Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure FI-2022-32/2201 – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 01 August 2022 – 31 July 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Increasing income in general
|Author||Amanda Kinnunen (Oxford Research) and Eurofound|
|Measure added||03 May 2022 (updated 20 June 2022)|
To mitigate the increasing living costs for those most in need of support in society, the government is proposing an additional index-based adjustment resulting in an increase in study allowance in 2022.
The legal framework underlying the social benefits are the the Pension Index Act 456/2001 (Laki kansaneläkeindeksistä), the Student Allowance Act 65/1994 (Opintotukilaki) and the Adult Education Benefits Act 1276/2000 (Laki aikuiskoulutusetuuksista). These laws set the framework for the endowments index adjustments.
As part of the government’s seconds supplementary budget of 2022, the government is proposing an additional index increase in study allowance which is meant to mitigate the effects of increasing living costs for low-income groups. Other social benefits are also proposed to be increased, see related case . In practice this entails a 3.5% increase in each benefit.
For students the applicable allowances covered are the study allowance, the carer's study allowance, the learning materials allowance as well as the adult education allowance.
Based on a preliminary estimate, the increase in endowments adds up to €120 million in government spending as well as reduces tax income by €60 million.
In 2020, there were 320,200 recipients of study allowance in Finland.
|Does not apply to workers||Does not apply to businesses||
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
The measure did not undergo a consultation round.
The Central Organisation of Finnish Trade Unions SAK has complimented the government on the measure that they consider to be well targeted to those most in need in the light of rising living costs. The Confederation of Finnish Industries has not issued a press release regarding the government’s fiscal plans.
Eurofound (2022), Increase in study allowances to mitigate the effects of increased cost of living, measure FI-2022-32/2201 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2022-32_2201.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.