The amount of the employer’s restructuring protection fee depends on the employee’s restructuring protection allowance. Restructuring protection allowances are paid by the Social Insurance Institution of Finland (Kansaneläkelaitos, Kela) or the employee’s unemployment fund.
The amount of the employee’s restructuring protection allowance is calculated taking into account the employee’s earnings in the employer’s service during the 12 calendar months preceding the date of termination. Only earnings on which the employer has paid an unemployment insurance contribution are taken into account. The amount of the employee’s restructuring protection allowance is calculated by dividing the aforementioned amount by 12.
Only the amount earned in the service of the employer who is now terminating the employee’s contract is calculated in the amount of the restructuring protection allowance. Any amounts that the employee may have been paid by other employers are not taken into account.
The employee’s average monthly earnings are calculated based on their pay during full calendar months. If, for example, the employee’s contract is terminated in June, their pay in May is the last one that is taken into account. The date on which the employee was paid matters and not the period during which the pay was earned. The restructuring protection allowance is calculated based on the employee’s pay over the previous 12 calendar months even if the employee has had unpaid leave during that period.