Benefits tied to the National Pensions Index to be increased by 4.2%
Kela has confirmed the value of the National Pensions Index for next year. On 1 January 2023, Kela benefits will go up by 4.2 percent in line with the index.
Most benefits provided by Kela are tied to the National Pensions Index. 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. As prices change, the index linkage helps to maintain the purchasing power of benefits.
The index is normally adjusted once a year, but this year an additional adjustment was made for the period 1 August 2022 to 31 December 2022.
Kela is required under the law to confirm the value of the National Pensions Index for the next calendar year by the end of the previous October. The index value for 2023 has now been confirmed at 1,805 (from 1,733 previously). This represents an increase of 4.2%.
The index adjustment will increase Kela’s total expenditure on benefits by an estimated 300 million euros in 2023.
Examples of increases to benefits
Benefits tied to the National Pensions Index include the national pension, guarantee pension, labour market subsidy and basic daily allowance, and the basic component of social assistance.
Following the index adjustment, full national pensions for recipients living alone will go up from 703.45 euros to 732.67 euros, while the full guarantee pension will increase from 885.63 euros to 922.42 euros and the basic amount of the care allowance for pensioners will be raised from 75.58 euros to 78.72 euros.
Labour market subsidies and basic unemployment allowances paid every four weeks to unemployed jobseekers will be paid at a rate of 37.21 euros per day (up from 35.72 euros in 2022).
Additionally, as an example, the care allowance component of the child home care allowance for one child under 3 will be increased from 362.61 euros to 377.68 euros, while the minimum amount of the sickness allowance will go up from 30.71 euros to 31.99 euros.
Also study grants will be increased in line with the National Pensions Index, but the increase will not take effect until the start of the new academic year on 1 August 2023. For students aged 18 or over who are living independently, the study grant will go up from 268.23 euros to 279.38 euros per month.
Additional increases to certain benefits proposed as part of the Government’s budget negotiations
In addition to the index adjustments, a number of additional increases to certain benefits are proposed to go into effect at the turn of the year. The relevant Government proposals will be reviewed by Parliament this autumn.
As part of its budget negotiations in September, the Government proposed temporary increases in the single-parent supplement to the child benefit, the child increase to unemployment benefits, the provider supplement to the study grant and the basic component of social assistance payable to persons under 18 years of age. Further, the care supplement paid as part of the private day care allowance was proposed to be raised permanently.
The Government is proposing to extend the freeze on the annual maximum limit on out-of-pocket medicine costs for the duration of 2023. This would mean keeping it at the current year’s level of 592.16 euros per year.
Additional information
For the euro amounts of benefits, see:
Benefit rates and income limits starting 1 January 2023