The government proposed a plan to reform the social security benefits where different basic social security benefits will be gradually combined into a single general benefit.
The Ministry of Social Affairs and Health prepared a draft proposal and requested comments on it by June 19, said the ministry in a press release on Friday.
The government proposal for the first stage of introducing the general social security benefit is due to be submitted to Parliament in autumn 2025. The legislation should enter into force in early 2026.
“In the first stage, the benefit will simplify social security for the unemployed by replacing the labour market support and basic unemployment allowance. Social security will also be streamlined by introducing a single application model for Kela,” said Minister of Social Security Sanni Grahn-Laasonen.
In the first stage, the general social security benefit would be a new social security benefit for unemployed jobseekers, replacing the labour market support and basic unemployment allowance paid by the Social Insurance Institution of Finland (Kela).
This would mean that the systems for labour market support and basic unemployment allowance be abolished.
The general social security benefit would be paid if an unemployed jobseeker was not entitled to the earnings-related unemployment allowance or their period of earnings-related unemployment allowance had ended and they needed financial support.
The level of the general social security benefit would be the same as that of the current labour market support, basic unemployment allowance and basic amount of earnings-related unemployment allowance (EUR 37.21 per day in 2025).
The condition for receiving the general social security benefit would be that the person is in need of financial support. This means that the benefit would be granted on a discretionary basis (similarly to the current labour market support). The general social security benefit would taper against increasing income from work linearly.
In other words, the earned income of those receiving the benefit would be adjusted as is currently done regarding unemployment security.
The general social security benefit would be granted and paid by Kela, and it could be applied for by using the single application model. Kela will adopt the single application model for the unemployment benefit and housing allowance at the latest when the general social security benefit is introduced.
In future, people could apply for several benefits from Kela easily by using a single application form. They would not need to know the benefit system in detail; instead, they would be guided to apply for the right benefits, according to their life situations.
As part of the first stage of launching the general social security benefit, the aim is also to prevent prolonged unemployment and social exclusion. A particular objective is to shorten the periods of unemployment among young people.
For this reason, it is proposed that, in addition to the usual services for the unemployed provided by the employment areas, a clearer model for intervention that supports unemployed people be introduced for situations when unemployment is prolonged.
When jobseekers under 25 years of age would have received the general social security benefit for eight months or jobseekers aged 25 or over would have received the benefit for 18 months, they would take part in an activation period meant for those receiving the general social security benefit.
The activation period would include job search discussions where jobseekers are met face-to-face and their need for services is assessed, with a particular focus on the reasons for their prolonged unemployment. The purpose of the activation period is to ensure more clearly that unemployed people receive support in case of prolonged unemployment, while also leaving room for the employment areas, which started operating at the beginning of this year, to make arrangements for the practical implementation.
The reform aims to gradually combine different basic social security benefits into a single general social security benefit that will include a basic allowance for living costs, an allowance for housing costs and a discretionary allowance as last-resort social security.
Source: www.dailyfinland.fi
