A customer heading to the Helsinki Employment Service Centre at the Pasila TE Office. LEHTIKUVA
- Previous Article Poliovirus detected in Tampere wastewater, but no cases reported
- Next Article 612 march sparks clashes, arrests, and Nazi salute accusations
The Finnish Parliament has approved significant changes to labour market subsidies, commuting and relocation allowances, and unemployment benefits during employment-promoting services. These cuts will take effect on 1 January 2025 and are expected to impact thousands of unemployed individuals across the country.
The minimum partial labour market subsidy, currently set at 50% of the full amount, will be reduced to 35%.
This subsidy applies to unemployed individuals living with their parents, who receive the full benefit only if their parents’ combined monthly income does not exceed €1,781. This reduction is expected to affect approximately 10,000 people annually, most of whom are under 30 years old.
In a related adjustment, compensation received by parents for informal caregiving or family caregiving will no longer reduce the labour market subsidy of unemployed individuals living at home. This change applies only when the caregiving role is not-for-profit and is expected to benefit some recipients whose parents are informal caregivers or provide child welfare services.
The increased rate for commuting and relocation allowance will be discontinued. Currently, the benefit includes a €5.29 daily increase for commutes over 200 km. This allowance, designed to help cover the costs of long commutes or relocation for work or training, was granted to just 656 people in 2023. The increased rate will still apply to work or training that begins before the end of 2024.
Unemployment benefits will no longer include the supplementary increase during participation in employment-promoting services starting in 2025. Currently, the increased benefit adds €5.29 per day, amounting to an average of €111 per month. This change will affect those engaging in services like labour market training and rehabilitative work activity. In 2023, about 60,000 people received unemployment benefits at an increased rate, with 50,000 receiving the labour market subsidy and 10,000 receiving basic unemployment allowance.
The supplementary increase will remain available for services that begin before the end of 2024, but only for a maximum of 200 days.
These benefit reductions may lead to increased payments of general housing allowance and basic social assistance. Antti Ristimäki, Legal Counsel at Kela, noted that lower unemployment benefits could reduce incomes for some unemployed individuals, making them eligible for additional support through these programs.
The changes will automatically take effect on 1 January 2025. Recipients of benefits from Kela do not need to take any action in response to these adjustments. The measures aim to reduce government spending but are expected to place additional financial strain on unemployed individuals, particularly young people and long-term unemployed participants in employment-promoting services.
HT
- Previous Article Poliovirus detected in Tampere wastewater, but no cases reported
- Next Article 612 march sparks clashes, arrests, and Nazi salute accusations
Source: www.helsinkitimes.fi
