 2) has been on a fixed-term employment contract for a minimum of three years without interruption at the time the employment ends, or in fixed-term employment with one employer for at least 36 months within the previous 42 months at the time the employment ends; and, furthermore 3) has been insured with a wage-earners00fund for at least the previous 10 months before losing his/her job; and 4) has fulfilled the time at work condition for the daily unemployment allowance. A student entitled to basic allowance is paid an employment programme supplement if he/she fulfils the conditions stated in points 1, 2 and 4. In 2008, the employment programme supplement to the basic allowance was 4,21 euros per day. The employment programme supplement to the earnings-related allowance is 65 per cent of the difference between the daily pay and the basic amount. When the monthly pay is more than 90 times the basic amount, the employment programme supplement is 37.5 per cent of the daily pay exceeding this limit. If the student is not entitled to the earnings-related amount, he/she is not paid the employment programme supplement. The employment programme supplement can be paid for 185 days in total. This includes days for which the person has been paid daily unemployment allowance increased by the employment programme supplement. Persons supporting children (under 18 years of age) are also entitled to a child increase. The child increase is 4.64 euros per day for one child, 6.82 euros per day for two children and 8.79 euros per day for three or more children. The training allowance is payable for five days a week at most and is taxable income. The days for which training allowance is paid do not reduce the maximum period for receiving unemployment security. Page 5 5 Labour market support during training Unemployed persons aged 17-64, who are starting labour market training and who do not meet the time at work condition or for whom the maximum period for drawing daily unemployment allowance has already been used, are entitled to labour market support. Labour market support is equal to the basic daily allowance paid as unemployment security (24.51 euros per day). In 2008, the child increase for a person receiving labour market support is 4.64 euros per day for one child, 6.82 euros per day for two children and 8.79 euros per day for three or more children. Labour market support is payable for five days a week at most and is taxable income. Waiting period and qualifying period restrictions do not apply to labour market support paid during labour market training. The income of a spouse does not affect the amount of labour market support paid during training. Likewise, a person living in the same household as his/her parents will also receive the support in full during training. Restricted periods without benefit (waiting times) are not in force during training. Restrictions on receiving training allowance and labour market support Students receiving daily allowance or partial daily allowance pursuant to the Sickness Insurance Act do not have a right to receive training allowance or labour market benefit. Likewise, the student is not entitled to the benefits if he/she receives rehabilitation allowance or an indemnity for loss of income paid for rehabilitation under accident or third party motor insurance. A student is not entitled to labour market support if he/she is entitled to maternity, paternity or parental allowance. These benefits do not prevent the receipt of training allowance, but they do reduce the amount of the allowance. Reimbursement for maintenance costs Maintenance and accommodation allowance is paid as a reimbursement for the extra meal, travel and accommodation expenses incurred in the training. The prerequisite for this allowance is that the student is entitled to training allowance or labour market support. Maintenance allowance Maintenance allowance is a reimbursement for meal and travel expenses. The allowance amounts to 8 euros per day and is tax-free. Maintenance allowance is payable for five days a week and is paid for the whole of the training period, holidays excluded. Increased maintenance allowance Maintenance allowance can be increased when the student attends training outside his/her commuting area. Increased maintenance allowance is also payable to students who attend training within their commuting area but outside their home municipality and incur extra accommodation expenses as a consequence. In such cases, the student shall submit to the unemployment fund or the Social Insurance Institution a copy of the rental agreement or some other reliable account of the accommodation costs during the training. Each municipality has a specific commuting area confirmed by a decree of the Ministry of Labour. The employment office will inform the unemployment fund or the office of the Social Insurance Institution whether the training will take place outside the home municipality or commuting area. Page 6 6 The increased maintenance allowance is 16 euros per day and is payable for five days a week. The allowance is also a tax-free benefit. Reimbursement for maintenance and accommodation costs abroad If labour market training or related practical training is arranged abroad, the amount of maintenance allowance paid to the student is 50 per cent of the daily allowance paid to a civil servant for an official journey to the country concerned. The allowance is payable for seven days a week. A prerequisite for receiving the allowance is that the training abroad was agreed in the training procurement contract. Free accommodation is provided for students participating in the Nord training arranged by the Arctic Vocational Foundation. The students receive a maintenance allowance of 16.82 euros per day. The effect of income on benefits during training If the student has other income this will affect the amount of training allowance and labour market support he/she can receive, with the exception of the social benefits listed in chapter 4, section 7 of the Unemployment Security Act. These benefits include survivor00 pension, housing allowance, child allowance and conscript00 dependent allowance. Recipients of training allowance Wages and other earnings during training as well as other statutory benefits than the ones mentioned above affect the amount of the training allowance. The training allowance is reduced if the monthly income exceeds 127 euros. 80 per cent of the amount exceeding the protected amount reduces the training allowance. If the adjustment is four weeks, the protected amount is 118 euros. Recipients of labour market support Labour market support has no protected amount. 50 per cent of wages or other earnings reduce the amount of labour market support (adjusted labour market support). Other statutory benefits than the ones mentioned in chapter 4, section 7 of the Unemployment Security Act are reduced in full from the labour market support (reduced labour market support). Applying for benefits Applications for training allowance must be submitted in writing no later than three months after the training has started. Members of unemployment funds shall submit their applications to their own particular fund, and other students to the office of the Social Insurance Institution. Applications for labour market support shall be submitted to the office of the Social Insurance Institution. If the student is already receiving labour market support before the start of training, he/she will continue to receive it and no new application is required. Support for labour market training and other adult training benefits Neither student financial aid nor adult education allowance is payable to students participating in labour market training. Further information For further information on the financial benefits available during labour market training, please turn to the employment offices, the offices of the Social Insurance Institution or the unemployment funds . www.mol.fi - www.kela.fi - www.tyj.fi 3.1.2008

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