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Basic income pilot study

The basic income experiment is part of the key project ‘Services to be based on customer needs’ of Prime Minister Juha Sipilä’s Government. Its aim is to explore whether basic income could be used to reform the social security system so as to reduce incentive traps relating to working. The Government aims to foster an experimental culture, and the basic income experiment is one of the Government’s six ongoing experiments.

In the Government, the implementation of the basic income experiment will be coordinated by the ministerial working group for health and wellbeing, chaired by Pirkko Mattila, Minister of Social Affairs and Health.

Ministerial working groups and ministers responsible for key projects

The experiment is being implemented in phases

The basic income experiment is being implemented in phases. It started with a survey project on the implementation of basic income, carried out by a group of researchers from the Research Department of the Social Insurance (Kela) and from other research institutes. The group was chaired by Professor Olli Kangas from Kela. The research group published its preliminary report on 30 March 2016 and its final report on 16 December 2016.

An act enabling the basic income experiment entered into force on 1 January 2017. The experiment started at the beginning of 2017. The primary goal of the basic income experiment is related to employment promotion. The experiment, including a follow-up research, aims to find out whether basic income promotes employment. It is implemented by Kela.

Basic income experiment in 2017–2018 

  • Goal: To obtain information on the effects of basic income on the employment of persons participating in the experiment, and to survey other impacts of basic income.
  • Level of basic income: EUR 560 per month, tax free benefit. According to calculations, this should produce an adequate incentive effect encouraging people to accept temporary and part-time work.
  • Target group: Persons between 25 and 58 years of age living in Finland who in November 2016 receive basic daily allowance or labour market support under the Unemployment Security Act.
  • Sample: Representative random sample of 2,000 persons covers the whole country. It is mandatory to participate in the experiment. The rest of the target group forms a control group. Mandatory participation enables a more reliable follow-up and assessment of the results.

 

Inquiries:

Ministry of Social Affairs and Health, (legislation concerning the basic income experiment):
Liisa Siika-aho, Director tel. +358 2951 63085, firstname.lastname@stm.fi

The Social Insurance Institution of Finland (Kela)
Olli Kangas, Director of Community Relations, Professor tel. +358 400 261 150,firstname.lastname@kela.fi

The Government's survey and research activities
Sari Löytökorpi, Project Manager tel. +358 2951 60187, firstname.lastname@vnk.fi