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-2023-1/2941 – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 01 January 2023 – 31 December 2023|
|Context||War in Ukraine|
|Type||Other initiatives or policies|
Responses to inflation
– Increasing income in general
|Author||Amanda Kinnunen (Oxford Research) and Eurofound|
|Measure added||30 September 2022 (updated 10 October 2022)|
To address the soaring prices, the government of Finland has introduced a support package to increase the purchasing power of families with children during 2023.
These increases are temporary and will only be valid during the year 2023.
There will also be an additional monthly family allowance in December 2022.
An increase of 20% is proposed for the child supplement to unemployment insurance and 10% for the basic income support’s child supplement. In addition, it is proposed to increase the carer's allowance for students by €10/month and the single carers's allowance by €5 per month.
The total amount earmarked for the child supplement to unemployment insurance and basic income support, as well as the carer’s allowances is around €49 million.
In late 2022, an extra month of child benefit would be paid. The additional payout would not affect the level of income support. The cost impact of this measure is estimated at €112 million. Social Insurance Institution of Finland [Kela] pays out child benefits for every child that permanently resides in Finland. The benefit is paid to the family until the child turns 17 years old.
In 2021, there were 535,576 families that received child benefits. In these families, there were 968,370 children in total which corresponds to 17% of the Finnish population.
|Does not apply to workers||Does not apply to businesses||
People on social benefits
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 is part of the government's budget, which is negotiated internally.
The leader of the Central Organisation of Finnish Trade Unions (SAK) underlines that it is important that there is a political response to the record high electricity bills. He states that support should be targeted to low-income earners and those hardest hit by the price hike.
The Finnish confederation of Industries (EK) has commented on the government’s budget stating that they understand the spending increases in exceptional circumstances. However, they remain critical to the increasing fiscal debt.
Eurofound (2022), Support package for families with children, measure FI-2023-1/2941 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2023-1_2941.html
30 January 2023
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12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
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This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.