Töötukassa: What benefits can you get if you lose your job?

Losing a job is always a significant problem. Especially if the dismissal comes unexpectedly. Often in such situations, a person becomes stressed and doesn't know what to do, mentally preparing to take any job they can find. However, don't be quick to get upset. It's quite possible that the dismissal has given you time to find a more suitable job or change your qualifications. And during your search or training, the Estonian Unemployment Insurance Fund (Estonian: Töötukassa) can help with financial benefits.

The Estonian Unemployment Insurance Fund was established back in 2001 based on a regulation by the Government of the Republic, which also prepared the statute explaining the rules under which this public legal entity operates.

The main goal of this organization is to help citizens during periods when they are not working. And over the last two and a half decades, they have streamlined their processes so that today they can not only help with finding a new job but also provide financial support.

There are three main types of financial assistance:

• Unemployment allowance;
• Unemployment insurance benefit;
• Allowance for loss of capacity for work.

Let's look at each type in more detail.

Unemployment Allowance
This type of benefit is intended for all citizens who need material support during a period when they are officially unemployed. The Fund will pay you 13.23 euros for each day you are without work. However, to receive it, there are several mandatory conditions:

• You must be registered as unemployed. This condition is easily met by registering on the website www.tootukassa.ee and filling out the unemployment form.
• Your net monthly income must be less than 410.13 euros. In other words, you must earn per day less than the unemployment allowance rate, which is 13.23 euros. Note that the income amount includes not only an official salary but also other sources of income - scholarships, profit from renting out property, dividends from stocks, etc.
• Your work history must include at least 180 working days in the last year. In other words, you can only qualify for the allowance if you have been officially employed for six months in the past year. Furthermore, temporary work can be considered as primary employment if you earned more than 354.40 euros per month in that job.

If you meet the above conditions, you just need to visit the Fund (Töötukassa), register, and attend a consultation. After it concludes, within five working days, you will receive the allowance, which will be calculated retroactively.

Unemployment Insurance Benefit

This type of benefit allows you to receive 60% of your previous salary for the first 100 days after unemployment, and then 40% for each subsequent day. This is more substantial assistance than the basic unemployment allowance, but it requires meeting stricter conditions, namely:

• A valid reason for job loss. This is one of the most important conditions for receiving the benefit. There is a list of reasons for which you can receive insurance compensation. All of them are related to losing your job not by your own choice. For example, if you were laid off, the company you worked for was liquidated, or your contract for services or fixed-term employment contract ended. Valid reasons also include the employer terminating your employment contract due to health reasons, lack of sufficient work skills, or if you had to terminate the contract because the employer reduced your salary. However, termination by mutual agreement or dismissal due to your fault (you are guilty of causing damage to the company) is not considered a valid reason.
• An insurance record of at least 12 months in the last three years. The insurance period accumulates when you are officially employed, receive a salary, and pay taxes. Importantly, the insurance record does not include maternity leave, paternity leave, parental leave, or temporary incapacity for work (sick leave).

The procedure for applying for the insurance benefit is the same. You must register with the Fund (Töötukassa), submit an application for the unemployment insurance benefit, and after verification of all circumstances, provide your bank account number to receive the money.

Allowance for Loss of Capacity for Work

This type of financial assistance is intended for Estonian citizens or residents (with a residence permit or right of residence) who have serious health problems. The main condition for receiving the benefit is an assessment of your work ability conducted by the Fund. If the assessing committee determines that you are fully or partially unable to work, you can receive financial assistance. The amount of the benefit is also determined during the committee's assessment.

Thus, the Estonian Unemployment Insurance Fund provides financial assistance to a wide range of citizens, offering at least partial security for the future. The conditions for receiving support are so simple and clear that they allow both young people and those nearing retirement age to seek help.