Social assistance reform entering into force – customers will feel the impact in coming months

An amendment to the Act on Social Assistance imposing stricter requirements and criteria for receiving the benefit enter into force at the beginning of February.

Starting from February, neglecting to apply for benefits that take precedence over social assistance (primary benefits) will become grounds for reducing the basic amount included in social assistance. Kela can reduce the basic amount by 50% if the customer does not apply for the primary benefits Kela has instructed them to apply for within one month of Kela telling them to do so. Depending on the customer’s circumstances, primary benefits can be, for example, unemployment benefits, housing allowances, student financial aid, sickness allowances, daily allowances for parents and pensions.

Kela can reduce the basic amount of social assistance by 50% also if the customer does not register with the employment services as an active jobseeker looking for full-time work within one month despite being asked to do so.

Starting from February, loss of unemployment benefits due to the customer’s own actions can also lead to a reduction of the basic amount (for instance, if a mandatory waiting period or an obligation to work is imposed, including an obligation that applies to persons under 25). The reduction is 20% in the first month and then 40%. Further, the customer failing to comply with their integration plan can also lead to a 20% reduction of the basic amount.

Kela will start sending customers requests to register as a jobseeker looking for full-time work and to apply for primary benefits as of 1 February 2026. Customers have one month to comply with the request or send a statement to Kela on why it would be unreasonable for Kela to reduce their basic amount. If the customer does not do so before the deadline, the basic amount of their social assistance will be reduced starting from the next month, unless applying the reduction would be unreasonable. In practice, this means that Kela will make the first social assistance payments that have been reduced on these grounds in March.

Basic amount reduced for all adults aged 18 or over starting from March

The legislative amendment also means that the basic amount of all customers aged 18 or over will be reduced. The basic amount of persons aged 18 or over who are living alone or living with their parents will be cut by 3% and the basic amount of other customers aged 18 or over by 2%. For example, if you are 18 or over and you live alone, your basic amount will be EUR 17.90 per month less than before. These changes will enter into force on 1 March 2026.

In addition, the monthly earned-income deduction of EUR 150 will be abolished for all customers aged 18 and over. This means that their earned income (wages and salaries) will then be taken into account in full when their benefit is calculated. However, the EUR 150 earned-income deduction will still apply to fees paid to informal caregivers and family caregivers until the end of 2027.

Financial assistance received by customers aged 18 and over will also be taken into account in full. Until now, smaller amounts of financial assistance have not been taken into account in the calculation of social assistance. The limit for such sums has been EUR 50 per month for persons living alone and EUR 100 per month for a family. These changes will enter into force on 1 March 2026.

Social assistance earmarked for rent can be paid directly to the landlord as of February

Starting from February, Kela will pay the part of social assistance earmarked for rent directly to the landlord if Kela has granted the customer a rental security deposit for their current home as part of social assistance. This also applies to all customers who have received a rental security deposit from Kela before the law was changed. This change will enter into force on 1 February 2026.

Customers should note that the amount they can get in social assistance may vary on a monthly basis. The amount of social assistance depends on the customer’s income and assets as well as expenses during each month. The part of social assistance earmarked for rent will not necessarily cover the rent in its entirety. The decision notice issued to each customer on their social assistance will tell them how much of their rent Kela will pay directly to the landlord and how much the customer may have to pay themselves.

Customers who have set up a direct debit from their bank account for the payment of rent should check that the amount of the direct debit is the same as the amount the customer has to pay themselves. We recommend removing the direct debit if necessary.

When Kela starts to pay the part of social assistance earmarked for rent directly to the landlord, it is important that the customer ensures that there are no overlapping payments. If the customer has already paid the rent in full to the landlord in the same month, it is up to the landlord and the customer to decide between themselves how any excess payment should be returned to the customer.

More information for customers:

• Apply for other benefits first (kela.fi)
• When can Kela reduce the basic amount of social assistance? (kela.fi)
• Changes to payment of social assistance: social assistance earmarked for rent to be paid directly to the landlord (kela.fi)
• Stricter criteria for social assistance as of February – what does it mean for customers? (kela.fi)