2024 brings major revisions to Finland’s Kela social security benefits

By admin On Dec 21, 2023

Kela service point in Kamppi. LEHTIKUVA

In 2024, Finland will witness a substantial number of changes in the social security benefits provided by Kela, marking one of the most extensive revisions in recent years. These adjustments, approved by Parliament, will affect various sectors including pensions, disability allowances, unemployment benefits, and student financial aid.

Key Changes in Benefits

Index Adjustments: Pensions, disability allowances, social assistance, conscript’s allowances, and child maintenance allowances will see a 5.9% increase from 1 January 2024. However, no other benefits will be adjusted according to the index.
Reductions in Unemployment Benefits: Starting 2024, child increases in unemployment benefits will be reduced, and all such increases will cease from 1 April 2024. Additionally, a EUR 300 exempt amount on these benefits will expire, meaning any income earned during unemployment will reduce benefit amounts.
General Housing Allowance: The allowance amount will be decreased from 1 April 2024, impacting both ongoing and new applications. From 2025, this allowance will no longer cover owner-occupied homes.
Family Benefits: Child benefits will increase, particularly for families with four or more children, starting 1 January 2024. The single-parent supplement to the child benefit will also see a significant rise.
Student Financial Aid: The government guarantees for student loans will increase in August 2024. The provider supplement to student financial aid will see a hike at the start of the year and in April.
Medicine and Healthcare: The annual maximum limit on out-of-pocket medicine costs will rise to EUR 626.94. Kela reimbursements for private medical care will also increase.

Specific Benefit Changes

Family Benefits: There will be no indexation adjustments to maternity, paternity, parental allowance, and child care allowance rates. However, child benefits for larger families will increase.
Student Financial Aid: Loan guarantees will increase, but study grants will not be index adjusted. The provider supplement will increase by EUR 30.
Healthcare Fee: The due dates for higher education students’ healthcare fees will change to 15 March for the spring term and 15 November for the autumn term.
Unemployment Benefits: The eligibility criteria will undergo several changes. The waiting period will extend from five to seven days, and the work requirement for employees will increase from six months to 12 months.
General Housing Allowance: The basic deductible will increase from 42% to 50%, and the compensation percentage will be reduced from 80% to 70%.
Disability Benefits: Disability allowances will be index adjusted on 1 January 2024, with increased rates for various categories.

Additional Notes

Rehabilitation Services: New mental health and group rehabilitation services for various conditions will be introduced in 2024.
Earnings Threshold: The threshold for social security coverage for workers arriving in Finland will remain unchanged.

These changes reflect the Finnish government’s efforts to adapt its social security system to current economic conditions and societal needs. Detailed information on these adjustments is available in the press release and through Kela’s channels.

Source: www.helsinkitimes.fi