New general social security benefit to replace labour market subsidy and basic unemployment allowance as from 1 May 2026
In the first stage, the general social security benefit will be a new social security benefit for unemployed jobseekers, replacing the existing labour market subsidy and basic unemployment allowance. The legislation on the general social security benefit is scheduled to enter into force on 1 May 2026.
The general social security benefit will be paid if an unemployed jobseeker does not qualify for or has used up their earnings-related unemployment allowance and they need financial support. The amount of the benefit corresponds to that of the existing labour market subsidy and basic unemployment allowance and the basic amount of earnings-related unemployment allowance (EUR 37.21 per day in 2025). The general social security benefit is a benefit intended for individual people. This means that the income of your partner, for example, does not affect how much general social security benefit you can get.
The condition for receiving the benefit is that you are in need of financial support. In other words, the benefit is means-tested. As in the case of the current labour market subsidy, this means that your income other than earned income will affect the amount of the benefit when it exceeds the income limit. Such other income includes rental income and other capital income, but not savings or assets.
The general social security benefit will taper against increasing income from work linearly. In other words, the benefit will be adjusted to take the recipient’s earned income into account. This is also the case with unemployment benefits. Currently, each earned euro reduces the unemployment benefit to be paid by 50 cents.
The Social Insurance Institution of Finland (Kela) will be responsible for granting and paying the general social security benefit. Kela is preparing a single application model where clients can apply for unemployment benefits (in future, general social security benefit) and housing allowance using a single application. In the future, the plan is to expand the model to cover other benefits, too. Clients 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.
During a prolonged job search, jobseekers receiving the general social security benefit will participate in an activation period which aims to prevent prolonged unemployment and social exclusion. In particular, the aim is to shorten the periods of unemployment among young people. During the activation period, jobseekers will have meetings that are part of the service process and take place, as a rule, in person at an office of the employment authority. These meetings will focus on establishing the reasons for prolonged unemployment and referring jobseekers to the necessary services. Jobseekers under the age of 25 will participate in the activation period after receiving the general social security benefit for eight months and jobseekers aged 25 and over after receiving the benefit for 18 months. The changes to the activation period are part of the Act on the Organisation of Employment Services.
The general social security benefit will be paid to unemployed jobseekers to promote and improve the conditions for their access and return to the labour market. The aim of the benefit is to guarantee a basic level of income security during unemployment, simplify social security and promote incentives for work.
The President of the Republic is to approve the bill on Friday 16th of January 2026.
- Parliamentary response (in Finnish)
- General social security benefit
- Questions and answers about general social security benefit (Kela)
Preparation of general social security benefit advances in stages
In line with the Programme of Prime Minister Petteri Orpo's Government, the Government will implement a reform of basic income 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.
In the first stage, the benefit will simplify social security for the unemployed by replacing the existing labour market subsidy and basic unemployment allowance. In the next stage, the work will continue to harmonise and merge different benefits that guarantee a basic level of income security and to incorporate the current housing allowances gradually into the general social security benefit. The aim is to create a general social security benefit that will, in the future, include a basic allowance for living costs, an allowance for housing costs and a discretionary allowance as last-resort social security.
The general social security benefit is part of the social security reform. The Social Security Committee monitors the preparations for launching the general social security benefit.
Inquiries
Liisa Siika-aho, Director General, tel. +358 29 516 3085, [email protected]
Annu Jaakkola, Special Adviser to the Minister of Social Security, tel. +358 29 516 3330, [email protected]