Government proposes the adoption of a new general social security benefit as of 1 May 2026
The Government has proposed the adoption of a new general social security benefit with the goal of simplifying the social security system. In the first phase, the plan is for the general social security benefit to replace the existing labour market subsidy and basic unemployment allowance paid by Kela. The proposal foresees a further stepwise extension of the general social security benefit to cover more benefits. Parliament is expected to pass the proposal into law in late 2025. The legislation concerning the general social security benefit is expected to come into force on 1 May 2026.
The general social security benefit will be paid to unemployed jobseekers who do not qualify for or have temporarily used up their earnings-related unemployment allowance. If the proposal passes into law, the basic amount of the general social security benefit will be EUR 37.21 per day (about EUR 800 per month). It corresponds to the existing labour market subsidy and basic unemployment allowance in 2025.
The next steps after the first phase of the implementation of the general social security benefit have yet to be decided. The intention is for the scope of the general social security benefit to be expanded in stages to cover other benefits as well.
Similar means-testing rules as with labour market subsidy
If the proposal passes into law, the general social security benefit will be paid to the unemployed and it will be means-tested. This means that you will have to be in need of financial assistance to qualify for the general social security benefit.
The means test that will be applied to the new benefit is similar to the one currently used for labour market subsidy. The benefit being means-tested means that all other income than your salary or wages, such as capital income, will affect how much general social security benefit you can get.
If you are paid more than EUR 311 per month in capital income or other income that is not salary or wages, half of this amount will be deducted from your general social security benefit.
Your earned income, such as wages or salary, is not included in the means test. The income of your spouse or roommate will also not be taken into consideration.
General social security benefit to be adjusted based on earned income
If you are unemployed but you earn a salary or wages while also being paid the general social security benefit, the amount of benefit you can get will be adjusted to take your salary or wages into consideration similarly to how they currently affect unemployment benefits.
This means that the amount of general social security benefit you can get will gradually decrease as your income grows.
Half of the gross (before taxes) salary or wages you earn from part-time work will be deducted from your general social security benefit. This means that, for example, if you earn EUR 1,000 per month, EUR 500 will be deducted from your general social security benefit.
Parental income can affect the general social security benefit
The amount of general social security benefit you can get is not affected by your savings or assets, such as a car, house or apartment. For example, how much money you have in your bank account will not affect how much general social security benefit you can get.
Another factor that will not affect your general social security benefit is the income of your spouse or roommate.
If you live with your parents while Kela pays you the general social security benefit, their income can affect how much you can get similarly to how parental income currently affects labour market subsidy.
However, your general social security benefit will not be affected if your parents’ combined income does not exceed EUR 2,500 per month. Each child under 18 who lives with your parents and is under their care will increase this income limit by EUR 106 per month.
If your parents’ combined monthly income exceeds EUR 2,500, half of the amount that exceeds the threshold of EUR 2,500 will be deducted from the general social security benefit Kela pays to you. However, you will always get at least 35% of the general social security benefit.
General social security benefit as part of a social security reform
The general social security benefit is a new form of financial assistance that the Government plans to introduce to the Finnish social security system. It is meant to combine several existing benefits into one. The goal for introducing the general social security benefit is to simplify and clarify the Finnish social security system and to provide better incentives for the unemployed to seek and retain employment.
The Programme of Prime Minister Petteri Orpo’s Government lists the introduction of a general social security benefit as part of its planned reform of the Finnish social security system. The reform aims to create a general social security benefit that would include a basic allowance for living costs, an allowance for housing costs and a discretionary allowance as last-resort social security.
The legislation concerning the general social security benefit is expected to come into force on 1 May 2026. Kela publishes updates on the general social security benefit on its Unemployment page and provides instructions on how to apply for it in the OmaKela e-service.
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