A client at the Helsinki employment services office. Photo: Markku Ulander / Lehtikuva
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People in Finland seeking basic social assistance will soon be required to register as unemployed, even if a doctor has stated they are unable to work. The proposed policy is part of a broader government reform aimed at tightening eligibility rules and reducing state expenditure.
Under current legislation, individuals aged 17 to 64 who are unable to work due to illness or institutional care are exempt from registering as jobseekers. The new proposal removes the exemption for those with a doctor’s certificate, while retaining it only for those in institutional care.
If the claimant fails to register as unemployed, their basic component of social assistance will be reduced by 50 percent. For a single person, this equates to a cut of more than €200 per month. The standard basic rate for a single adult is currently €593.
The rule change targets those who are not eligible for sickness allowance or disability pension despite having health problems. This group often includes long-term unemployed individuals with mental health or substance abuse issues. In 2020, between 2,000 and 7,500 people fell into this category depending on the method of estimation.
Although claimants must register as unemployed, they will not be required to actively seek work if employment services assess them as having reduced capacity. In such cases, a job application obligation of zero may be assigned.
Authorities say the measure is not solely about cost reduction, but also about reaching individuals who have fallen outside the existing welfare structure. The aim is to involve them in assessment services or employment-supporting activities such as work trials or rehabilitation programmes.
The reform is part of a complete overhaul of Finland’s last-resort social assistance scheme. It is expected to take effect next year, pending approval.
In addition to the registration requirement, the government also plans a separate three percent reduction in the basic component of social assistance. For a single adult, this means a decrease of €17.80 per month.
Together, the changes are expected to save the state approximately €74 million annually.
HT
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Source: www.helsinkitimes.fi
