Melike Pala
01 February 2026•Update: 02 February 2026
BRUSSELS
Finland announced on Sunday that it would tighten access to basic social assistance as part of a welfare reform under Prime Minister Petteri Orpo's government, as the country faces the highest unemployment rate in the European Union.
The changes, introduced in two stages on Feb. 1 and March 1, increase the conditionality of basic social assistance, a last-resort benefit administered by the Social Insurance Institution of Finland (Kela), public broadcaster YLE reported.
In 2025, the basic allowance for a single adult stands at €593.55 ($702) per month.
Under the new rules, Kela can cut the basic allowance by up to 50% if applicants fail to apply for primary benefits, such as unemployment aid or student support, or do not register as full-time job seekers.
Additional reductions may apply if recipients refuse job offers, fail to seek work, or neglect integration plans.
From March 1, the basic allowance will be reduced by 2–3% for all adults, while earned income and cash support from family members will be fully counted when calculating benefits.
The welfare tightening comes as Finland's unemployment rate has risen to 10.7%, the highest in the EU, following the sharp decline in trade with the ongoing war in Ukraine.
Speaking to YLE, Finnish members of the European Parliament have called for greater EU support, arguing that Finland bears a disproportionate economic burden due to its long border with Russia.
MEP Mika Aaltola said security risks have deterred foreign investment, while his colleague Pekka Toveri urged EU-backed infrastructure projects to support employment.
However, Sebastian Tynkkynen said the EU should have no role in addressing Finland's unemployment, despite supporting increased defense and infrastructure spending.
