Benefits tied to the National Pensions Index will be increased by 3.5% in August

Parliament has approved an additional index adjustment to the National Pensions Index to be applied as of 1 August 2022. The 3.5% increase applies to benefits such as the national pension, disability benefits, labour market subsidy and social assistance.

Many 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.

The National Pensions Index is normally adjusted once a year, at the beginning of January, but this year an additional adjustment will be made to the index on 1 August 2022. The purpose of the additional index adjustment is to safeguard the purchasing power of benefit recipients as inflation increases.

The current National Pensions Index value or point figure (1674) has been calculated on the basis of the third quarter of 2021. For the additional index adjustment, the value will be calculated on the basis of the Cost-of-Living Index for the first quarter of 2022, which means that the National Pensions Index value will increase by 3.5%. This brings the National Pensions Index value to 1733 for 1 August – 31 December 2022.

Kela’s total expenditure on benefits will increase by about EUR 90 million in 2022 and EUR 10 million in 2023 as a consequence of the additional index adjustment.

Guarantee pension to be increased by EUR 30

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.

As of August, the amount of the full national pension for persons living alone will increase from EUR 679.50 to EUR 703.45 per month, while the guarantee pension increases from EUR 855.48 to 885.63 per month.

Disability benefits will also be increased as of the beginning of August. For example, the basic amount of care allowance for pensioners will increase from EUR 73.00 to EUR 75.58 per month.

As of August, labour market subsidy or basic daily allowance for unemployed jobseekers will be EUR 35.72 a day (at present EUR 34.50 a day).

The basic amount of social assistance will increase by EUR 18.15 per month for persons living alone and by EUR 20.70 per month for single parents.

The care allowance of the child home care allowance for one child under 3 years of age will increase from EUR 350.27 to EUR 362.21 per month.

The minimum rate of sickness allowance will increase by about one euro, from EUR 29.67 to EUR 30.71 per day.

Higher increase in the study grant

The study grant is adjusted against the National Pensions Index annually in August, at the start of each new academic year. This year, the study grant will be increased by 5.7% as of 1 August, because the increase will comprise both the normal adjustment and the additional index adjustment.

At present, the study grant for students aged 18 or over who are living independently is EUR 253.69 per month. As of the beginning of August, it will be EUR 268.23 per month.

No change to annual limit on out-of-pocket medicine costs

As an exception, the additional index adjustment will not apply to the annual limit on out-of-pocket prescription medicine costs, which will remain EUR 592.16 per calendar year. The additional index adjustment will also not apply to general housing allowance or housing allowance for pensioners. 

Next index adjustment on 1 January 2023

The additional adjustment to the National Pensions Index does not affect the index adjustment at the beginning of 2023. Kela will confirm the National Pensions Index for 2023 in October, as usual.

Additional information