Government to merge unemployment benefits into single payment
Kela’s Director General Outi Antila, Minister of Social Security Sanni Grahn-Laasonen, and Ministry of Social Affairs and Health department head Liisa Siika-aho at the ministry’s press briefing in Helsinki on 9 May 2025. Photo: Roni Rekomaa / Lehtikuva
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Finland’s Ministry of Social Affairs and Health announced plans on Friday to combine two core unemployment support schemes into a single benefit.
The reform would see the labour market subsidy and the basic unemployment allowance, both currently managed by the Social Insurance Institution (Kela), replaced by one unified payment. The ministry confirmed that although the system will change, the amount of money paid out to individuals will remain the same.
Liisa Siika-aho, director of the ministry’s benefits division, said the move is part of a broader push to simplify Finland’s social security system. “In the future, we will only have one basic unemployment benefit,” she said at a press conference.
The new benefit, referred to in initial documentation as a general social security benefit, is expected to take effect at the beginning of next year. The proposal will now go through a public consultation period until Midsummer.
The ministry also aims to simplify the application process by introducing a single digital form for multiple types of support. According to outgoing Kela Director Outi Antila, most applications are already submitted online, but the new system will streamline access further.
“People already receive similar services when they visit Kela in person. Now we want to replicate that ease of access digitally,” Antila said.
Minister of Social Security Sanni Grahn-Laasonen (NCP) said the goal is not just administrative efficiency but also to reduce long-term unemployment. “Those unemployed for longer periods should receive more in-person support. We want to prevent marginalisation,” she said.
As part of the reform, an activation model will be introduced for people who remain unemployed for extended periods. According to Siika-aho, activation measures will begin after eight months for people under 25 and after 18 months for those over 25.
“The idea is to meet with unemployed people more frequently and arrange support services tailored to their situation,” she said.
The activation model includes meetings with employment authorities and personalised service planning, though the ministry has not yet detailed the criteria for compliance or potential consequences for non-participation.
The reform is part of a wider government agenda to increase employment and reduce benefit dependency while simplifying Finland’s complex benefits system.
HT
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Source: www.helsinkitimes.fi