12/31/12
Changes to Kela benefits in 2013
Changes to Kela benefits in 2013Next year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Changes in reimbursements for pharmaceutical expensesNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Changes in reimbursements for the cost of private medical provision and travel expensesNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Copayments for travel expenses increasedNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Increase in the minimum amounts of sickness and rehabilitation allowancesNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Minor changes in health insurance contribution ratesNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Occupational health care: Allowable maximum costs confirmedNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Paternity leaves extendedNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Family benefits increasedNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Changes in unemployment securityNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Amount of the general housing allowance increased slightlyNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Extension of general housing allowance review periodNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Rates of disability allowances increasedNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Pension benefits provided by Kela increased by 3.5%Next year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Additional information for customersNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.Online sourcesNext year brings significant changes in many benefits paid by Kela, especially in the areas of health insurance and unemployment security. Some of the changes still await confirmation by Parliament.
Kela benefits tied to the National Pensions Index will increase by different amounts next year. The benefits will go up by a fixed amount of 2.8% following an adjustment of the index. An additional increase of 0.7% will made to certain benefits to compensate for the higher value-added tax rate. Child benefits will not be increased in line with the index in 2013.
Changes in reimbursements for pharmaceutical expenses
The National Health Insurance scheme provides reimbursements for certain medicines. The system distinguishes between basic and special rates of reimbursement. At the start of February 2013, the basic reimbursement rate will be reduced from 42% to 35% and the lower special reimbursement rate from 72% to 65%. The higher special reimbursement rate will remain at 100%.
The annual deductible (i.e., the maximum out-of-pocket contribution that clients are expected to make towards their pharmaceutical expenses) will be lowered to €670 at the turn of the year. After maxing out the deductible, clients pay €1.50 for each purchase of a compensable medicine.
Changes in reimbursements for the cost of private medical provision and travel expenses
A new reimbursement model will be introduced for private medical care at the beginning of 2013. Percentage-based reimbursements will be replaced by a system based on fixed amounts that Kela establishes for doctors' and dentists' fees and for examination and treatment charges. The reimbursement granted to the patient is based on the fixed amount.
With the exception of laboratory and radiology tests, the level of reimbursement will stay the same. The rates of reimbursement will be posted at www.kela.fi/taksat on 1 January 2013.
The new reimbursement model does away with the standard €13.46 copayment for examination and treatment procedures.
Copayments for travel expenses increased
The per-trip copayment for travel expenses covered by Kela will increase from €9.25 to €14.25 at the start of 2013. The annual cap on out-of-pocket travel expenses will go up from €157.25 to €242.25 at the same time.
Increase in the minimum amounts of sickness and rehabilitation allowances
The minimum amounts of the sickness allowance and the rehabilitation allowance will be increased by 3.5% from €22.96 to €23.77 per working day. Kela will make the adjustments automatically on 1 January 2013. No application is needed.
Sickness allowances, partial sickness allowances and rehabilitation allowances going into payment in 2013 and based on earnings will be adjusted by a wage coefficient, which will increase by 2.78%. An amount equal to 3.89% is deducted from earnings used as the basis for calculating the allowances, representing a deduction for social insurance contributions. No adjustment is made in earnings-based allowances that have been paid since before 1 January 2013.
Minor changes in health insurance contribution rates
The contribution levied from the insured towards medical care will next year be 1.3% of earned income subject to municipal tax. The rate applicable to taxable pensions and other social security benefits is 1.47%. Both rates will rise by 0.08 percentage points over 2012.
The National Health Insurance contribution rate for employers will be 2.04% and the contribution levied from entrepreneurs towards the daily allowances will be 0.74% of wages or earned income. Both rates will decrease by 0.08 percentage points from 2012.
Occupational health care: Allowable maximum costs confirmed
Kela compensates employers and self-employed persons for their occupational health costs on the basis of allowable maximum costs, which are confirmed annually. The maximum cost per employee for compensations paid for the 2012 accounting period will increase by about 2.1% over 2011. The maximum cost per self-employed person will increase by the same amount.
Paternity leaves extended
Paternity leaves will be extended to 54 working days or a total of about 9 weeks. Like before, fathers can take up to 18 working days off while the mother receives maternity or parental allowance. The rest of the father's paternity allowance entitlement can be used after the maternity or parental allowance period.
With this change, the so-called daddy month is discontinued. The paternity leave is no longer affected by whether the father decides to use his parental allowance entitlement. Days for which fathers are paid paternity allowance also no longer reduce the number of parental allowance days available. Finally, the paternity leave can be taken later than has been possible until now. It must be taken before the child is 2 years old or, in the case of adoption, before 2 years have passed since the date of placement.
The new paternity leave rules will go into effect on 1 January 2013, and they are relevant to parents who began to receive special maternity allowance, maternity allowance or (applicable to adoptive parents only) parental allowance after 1 January 2013. If payment of the allowance began in 2012, the paternity allowance will be paid in accordance with the earlier legislation even if the child is born in 2013.
Family benefits increased
The minimum amounts of maternity, paternity and parental allowances will be increased by 3.5% from €22.96 to €23.77 per day. Kela will make the adjustments automatically on 1 January 2013. No application is needed.
Maternity, paternity and parental allowances going into payment in 2013 and based on earnings will be adjusted by a wage coefficient, which will raise earnings-related allowances by 3%. Earnings-based maternity, paternity or parental allowances that have been paid since before 1 January 2012 are, however, not adjusted by the 2013 wage coefficient.
Child benefits will not be increased in 2013–2015. They will next be adjusted to reflect index changes in 2016.
The child home care and private day care allowances will be raised by 2.8%. Kela will do this automatically (no application is necessary) on 1 January 2013.
The basic child home care allowance for children under the age of 3 will be increased from €327.46 to 336.67 per month. Supplemental amounts for other children in the family who are under age 3 or under school age are provided at rates of €100.79 and €64.77, respectively. An additional allowance of up to €180.17 may also be available subject to family income.
The basic private day care allowance will be increased to €171.40 per child at the turn of the year.
The partial care allowance will be raised to €96.41 per month.
Child support payments and child maintenance allowances are linked to the Cost-of-Living Index, which will rise by 2.63% on 1 January 2013. Child maintenance allowances will be paid at a rate of €151.85 per child and per month from the turn of the year. All allowances already in payment will be raised automatically. Persons liable for child support must increase their child support payments starting 1 January 2013. The income limits for the waiver of child support debt will also be adjusted by the index.
Changes in unemployment security
The basic benefits for the unemployed will be increased by 3.5%. The full amount of basic unemployment allowance and labour market subsidy will be €32.46 per day or about €698 per month.However, this is subject to tax at 20%, so the net benefit for the unemployed comes to about €558.
The income of the recipient's spouse will no longer reduce the amount of labour market subsidy or integration assistance. Unemployed job seekers whose claim for labour market subsidy or integration assistance was turned down because of their spouse's income or who did not claim at all must submit a new claim.
Recipients of labour market subsidy whose benefit is reduced by their spouse's income will receive an increased benefit automatically and do not have to submit a new claim.
The periodisation of holiday compensations will end at the turn of the year. Unemployment benefits will be paid right away at the onset of unemployment, with the holiday compensations included in the final pay no longer affecting the timing of the first benefit.
A re-employment bonus experiment will be launched to support the employment of the long-term unemployed. As set out in the Government's proposal, the long-term unemployed will be paid labour market subsidy for the first month of employment if they take on a job that lasts at least 3 months.
The bonus can also be provided at the beginning of a part-time job. Scheduled to run for three years, the experiment will be implemented in a number of participating cities. Applications for the re-employment bonus are received by the Employment and Economic Development Office, which also examines the applicant's eligibility.
Amount of the general housing allowance increased slightly
The amount of the general housing allowance will be increased at the turn of the year in line with the rise in rental prices. At the same time, the income limits that recipients must meet will be raised to correspond to the increase in basic unemployment benefits.
The combined monthly income of the persons making up a household may not exceed the basic deductible defined annually in a Council of State decree. The income limits will be raised by €25 at the turn of the year. The income limit required for the full rate of housing allowance will go up from €675 to €700 per month for recipients in a single-person household. In addition, the deductibles for housing costs will be adjusted to inflation.
The maximum allowable housing costs in the housing allowance scheme will be increased by €0.40 per square metre and per month. This corresponds to the rise in rents. The average amount of the general allowance will go up by about €5.50 per month.
Following the increase in income limits and maximum allowable housing costs, the average amount of the housing allowance is estimated to increase from €280 to €288 next year. Kela will adjust the amounts automatically the next time the housing allowance is reviewed.
Extension of general housing allowance review period
When long-term unemployed persons find work and earn a higher income, any housing allowance they may receive has until now been reviewed three months after the start of the job. Starting with the beginning of next year, the review will not be carried until six months after they start work.
For example, if a client who has received labour market subsidy or basic unemployment allowance for over a year starts work on 15 May, the review can be postponed until 1 December.
Rates of disability allowances increased
The veterans' supplement will be increased by €50 to €104.42 per month at the start of 2013.
The dietary grant for persons with coeliac disease will be raised from €21 to €23.60 per month.
There will be an increase of 3.5% in the rates of the disability allowances for persons under age 16 and aged 16 or over as well as in the rate of the care allowance for pensioners.
The new rates are as follows: basic rate, €92.31 per month; increased rate, €215.40 per month; and highest rate, €417.68 per month.
The new rates of the care allowance for pensioners are: basic rate, €61.83 per month; increased rate, €153.91 per month; and highest rate, €325.46 per month.
Pension benefits provided by Kela increased by 3.5%
The amounts of the national pension, guarantee pension and survivors' pension will be increased by 3.5%. These index adjustments will be made automatically without separate application.
The full rate of the guarantee pension will be raised by €25.09 to €738.82 per month. This will be the gross minimum pension that persons living in Finland will receive in 2013. The guarantee pension is reducible by any other pensions the recipient may receive, which means that no guarantee pension may be payable if the total amount of other pensions offers nearly the same level of minimum retirement security.
The amount of the full national pension for persons living in a single-person household will be raised by €21.39 to €630.02 per month. The amount of the full national pension for persons living together with another person will go up by €18.98 to €558.83 per month.
The initial pension for spouses will be paid at a rate of €324.93 per month next year. The full amount of the continuing pension for spouses, which is paid to surviving spouses with dependent children, is the same as that of the national pension. The basic amount of the orphan's pension will be increased to €59.79 per month.
The income limits for the housing allowance for pensioners will be increased by 2.8% in line with the National Pensions Index, and the maximum allowable housing costs by 3.8% to reflect the rise in general housing costs.
The fixed charges for water, heating and the upkeep of a single-family home will also be increased to correspond with the rise in average costs. The fixed heating charge will be raised by €0.04 per square metre in all municipality categories. The fixed water charge will go up by €2.63 to €27.15 per month and per person. The fixed charge for the upkeep of a single-family home will be increased in line with the National Pensions Index to €40.59 per month. These increases will be applied in forthcoming eligibility reviews of housing allowance recipients.
Additional information for customers
Kelan etuudet numeroina 2013 (Kela Benefits in Figures 2013) (pdf)
Online sources
The revised amounts of the benefits will be posted on Kela's website on 1 January 2013.