Large number of changes planned for Finnish social security in 2024

The Government is preparing to implement many changes to Kela benefits, affecting both benefit rates and eligibility criteria. The planned changes were outlined in the Government programme. Some of the changes will be made effective over the course of the year, and not immediately at the beginning of 2024.

The Government programme outlines a large number of changes to social security in 2024. The Ministry of Social Affairs and Health will prepare the Government’s proposals, which will then be submitted to Parliament. 

Based on the currently available information, there will be cuts next year to unemployment benefits, general housing allowances and other benefits. Child benefits and the Kela reimbursements for private doctor consultations will be raised.

More detailed information will become available once the Government’s legislative proposals have been finalised. Kela will actively inform its customers of any changes to come throughout the autumn.

Pensions, disability benefits, and the housing allowance for pensioners

The pensions paid by Kela (national pension and guarantee pension), along with disability allowances and front-veterans’ supplements, are routinely increased each year in line with the National Pensions Index. The percentage of increase will become known on 13 October 2023, when Kela is scheduled to confirm the National Pensions Index that will be applied starting 1 January 2024.

The grounds of eligibility for the housing allowance for pensioners will remain the same as this year in 2024. 

Unemployment benefits

The amounts of the unemployment benefits paid by Kela (labour market subsidy and basic unemployment allowance) will remain unchanged in 2024 (37.21 euros per day), if the Government’s planned indexation freeze is approved by the Parliament. 

A large number of changes are being prepared to unemployment benefits. Some of them are planned to come into effect at the turn of the year, others later. The waiting period for unemployment benefits will be lengthened from five to seven days at the beginning of next year. Compensations for accrued but untaken annual leave, paid upon termination, will also be factored in when determining the start of unemployment benefits.  

It is planned that, starting 1 April 2024, unemployment benefits will no longer be supplemented by child increases. Child increases have been paid to unemployed jobseekers with dependent children. In practice, this will mean a 10–20 percent reduction in labour market subsidies and basic unemployment allowances. The rules for adjusting unemployment benefits to earnings will be revised as well.  Unemployment benefit recipients can currently earn up to 300 euros per month without it affecting their benefits, but there are plans to remove this exempt amount.

The work requirement that employees must meet to qualify for unemployment benefits is planned to be extended from 6 to 12 months. This change is scheduled to take effect in September 2024. Further, the requirement would be met by earning a certain amount of income and not by working a certain number of hours per week as is currently the case.

Child benefits and child care allowances

Child benefits are planned to be increased initially at the beginning of 2024, with a subsequent increase to follow later in the year. Specifically, the increases will raise child benefits and single-parent supplements for children under three, as well as introduce a higher rate of child benefit for the fourth child and for the fifth and all subsequent children.    

Child care allowances will not be index adjusted at the turn of the year as would usually be the case. Rather, the rates of the allowances will stay the same as in 2023, provided that Parliament approves the Government’s proposal for an indexation freeze.

Read more