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Supplementary unemployment benefit, AGE

Supplementary unemployment benefit (AGE) from TRR supplements what you receive from the union unemployment insurance fund if you have been made redundant because of work shortage. The company you work for has to be affiliated to TRR.

To be entitled to supplementary unemployment benefit (avgångsersättning, AGE), certain basic conditions must be met.

You must

  • have a monthly salary of 27,100 SEK or more
  • be at least 40 years of age on the last day for which you received any salary
  • have been made redundant due to work shortage or have chosen to terminate your employment by means of a voluntary agreement with your employer
  • have worked for a company which is affiliated to TRR for a minimum of 5 years (previous work periods with companies affiliated to TRR count towards the 5 years if you were made redundant there due to shortage of work)
  • be actively looking for work (minimum 20%) and either enrolled with the Swedish Employment Agency "Arbetsförmedlingen" or be engaged in some sort of retraining scheme.

How AGE works

AGE is a complement to the union unemployment insurance fund and adds to your compensation. If you have income protection insurance it will provide additional compensation. Get in touch with your income protection insurance company or your trade union to find out how much you are entitled to from them.

  • Salary up to 27,100 SEK is covered by the union unemployment insurance fund “a-kassa”

    Supplementary unemployment benefit (AGE) is financial compensation which supplements the union unemployment insurance fund. If your monthly salary was under 27,100 SEK on the last day you received salary, at least 70 per cent will be covered by the union unemployment insurance fund. In that case you will not be entitled to supplementary unemployment benefit (AGE).

  • AGE will bring you up to 70 per cent

    If your monthly salary was over 27,100 SEK, the union unemployment insurance fund will cover less than 70 per cent of the salary you used to receive. In that case AGE will supplement the union unemployment benefit and bring it up to 70 per cent.

  • AGE if you are not a member of a union unemployment insurance fund

    If you are registered as a jobseeker at the Swedish Employment Agency ("Arbetsförmedlingen"), without being a member of a union unemployment insurance fund, the amount you receive from AGE is calculated as if you were a member. This is a situation in which self-employed people might also find themselves, when they receive no compensation from a union unemployment insurance fund.

  • AGE and income protection insurance

    Quite often income protection insurance is included in the fees which members pay to their union. It often covers up to 80 per cent of the employee's previous salary. AGE compensates employees for up to 70 per cent of their salary and the income protection insurance is on top of that.

  • Compensation periods vary

    For the first 130 days, everyone aged 40 and over receives compensation up to 70 per cent of their previous salary before tax. For anyone aged from 45 to 59, AGE is payable for another 130 days at up to 50 per cent of their previous salary. Anyone aged 60 to 65 is entitled to a further 130 days at up to 50 per cent of their previous salary.

How much do you get?

The amount of compensation you get depends partly on your age on the last day for which you received any salary and partly on what your monthly income was when you were made redundant.

The union unemployment insurance fund will cover a maximum of 80 per cent of a monthly income under 27,100 SEK. Therefore no compensation from AGE will be paid to anyone whose monthly income was less than that.

Compensation rates

Choose from the alternatives below to find out how many days’ compensation you are entitled to and what that compensation would be, depending on your monthly income.

Monthly income when you received notice that you were to be made redundant (before tax)
Your age on the last day you were paid your salary
Number of days with compensation :
Level of compensation :

Example

  • If you are 46 years of age and have a monthly income of 30,000 SEK, you would receive 130 days' compensation from TRR.
  • If you are 46 years of age and have a monthly income of 35,000 SEK, you would receive 260 days' compensation from TRR.

Work out your supplementary unemployment benefit (AGE)

Your entitlement to AGE and the amount to which you are entitled depends on several factors. When you file an application with TRR, we assess your right to compensation. You can see below how much you might be entitled to.

AGE is based on your monthly income

AGE is based on the monthly income you received when you were given notice that you were going to be made redundant. Your monthly income, or pensionable salary, is the amount your employer reports for your company pension scheme (ITP2), excluding holiday compensation.

Your monthly income includes:

  • your normal monthly salary
  • commission and bonus (commission on profit)
  • compensation for shift work, stand-by duty, night and weekend work
  • free board and lodging.

Your monthly income does not include:

  • compensation for overtime
  • holiday bonuses
  • the use of a company car
  • subsidised accommodation.

More information about ITP, on Collectum.se

If your salary increases after you have been given notice, your monthly income, upon which your supplementary unemployment benefit (AGE) is based, may increase too (by a maximum of 5 per cent per annum).

Compensation from AGE is not pensionable - it has no bearing on your future pension.

When do you receive AGE?

The earliest you could receive your first supplementary unemployment benefit payment would be the day after the final day of your notice period or redundancy pay.

How is AGE paid?

If your AGE amounts to less than 6,000 SEK for 130 days, it would be paid to you as one single sum. If your supplementary unemployment benefit (AGE) for 130 days amounts to more than 6,000 SEK then:

  • Your first payment would be for the 30 days following your last day with a salary or redundancy pay.
  • All your subsequent payments of AGE (supplementary unemployment benefit) would be for the following 10 days.

TRR makes these payments in advance. Before each payment you need to certify that you are looking for a job. This you can do on our website, TRR Online, which you can access as soon as you are one of our clients.

If you give us permission (via TRR Online) to access your details registered with your union unemployment insurance fund, you only need to certify once that you are looking for a job. After that you will receive your AGE payments automatically.

Unlike the union unemployment insurance funds, TRR has no qualifying period. This means that you would receive AGE even during the qualifying period of the union unemployment insurance fund (normally 6 days, when you would receive no payment at all).

We have included a few examples to show you how we work out how many days' AGE are due for your next payment.

Example 1

  • TRR has paid your AGE for 30 days.
  • You certify that your union unemployment fund has paid you for 24 days.

Your next AGE payment would cover 10 days.

How we worked it out


-  30   days' supplementary unemployment benefit
          (AGE) already paid
+   6   days' qualifying period
+ 24   days' compensation from union unemployment
          insurance fund
+ 10   days' supplementary unemployment benefit
          (AGE) to be paid in advance


= 10   days' supplementary unemployment benefit
          (AGE) in your next payment

Example 2

  • TRR has paid your AGE for 30 days.
  • You certify that your union unemployment fund has paid you for 30 days.

Your next AGE payment would cover 16 days.

How we worked it out


-  30   days’ supplementary unemployment benefit
          (AGE) already paid
+   6   days’ qualifying period
+ 30   days’ compensation from union unemployment
           insurance fund
+ 10   days’ supplementary unemployment benefit
          (AGE) to be paid in advance


= 16   days’ supplementary unemployment benefit
          (AGE) in your next payment

Example 3

  • TRR has paid your AGE for 75 days.
  • You certify that your union unemployment fund has paid you for 103 days.

Your next AGE payment would cover 45 days.

How we worked it out


-   75    days’ supplementary unemployment benefit
            (AGE) already paid
+    6    days’ qualifying period
+104    days’ compensation from union unemployment
             insurance fund
+  10    days’ supplementary unemployment benefit
            (AGE) to be paid in advance


=  45    days’ supplementary unemployment benefit
            (AGE) in your next payment

Supplementary unemployment benefit (AGE) stops the month before you turn 65.

Contact Swedbank

We use Swedbank for AGE payments. If you are going to receive payments from TRR, you need to contact Swedbank to arrange for the money to be paid into your bank account.

There are two ways of doing this:

  • Contact one of the Swedbank branches to notify them that you will be receiving payments from TRR.
  • If you have some means of electronic identification, you can notify Swedbank online via their account register that you will be receiving payments from TRR.

If Swedbank has no record of your bank account, a bank cheque (utbetalningsavi) will be sent to your registered address.

AGE in more detail

Your AGE starts, i.e. your payments start, on the day when you no longer receive any salary or redundancy pay from your employer. If your employer has been declared bankrupt, AGE-payments start when you no longer receive payments via the Swedish state wage guarantee.

In order to receive TRR's supplementary unemployment benefit (AGE), you must be registered as a jobseeker with the Swedish Employment Agency (Arbetsförmedlingen). People who are self-employed may also be entitled to compensation.

Starting your own business

If you start your own business or reactivate a dormant one while you are being paid AGE, your compensation will be as follows:

If you have been awarded AGE for 130 days
The date on which you start your own business or reactivate a dormant one during the period you receive AGE will not affect your total of 130 days' compensation.

Example

  • You have been awarded AGE for 130 days and had been registered as a jobseeker for 72 days when you started or reactivated your own business:
    You will be paid AGE for 72 days plus 58 days, i.e. for a total of 130 days.

If you have been awarded AGE for 260 or 390 days
The day you start your own business or reactivate a dormant one would mark the beginning of a new period for AGE payments, comprising a maximum of 130 days.

Example

  • You have been awarded AGE for 260 or 390 days and were looking for new employment for 72 days when you started or reactivated your own business:
    You will be paid AGE for 72 days plus 130 days, i.e. for a total of 202 days.
  • You have been awarded AGE for 260 days and were looking for new employment for 258 days when you started or reactivated your own business:
    You will be paid AGE for 258 days plus 2 days, i.e. for a total of 260 days.

Pension

If you have started payments from your early retirement scheme, you may still be entitled to some redundancy pay if you are registered as a jobseeker with the Swedish Employment Agency.

Payments of supplementary unemployment benefit (AGE) continue until the month before you turn 65.

Example

  • If you are 65 on the 25th June, AGE will be paid until the 31st May.

Sickness compensation/disability compensation and AGE

If you are unfit to work full-time, you may be entitled to sickness/disability compensation from the Swedish Social Insurance Agency. If you receive full sickness/disability compensation you will not be entitled to AGE. If you receive part-time sickness/disability compensation and are registered as a jobseeker with the Swedish Employment Agency (Arbetsförmedlingen), you may be entitled to supplementary unemployment benefit (AGE).

Temporary suspension of payment

Any period when you are temporarily employed, studying, ill or on parental leave or holiday, would be regarded as a hiatus. Your supplementary unemployment benefit (AGE) would be suspended and you would not receive payments for that period. If you have AGE left to pay out, your payments would resume when the hiatus is over.

If you are registered as a jobseeker with the Swedish Employment Agency during the hiatus, you may be entitled to AGE.

In certain cases, we will need a statement
If you reapply to TRR after being temporarily employed, we will need a statement from your employer to verify what sort of job it was. If you have been on parental leave, studying or ill, we may need written confirmation of this too.

If you have any questions about temporary suspension of AGE payments, please contact us.

Working out how much AGE you would be entitled to

TRR works out how much AGE you would be entitled to, according to a formula. First of all, we take your monthly income multiplied by 70 per cent or 50 per cent. The sum would be then be divided by 21.67 days (the average number of working days per month). After that, we subtract the amount you are paid (per day) from your union unemployment insurance fund.

To simplify matters, TRR uses the average daily compensation from a union unemployment fund, 875 SEK per day, for the first 130 days a person is entitled to compensation.

Day 1 - 130:

Day 131 - 390:

Ceiling for AGE

If you have been made redundant after 15th June 2015, TRR compensates monthly incomes up to 1.4 times the Swedish income base amount (inkomstbasbelopp) per month.

Working out the ceiling for your AGE

When were you made redundant?
Swedish income base amount
0kr
Salary cap for AGE
0kr
Day 1-130
0 kr/day
Day 131-390
0kr/day
Swedish income base amount
0 kr
Salary cap for AGE
0 kr
Day 1-130
0 kr/day
Day 131-390
0 kr/day

If you were made redundant before the 15th June 2015, the maximum amount of compensation you can receive is 200,070 SEK, over a period of 130 days. 


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