Stricter sanctions for unemployment benefits recipients – sanctions may lead to reduced social assistance

Parliament has passed legislation introducing stricter rules concerning mandatory waiting periods (karenssi) for unemployment benefits and a reform of social assistance. The legislative amendments will affect the unemployment benefits paid by Kela and unemployment funds and the social assistance paid by Kela.

Mandatory waiting periods (karenssi) are periods of time during which an unemployed person is not paid any unemployment benefits. Employment services may impose a mandatory waiting period or obligation to work on an unemployed person who has failed to fulfil their obligation to seek work or participate in employment services as agreed. Such an infraction can be, for example, if the unemployed person does not participate in a scheduled meeting with employment services.

Employment services do not and in the future will not impose a mandatory waiting period or an obligation to work on an unemployed person who can give an acceptable reason for their behaviour.

Mandatory waiting periods can be imposed after just one infraction

Going forward, unemployed persons can lose their unemployment benefits after just one failure to apply for work or participate in employment services.

After a new legislative amendment enters into force in March, employment services will start imposing a 7-day mandatory waiting period on unemployed persons for a first infraction such as not applying for work or not participating in employment services.

A second infraction will result in a 6-week obligation to work. An obligation to work means that you can get unemployment benefits only after you have fulfilled your obligation to work by either working or participating in employment-promoting services for at least 6 weeks.

The number of infractions will continue to be assessed on an annual basis, starting from the first infraction. The changes to mandatory waiting periods will enter into force on 1 March 2026.

Currently, employment services will just send the unemployed person a reminder for the first infraction. A 7-day mandatory waiting period is imposed for the second infraction, a 14-day mandatory waiting period for the third infraction and a 12-week obligation to work for the fourth infraction.

Kela may reduce social assistance due to a mandatory waiting period

If an unemployed person loses their unemployment benefits because a mandatory waiting period or obligation to work is imposed on them, they can apply for benefits such as general housing allowance or social assistance.

However, following the latest legislative amendments, Kela may reduce the basic amount of social assistance for unemployed persons who are subject to a mandatory waiting period or obligation to work.

For example, a 7-day mandatory waiting period could lead to a 20% reduction of the basic amount of social assistance for one month. If the grounds for reducing the basic amount continue for more than one month, the basic amount can be reduced by 40% for the following months.

The amendment concerning reductions of the basic amount of social assistance will enter into force on 1 February 2026.

Kela will give the customer an opportunity to express their view before reducing the basic amount

The basic amount of social assistance is not a sum of money paid to the customer, it is a theoretical sum that covers the amount of money that a person needs for the essential costs of everyday life, such as food, telephone costs, transportation and clothes. In addition to these basic expenses, social assistance can be granted towards costs such as rent and healthcare costs.

Read more: For what types of expenses can you get social assistance? (kela.fi)

At present, the basic amount of social assistance for a person living alone is EUR 587.34 per month. If the basic amount is reduced by 40%, the basic amount for a person living alone is then EUR 352.40 per month (EUR 11.70 per day).

“In a situation where Kela considers reducing someone’s basic amount, Kela will first contact them before making a decision. The customer will be given a chance to explain why they think the basic amount should not be reduced or why doing so would be unreasonable. Kela will not reduce the basic amount of someone’s social assistance if it would put their basic subsistence at risk or otherwise be unreasonable,” says Tomi Ståhl, Head of the Centre of Expertise for Social Assistance at Kela.

Many changes to benefits and services for the unemployed

There are major changes under way concerning the benefits and services for the unemployed. As of the start of 2025, the responsibility for providing employment services for the unemployed was transferred from the government to the municipalities. The year 2026 will see changes to mandatory waiting periods, a reform of the service process of jobseekers, a reform of rehabilitative work activity, a total reform of the Act on Social Assistance, and the introduction of a new general social security benefit for unemployed persons.

“These changes increase the amount of work that needs to be done at Kela, in the employment services and in the wellbeing services counties. Limited resources and growing workloads pose challenges for a smooth implementation of these changes. Good cooperation between different authorities is required for these reforms to succeed,” says Tomi Ståhl.

The changes to the mandatory waiting periods and to social assistance are part of a larger set of measures that Prime Minister Petteri Orpo’s Government has taken to reform the social security system to include more incentives and obligations. The measures emphasizes the responsibility of the unemployed to actively look for work and participate in employment-promoting services.

The changes to the mandatory waiting periods will also apply to unemployed persons who are granted general social security benefit on the basis of unemployment.