Finland Tightens Access to Welfare Benefits

(MENAFN) Finland has moved to restrict access to last-resort welfare payments in a sweeping reform package launched Sunday, as the Nordic nation grapples with unemployment levels that now exceed every other European Union member state.

The overhaul, rolling out in two phases starting February 1 and concluding March 1, imposes stricter requirements on recipients of basic social assistance—a safety-net program managed by the Social Insurance Institution of Finland (Kela)—according to a public broadcaster.

Currently, single adults receive a monthly basic allowance of €593.55 ($702) in 2025.

The revised framework empowers Kela to slash the basic allowance by as much as 50% for individuals who neglect to pursue primary entitlements like unemployment compensation or student aid, or who fail to register for full-time job placement services.

Further cuts may be triggered when beneficiaries turn down employment opportunities, abandon job searches, or skip mandated integration programs.

Starting March 1, all adult recipients will face an automatic 2–3% reduction in their basic allowance, while earnings and financial contributions from relatives will now be calculated in full when determining benefit eligibility.

The austerity measures under Prime Minister Petteri Orpo's administration arrive as Finland's jobless rate has climbed to 10.7%—the EU's highest—a surge attributed to the collapse in commerce stemming from the continuing conflict in Ukraine.

In statements to the broadcaster, Finnish members of the European Parliament have pressed for expanded EU assistance, contending that Finland shoulders an unfair economic penalty because of its extensive frontier with Russia.

MEP Mika Aaltola noted that security threats have discouraged international capital, while fellow representative Pekka Toveri advocated for EU-financed infrastructure initiatives to stimulate job creation.

Yet Sebastian Tynkkynen argued the EU has no place in resolving Finland's unemployment challenge, even as he backs higher outlays for defense and infrastructure.

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