Changes to social assistance to take effect on 1 February 2026

The changes to be made to social assistance will, for example, strengthen the obligations of recipients to apply for full-time work and primary benefits. The overall reform of social assistance aims to clarify the role of social assistance as a last-resort and temporary form of assistance, prevent social exclusion among young people and strengthen general government finances.

In line with the Programme of Prime Minister Petteri Orpo's Government, the Government will implement a comprehensive reform of social assistance that will improve people’s ability to live independently, reduce long-term dependency on social assistance and clarify the role of social assistance as a last-resort discretionary cash benefit included in basic income security.

Parliament has adopted the amendments to the Social Assistance Act, the Act on the Processing of Client Data in Healthcare and Social Welfare and the Act on Rehabilitative Work. The President of the Republic is to approve the bills on the 16th of January 2026. Most of the amendments will enter into force on 1 February 2026.

Strengthening the obligation to apply for full-time work and primary benefits

The amendments will impose a stronger obligation on social assistance applicants to apply for primary benefits instead of social assistance. The primary benefits include unemployment security benefits and student financial aid. If an adult applicant has not applied for a primary benefit payable, for example, on the basis of studies, unemployment, illness or incapacity for work before applying for social assistance, the Social Insurance Institution of Finland (Kela) must assess whether they qualify for such a benefit. If, before applying for social assistance, the person fails to apply for primary benefits within one month of being requested to do so by Kela, the basic amount of social assistance will be reduced by 50 per cent, unless the individual-specific or family-specific consideration of reasonableness prevents this. 

In future, the obligation to register as an unemployed jobseeker will mean seeking full-time work. Thus, it will also be obligatory to seek full-time work on pain of the basic amount being reduced in cases where a person who has the capacity and ability to work does not work full-time, business activities are not profitable or a person is not entitled to receive student financial aid for their studies. If the applicant fails to do as requested within the set time limit, the basic amount of social assistance will be reduced by 50 per cent.

One of the aims of the amendments is for social assistance applicants to secure their livelihoods primarily by engaging in gainful employment, or if this is not possible, by applying for primary benefits before social assistance. Another aim is for unemployed people to always register as jobseekers seeking full-time work and, at the same time, to transfer to employment-promoting services and to have their need for services assessed.

The basic amount can be reduced in the above-mentioned situations only if this does not endanger the means of support necessary for a life of dignity and if the reduction cannot be considered otherwise unreasonable.

Process of reducing basic amount due to unemployment sanctions to be streamlined

If the payment of the unemployment security benefit granted to a social assistance recipient is suspended due to sanctions laid down in the Unemployment Security Act, the basic amount of social assistance will be reduced, unless the individual-specific or family-specific consideration of reasonableness prevents this. The duration of the reduction will depend on how long the unemployment security benefit remains suspended, but it will not exceed six months. The reduction will be 20 per cent for the first month and 40 per cent thereafter. These percentages remain unchanged from the current legislation. 

The same reduction – 20 per cent for the first month and 40 per cent thereafter – will also apply to immigrants whose need for social assistance arises from failure to comply with their integration plan but who are not obligated to register as unemployed jobseekers with the employment authority. In these situations, the existing two-month time limit for the reduction period will remain in place.

Social assistance applicants can always avoid both the reduction and unemployment benefit sanctions by participating in employment services or following their integration plan as required by law.

The basic amount can be reduced in the above-mentioned situations only if it does not endanger the means of support necessary for a life of dignity and if the reduction cannot be considered otherwise unreasonable.

Changes to municipal funding shares and income consideration in social assistance

To help prevent social exclusion among young people, the municipalities’ funding share of basic social assistance will rise from 50 per cent to hundred per cent for social assistance recipients aged 18–24 who do not have people of other ages living with them in the same household. This cost will be fully reimbursed to municipalities. The aim is to encourage municipalities to help young people into employment as quickly as possible, so that support periods remain as short as possible. This change will take effect at the beginning of 2027.

Social assistance will no longer have the earned income allowance of EUR 150 for people aged 18 and over. In future, all other small income and subsidies will also be fully counted as income for those aged 18 and over. However, the earned income allowance of EUR 150 will continue to apply to the fees payable to informal caregivers and family carers until the end of 2027. For those under 18, earned income and gifts that are considered small will not be counted as income in the future either when calculating social assistance.

Changes to social assistance seek to achieve savings in general government finances

The overall reform of social assistance is estimated to directly strengthen general government finances by EUR 70 million once fully implemented, taking into account changes to benefits and tax revenue. The reform is expected to increase implementation costs by a total of EUR 18 million. It is also estimated to boost employment by 1,200 people, which would strengthen general government finances by around EUR 29 million. In 2024, Kela paid a total of about EUR 825 million in basic social assistance.

To achieve the savings target, the level of the basic amount of social assistance will also be cut as follows:

• 3 per cent for people aged 18 and over who live alone. 
• 3 per cent for people aged 18 and over who live with their parents. 
• About 2 per cent for other people aged 18 and over.

For example, for those aged 18 and over who live alone, the cut will reduce the basic amount of social assistance by EUR 17.80 at the 2025 level. The cuts will apply only to the basic amounts of those aged 18 and over. The basic amount of social assistance for people under the age of 18 will increase slightly (0–0.7 per cent), which will reduce the impact of the changes on families with children.

The Government has not made any changes to index increases to the basic amount of social assistance. Instead, benefits will be increased in accordance with the national pension index at the beginning of 2026.

• Parlamentary reply (in Finnish)
• Social assistance
• Stricter criteria for social assistance as of February – what does it mean for customers? (Kela)

Inquiries

Liisa Siika-aho, Director General, tel. +358 295 163 085, [email protected]
Annu Jaakkola, Special Adviser to the Minister of Social Security, tel. +358 29 516 3330, [email protected]