Finland ends active model that reduced unemployment benefits

Walking back with some home grown vegetables

Finland’s active unemployment protection model has been dismantled as of 1 Jan 2020, and unemployment benefits paid after that date will no longer be reduced by the model, the Ministry of Social Affairs recently announced. The model was instituted on 1 Jan 2018 to tighten the conditions for benefit eligibility with the goals of encouraging activation of the unemployed, reducing unemployment duration periods and increasing the employment rate. Under the model, the unemployed person had to meet an activity condition in order to avoid benefit curtailment. With this repeal, the Social Insurance Institution (Kela) will no longer follow the activity of the unemployment benefit recipient based on the model. If the unemployment benefit had previously been reduced on the basis of the model, it will be restored to its normal level. Unemployment benefits that were due in January but accrued in 2019 are still affected by the model cuts. 

Unemployed individuals will still be able to study or participate in job search and employment support activities organized by different agencies. Other conditions for receiving unemployment benefits also remain unchanged — in order to be eligible for unemployment benefit, a jobseeker must apply for and be prepared to accept offered jobs. 

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Sirkka Linden
by Sirkka Linden

Senior Associate, Mercer Health

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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