Effect of job alternation leave on pension amount
Taking a job alternation leave will decrease your pension. The longer you are on job alternation leave, the more your pension will decrease because less pension is accrued during the leave than during your period of employment.
During your job alternation leave, your earnings will be calculated as 55% of the earnings on which the job alternation compensation is based. You will accrue 1.5% pension on these earnings regardless of your age.
Transferring directly to old-age pension from job alternation leave
If you are approaching your old-age pension age, you need not necessarily return to work after the job alternation leave, instead you can transfer directly to an old-age pension. Your municipal employment or service contract needs to have been in force up to your retirement.
General guidelines for planning job alternation leave
You can take a job alternation leave with your employer’s consent if you have been at the same workplace for at least a year and have worked altogether for at least ten years. If you decide to take a second job alternation leave, you need to have been at work for at least five years since the end of the previous leave.
Your employer needs to hire an unemployed person.
A job alternation leave can last 90- 359 days.
A job alternation leave agreement concluded with the employer needs to be delivered to the Employment and Economic Development Office before the start of the leave. The Employment and Economic Development Office will issue a statement concerning the job alternation compensation. The Social Insurance Institution or an unemployment benefit fund will pay the job alternation compensation.
