Kela service point in Kamppi, Helsinki. LEHTIKUVA
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In 2025, a series of significant changes to Kela benefits will take effect, impacting various groups, including students, unemployed individuals, and pensioners. These changes, approved by the Finnish Parliament, are aimed at tightening eligibility criteria, adjusting benefit amounts, and streamlining social security processes.
Starting 1 August 2025, students will be moved from the general housing allowance system to the student housing supplement scheme.
Eligibility for the housing supplement will be restricted to those receiving student financial aid and living in rental or right-of-occupancy housing. Students with children or stepchildren will remain in the general housing allowance system. Additionally, only students entitled to free upper secondary education will qualify for school transport subsidies.
The healthcare fee for higher education students will be €71.20 per academic year, paid in two instalments, and will have due dates of 15 March and 15 November. Study grants will remain unchanged due to the index freeze, with an 18-year-old student living independently continuing to receive €279.38 per month.
For young people, the minimum age for rehabilitation subsidy, disability pension, rehabilitation allowances, and sickness allowances will rise from 16 to 18 years, effective January 2025. Seventeen-year-olds who have stopped their compulsory education will lose eligibility for unemployment benefits. The maximum age for the child disability allowance will also increase to 18 in 2027.
Vocational rehabilitation for young people will now focus on those not in education or employment, and personal income exceeding €800 per month will reduce rehabilitation allowance amounts. Participation in Nuotti coaching will no longer qualify for rehabilitation allowances. As of August 2025, students will not receive financial aid and rehabilitation allowance simultaneously.
Unemployment benefits are also facing adjustments. From January 2025, partial labour market subsidy will drop to 35% of the full amount. Compensation received by parents for informal caregiving will no longer reduce their child’s labour market subsidy. The increased rate for commuting and relocation allowances and for unemployment benefits during employment-promoting services will be discontinued. Basic unemployment allowances and labour market subsidies will remain at €37.21 per day due to the index freeze.
Changes to the general housing allowance will take effect on 1 January 2025. Assets will now impact the benefit amount, and owner-occupied homes will no longer qualify. Six cities—Kajaani, Kouvola, Lappeenranta, Mikkeli, Pori, and Vaasa—will be moved to a lower support category, reducing allowances for residents.
For pensioners, the national pension will increase by 1%, raising the full monthly amount to €783.41 for individuals living alone. The full guarantee pension will be €986.30 per month. Disability allowances will also rise slightly, with the basic rate for those under 16 set at €109.97 per month. Starting 1 February 2025, national pensions will no longer be paid to recipients living outside Finland in countries governed by EU social security regulations.
Sickness and rehabilitation allowances will see their calculation formula change in January 2025. The annual income threshold for a higher compensation rate will drop to €28,241, and the compensation rate above this limit will decrease from 20% to 15%.
Reimbursements for medicine expenses will also be adjusted. The initial deductible for medicine reimbursements will rise from €50 to €70. The maximum annual out-of-pocket medicine costs will increase to €633.17. Additionally, all biological medicines, except insulin, will be eligible for generic substitution.
The government has proposed reinstating Kela reimbursements for fertility treatments and physiotherapy. These changes, if approved, would take effect in April 2025.
A trial run for healthcare freedom of choice for those aged 65 and older is planned for September 2025. This will allow seniors to visit private general practitioners for the same fee as public healthcare. Another trial introducing designated personal doctors is also in development, potentially starting in autumn 2025.
HT
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Source: www.helsinkitimes.fi
