Finnish social security system

The Finnish social security system includes benefits and support that protect people’s livelihoods, as well as the provision of health and social services and employment services.

Social security provides income security, in other words, financial support during life events when people cannot sufficiently support themselves through work or other means. These events may include the birth of a child, unemployment, illness, incapacity for work and old age.

Some benefits are earnings-related and based on work, while others are based on residence in Finland. A large part of Finnish social security is funded through statutory insurance. Employees and employers pay specific insurance contributions to cover these benefits. This is known as social insurance. In addition, social security includes reimbursements of certain costs, funded through taxes, and social assistance, which provides last-resort financial assistance.

Providing and organising social security

The figure below shows who is responsible for providing and organising benefits and services. Many parties are involved in providing social security. They include the Social Insurance Institution of Finland (Kela), unemployment funds, earnings-related pension providers, municipalities and wellbeing services counties. The figure divides social security into five areas: basic social security, minimum protection, earnings-related benefits, reimbursement of costs, and services.

The figure does not show funding or insurance arrangements.

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Basic social security
Basic social security ensures that people have the essential means to live – what the Constitution calls ‘indispensable subsistence’. These benefits are paid in cases of unemployment, illness, incapacity for work, old age, the birth of a child or the loss of the person who has custody of a child.

Earnings-related social security
Earnings-related social security means benefits based on a person’s previous income. These benefits include earnings-related unemployment allowance, earnings-related allowances for parents during family leave and earnings-related sickness allowance.

Minimum protection
The Constitution guarantees the subjective right to indispensable subsistence and care for those who cannot secure a dignified life by other means. In Finland, social assistance provides this minimum protection.

Reimbursement of costs
Social security also includes support that helps cover certain costs related to life events. These may include costs due to disability or illness, housing costs or expenses related to raising a child.

Services
Key services in the social security system include health services, social services and employment services.

Health services promote and maintain people’s health, wellbeing, ability to work and functioning. Wellbeing services counties organise both primary and specialised healthcare. In addition, occupational healthcare, student
healthcare and private healthcare provide health services.

Social services support people’s wellbeing by helping them with social problems and by working to prevent these problems from happening in the first place. These services are organised by wellbeing services counties, and businesses and organisations also provide them.