Social security reform
The social security reform aims for a clear and well-functioning system that:
- stays involved through changes in people’s lives and enables the reconciliation of work and social security
- provides a comprehensible, timely and sufficient level of benefits and services
- takes into account the transformation of work
- makes work more profitable and the amount of take-home pay more predictable
- supports employment, entrepreneurship, an active approach, self-sufficiency and lifelong learning as well as inclusion and an experience of meaningfulness
- reduces the need for long-term income support
- is in line with the rights and obligations of the individual and with public finances, and
- is responsible for fulfilling the constitutional obligation to take care of people through changes in society.
What happens in the course of the reform?
A parliamentary committee is in charge of the reform. The committee's working term is two government terms (2020-2027).
The task of the committee is to make proposals and initiatives on how to reform social security and carry out preliminary assessments and evaluations on the proposals. The committee outlines the vision and principles for the future of social security.
The committee addresses questions related to basic social security, earnings-based benefits and social assistance, and examines the financing and connections between these forms of support. Attention will also be given to ways to better integrate services with benefits.
The work will take into account the diversity of people’s life situations and changes in people’s lives, and the transition from one benefit to another. The committee will not discuss old-age pensions.
The social security reform is being carried out in parts. Different parts may be completed and enter into force according to different timetables.
During its second term, the Social Security Committee will look into special considerations that should be taken into account in developing social security. It will also monitor the preparations for using a universal credit model to reform social security. The committee will examine combinations of social security benefits, the level of social security, whether benefits should be individual or family specific, and how well benefits and services respond to people’s different life situations.
The Social Security Committee's interim report
The Social Security Committee’s interim report was published on Thursday 16 March 2023. The report includes 31 proposals for reforming social security under future governments and the policy guidelines for the Committee’s work during its second term.