Kela receives most of its financing from the state budget. Financing is also contributed by wage and salary earners, self-employed persons, employers, municipalities and the Åland Islands government. The social security schemes administered by Kela are financed on a pay-as-you-go basis, which means that the expenditure for a given year is financed with the revenues collected in that same year.
This page brings together key information about Kela’s financing.
Financing of the benefit funds
To finance benefit expenditures, Kela operates a National Pensions Fund, a Health Insurance Fund and a General Fund for Social Security, the last of which is used to finance the benefits that are not part of the pension or health insurance schemes.
The following chart illustrates Kela’s financing structure in 2022, consisting among others of payments by municipalities, health insurance contributions from employers, contributions by the insured to daily allowance and medical care expenditures, and unemployment insurance contributions.
The total expenditure of Kela’s benefit funds in 2022 came to EUR 16.9 billion. Benefit expenditure accounted for 96% and operating costs for 4% of that. In 2022, the state's share of the financing was 73%.
Twenty percent was derived from statutory contributions levied on insured persons and employers, 5% from payments by municipalities, and 2% from other income.