10/14/11

Benefits linked to the national pensions index to be increased by 3.8%

The rates of national pensions, guarantee pensions, survivors' pensions, front-veterans' supplements, disability allowances, child benefits, child care subsidies and minimum-rate daily allowances will be raised in line with the national pensions index with effect from 1 January 2012. A general increase will additionally be applied to basic unemployment allowances and labour market subsidies.

The National Pensions Index is linked to the Cost-of-Living Index, which is compiled by Statistics Finland and tracks the prices of key commodities. The index is updated annually by Kela on the basis of average prices in the third quarter. The index figure for 2011 is 1565 (up from 1508 in 2011). This represents an increase of 3.8 percent.

In accordance with the index increase, the rates of national pensions payable to single pensioners with no other pension income will increase by €22.17 (from €586.46 to €608.63 per month). Pensions payable to married or cohabiting pensioners with no other pension income will go up by €19.66 (from €520.19 to €539.85 per month). The full rate of the guarantee pension will be raised by €25.99 to €713.73 per month.

The sickness allowance, the special care allowance and the maternity, paternity and parental allowances payable at the minimum rate will increase to €22.96 per day. The child benefit paid for the first child will rise from €100.40 to €104.19 per month. The basic child home care allowance will go up from €315.54 to €327.46 per month.

After the general and index-linked increases, the full basic unemployment allowance and labour market subsidy will be payable at a rate of €31.36 per day.

The adjustment of benefits to index changes will increase Kela's total expenditure on benefits by about €222 million in 2012.

Additional information:
Kela, Actuarial and Statistical Department
Pertti Pykälä, tel. 020 63 41305
Henri Riuttala, tel. 020 63 41377
firstname.surname (at) kela.fi