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The Finnish social security system provides basic economic security in situations where a person is unable to provide for himself or herself. The system provides benefits and services in the following situations: old age, incapacity for work, illness, unemployment, childbirth, death of the family breadwinner, rehabilitation or studies.
Overall, the Finnish social security system covers those who live in Finland on a permanent basis and those who work in Finland. In certain situations, persons who stay abroad can also be covered by the Finnish social security system. From the system, employers receive compensations for the costs for the employees’ sick leaves, family leaves and occupational health care.
In Finland, the Social Insurance Institution (Kela), the municipalities, the unemployment funds, pension companies and other insurance providers implement the social security system. Some social security benefits are based on previously earned incomes or employment and some benefits are not dependent on incomes or previous employment. The social security system is financed through taxes and insurance contributions.