The government proposes a new social security benefit called general social security benefit. This new benefit would replace the basic unemployment allowance and the labour market subsidy currently paid by Kela (the Social Insurance Institution of Finland). The change would affect members of unemployment funds if a person has not met the employment condition during their membership period, or if their maximum payment period for earnings-related allowance has ended. The reform would not have direct effects on the amount or eligibility conditions of the earnings-related allowance. The change is intended to enter into force on 1 May 2026.

What is general benefit?

General social security benefit would be a new social security benefit that combines the current basic unemployment benefits — the basic unemployment allowance and the labour market subsidy— into a single scheme. The level of the general social security benefit would be the same as the current labour market subsidy and basic unemployment allowance (EUR 37.21 per day and about EUR 800 per month in 2025).

Who would receive general benefit?

General social security benefit would be paid to unemployed jobseekers who are not entitled to earnings-related unemployment allowance, or whose maximum period of receiving the allowance has ended.

Recipients of general social security benefit would mainly be subject to the same general labour policy conditions, services, and sanctions (i.e. waiting periods or disqualifications) under the Unemployment Security Act as recipients of the earnings-related allowance.

How would general benefit differ from the current benefits?

The main difference between general social security benefit and the current basic unemployment allowance would be that general social security benefit is means-tested. This means that, in addition to earned income, other income such as rental income and capital income would also affect the amount of the benefit. As earned income increases, the general benefit would decrease gradually.

In addition, general social security benefit could include a 21-week waiting period for those who have not completed any post-primary education leading to a qualification that provides vocational skills. Means-testing and the 21-week waiting period are already applied to the labour market subsity. What would be new is that these stricter conditions would also apply to people who have fulfilled the employment condition and who currently receive the basic unemployment allowance.

Why is it worth joining an unemployment fund?

The maximum amount of the labour market subsity and the basic unemployment allowance paid by Kela is about EUR 800 per month (gross). The amount of the earnings-related allowance, on the other hand, is based on previous income and is usually clearly higher than the benefits paid by Kela.

In the future, membership in an unemployment fund will be even more important, since general social security benefit would be means-tested even for unemployed persons who have fulfilled the employment condition — unlike the current basic unemployment allowance. When you fulfil the employment condition while being a member of an unemployment fund, you can apply for earnings-related allowance, which is not means-tested.

What happens next?

If Parliament approves the proposal, the legislative amendment introducing general social security benefit will enter into force on 1 May 2026. In the future, the aim is to expand general social security benefit so that it would also replace other benefits such as the housing allowance and social assistance.

Read more about general social security benefit on Kela’s website.