Age limit for earnings-related allowance rises to 18 years in August
Following a change made to the Unemployment Security Act, as of 1 August 2021 earnings-related allowance can only be paid to persons who have reached the age of 18 years. This change to the law also means that one year from now, from 1 August 2022, persons aged under 18 years can no longer accrue the work requirement.
From 1 August 2021, unemployment security benefit is not granted to jobseekers aged below 18 years. Previously the age limit was 17 years.
Under the new legislation, if you have completed your compulsory education before the age of 18 years you may be entitled to unemployment security benefit already at the age of 17 years.
Persons aged under 18 may be entitled to earnings-related allowance if they have:
- accrued the 26-week work requirement before 1 August 2022 and
- completed compulsory education or put compulsory education on hold in accordance with the Act on Compulsory Education.
The entry into force of the change does not depend on whether an individual is subject to the new or the old legislation on compulsory education. Individuals covered by the old legislation will have completed their compulsory education by 1 August 2021, however.
Only persons aged over 18 years can accrue the work requirement
The age limit for payment liability for unemployment insurance contributions will increase to 18 years from 1 August 2022. In practice this means that from 1 August 2022 persons aged under 18 cannot accrue the work requirement.
The work requirement can only be accrued from periods for which membership fees have been paid. Since under-18s do not have payment liability for membership fees, they cannot accrue the work requirement either.
17-year-olds who are getting earnings-related allowance in July this year will also get their allowances after 1 August 2021. This is because their work requirement has been accrued before 1 August 2022 and their compulsory education has been fulfilled.