What is the first stage of introducing the general social security benefit?
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 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.
The condition for granting general social security benefits to unemployed people would be that they are in need of financial support. In other words, the benefit would be granted on the basis of means testing (just like the current labour market subsidy). As in the case of the current labour market subsidy, means testing would mean that the person’s income other than earned income would affect the amount of the general social security benefit for the part exceeding the income limit. Such income would include capital income or rental income (of which the costs incurred in, for example, acquiring and keeping this income , such as charges for common expenses and electricity charges in respect of rental income, would be deducted). Thus, the person’s own assets would not affect the amount of the general social security benefit, but the return on assets could.