General social security benefit to simplify social security – Ministry of Social Affairs and Health requests comments on the first stage of introducing general social security benefit

The Ministry of Social Affairs and Health requests comments on a draft government proposal concerning the general social security benefit by 19 June 2025. This is the first stage of the extensive social security reform where different basic social security benefits will be gradually combined into a single general social security benefit.

Step towards a simpler social security system

“The general social security benefit reform will improve the profitability of work and simplify social security. 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,” says 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, clients 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.

Aiming to prevent prolonged unemployment and social exclusion

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.

Preparation of new benefit model advances in stages

In line with the Programme of Prime Minister Petteri Orpo's Government, the Government will implement a reform of basic social security to improve the profitability of work, streamline social security and simplify benefits, taking into account the recommendations and reports issued in the Social Security Committee’s interim report. 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.

In the first stage, the benefit will simplify social security for the unemployed by replacing the labour market support and basic unemployment allowance. In the next stage, the Government will continue harmonising and combining basic social security benefits and incorporating the current housing allowances gradually into the general social security benefit.

The first stage of the model for the general social security benefit was prepared by experts from the Ministry of Social Affairs and Health, the Ministry of Economic Affairs and Employment, the Ministry of Finance, the Finnish Institute for Health and Welfare and Kela.

Model for general social security benefit is based on Parliamentary Social Security Committee’s work

The Parliamentary Social Security Committee, which consists of representatives of all parliamentary groups, proposed in its interim report that basic social security benefits be harmonised and combined. The model for the general social security benefit will be implemented as a government project in line with the Government Programme, taking into account the recommendations and reports issued in the Social Security Committee’s interim report.

The purpose of the new benefit model is to respond to the challenge highlighted by the Committee that services and benefits need to be better coordinated in situations where receiving benefits has taken a long time.

The Social Security Committee monitors the preparations for launching the general social security benefit. During this parliamentary term, the social security reform includes both government projects and the work of the Social Security Committee.

• Social security reform

Consultation period ends on 19 June 2025

Comments on the draft government proposal can be submitted between 9 May 2025 and 19 June 2025. 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.

With respect to the service process for jobseekers, the government proposal on the general social security benefit is closely linked to the government proposal prepared by the Ministry of Economic Affairs and Employment concerning the development of the service process for jobseekers and employment services. The Ministry of Economic Affairs and Employment has also prepared amendments to the provisions on the unemployment security sanctions laid down in the Unemployment Security Act (1290/2002). If implemented, these amendments would also apply to the recipients of the general social security benefit.

• Lausuntopalvelu.fi (service for online consultation): Government proposal for legislation on the general social security benefit Link to an external website(in Finnish)
• Frequently asked questions about the general social security benefitFile opens in a new tab pdf 218kB (in Finnish)

A discussion event on the model for the general social security benefit and its future course will be held for stakeholders after the summer.

Inquiries

Sakari Rokkanen, Special Adviser to the Minister of Social Security, tel. +358 295 163 560, firstname.lastname@gov.fi
Liisa Siika-aho, Director General, tel. +358 29 516 3085, firstname.lastname@gov.fi