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-2023-1/3137 – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 01 January 2023 – 30 December 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||01 March 2023 (updated 20 March 2023)|
The Finnish government has implemented a package of measures to increase purchasing power in the face of rising prices of consumer goods. The parliament has passed temporary amendments to the Child Support Act [796/1992] (Lapsilisälaki), the Unemployment Insurance Act [1290/2002], the Income Support Act [1412/1997] (Työttömyysturvalaki), the Student Allowance Act [65/1994] (Opintotukilaki) and the Health Insurance Act [1224/2004] (Sairasvakuutuslaki). All temporary changes to the acts will enter into force on 1 January 2023 and will remain in force until the end of 2023.
To support families with children who are in particular negatively affected by rising prices, the amendments to the laws include a temporary increase in the child supplement to unemployment, increase in child benefit for single parents, an increase in custodial education allowance and a supplement to income support for children under 18. The level of co-payment level for medicines, which is tied to the cost-of-living index, is frozen through an amendment to the Health Insurance Act [1230/2022] in 2023 at the 2022 level.
The government estimates that a 20% increase in the child supplement to unemployment benefit would cost the Finnish Social Insurance Institution (Kela) around €26 million in unemployment benefits. An increase in the childcare allowance for students would increase government expenditure by €1.7 million, and an increase in the single-parent child allowance by €9 million in 2023. An increase in the basic rate of income support for children under 18 would increase expenditure on basic income support by €18.5 million. However, increases to other benefits are excepted to reduce the expenditure on basic income support by €11.5 million. In addition, the increase in the child increases in unemployment insurance is estimated to reduce expenditure on housing support by around €2 million.
In December 2021, there were 535,576 families that received child benefits, out of which 107,228 received the supplement for single parents. In 2020, 35.9% of earnings-related daily allowance recipients, 30.1% of basic daily allowance recipients and 28.3% of labour market support recipients received a child supplement. During the education year of 2021-2022, child supplement to study allowance was received by 26,800 students.
|Does not apply to workers||Does not apply to businesses||
People on social benefits
People on low incomes
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners were invited to leave a statement on the government proposal.
The Confederation of Finnish Industries EK [Elinkeinoelämän keskusliitto] considered the amendments to be understandable. The peak-level trade union The Finnish Confederation of Professionals STTK voiced support for the amendments.
Eurofound (2023), Legislation package to strengthen purchasing power in 2023, measure FI-2023-1/3137 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2023-1_3137.html
30 January 2023
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.