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Kela benefit payouts rose briskly last year

Benefits paid by the Social Insurance Institution (Kela) soared by nearly three-quarters of a billion euros last year.

A large window with the words "Kela / Fpa" in white and blurry reflections of passersby.
A Kela office in Helsinki's Kamppi neighbourhood. Image: Heikki Saukkomaa / Lehtikuva
  • Yle News

Kela's benefit expenses rose by 710 million euros, or 4.3 percent, in 2024. In total, it paid out nearly 17.3 billion euros in benefits last year, the agency said on Thursday.

The biggest change was in social assistance expenditure. Compared to 2023, Kela's basic social assistance expenditure increased by 14.8 percent. In total, Kela paid out 824.7 million euros in basic social assistance in 2024.

The payments, which are intended to cover the essential costs of daily living, average just under 600 euros per month for an individual living alone, or roughly 19 euros a day.

Medical care reimbursements spike by 24%

Spending on health insurance benefits and student benefits also climbed. Health insurance benefits went up by 8.7 percent from 2023. These included parental allowances, which rose by more than 16 percent, medicine reimbursements, up by almost six percent and other medical care reimbursements, which spiked by around 24 percent.

The amount of study benefits paid out increased by 8.6 percent, with school travel subsidies up by close to 20 percent.

On the other hand, childcare benefits decreased by 12.6 percent while statutory home care benefits fell by nearly 18 percent. Rehabilitations allowances were also down by about 11 percent.

The amount of unemployment benefits paid edged down by one percent, while labour market subsidies, which average around 800 euros a month, declined by 2.2 percent.

The right-wing government led by Prime Minister Petteri Orpo (NCP) has set a target of halving the number of social assistance recipients, aiming to save the state 70 million euros a year. Earlier this year, a government working group recommended slashing the basic social assistance allowance by 50 percent if a recipient fails to register as a full-time job seeker after being prompted to do so.