Changes to Kela benefits in 2024
The number of changes to Kela benefits and eligibility criteria scheduled for 2024 is unusually large. Some of the changes will take effect at the beginning of 2024, others not until later in 2024.
The pensions, disability allowances, social assistance and conscript’s allowances paid by Kela will be increased by 5.9% on 1 January 2024 as an index adjustment measure. Also the child maintenance allowances will go up. No other benefits will be raised in line with the index.
There will be some cuts to unemployment benefits. Providers of minor children have qualified for a so-called child increase to augment their unemployment benefits. These child increases will be reduced at the beginning of 2024, following the expiry of a temporary rate increase in effect during 2023. All child increases will end on 1 April 2024. Additionally, a EUR 300 exempt amount on unemployment benefits will expire on 1 April 2024, following which all income earned during a period of unemployment will reduce benefits.
The amount of the general housing allowance will be reduced. This will affect reviews of housing allowances that are in payment and Kela’s decisions on new applications for housing allowance from 1 April 2024 onward. General housing allowance will no longer be available for owner-occupied homes starting 1 January 2025.
Child benefits and the provider supplement to student financial aid will be raised at the start of the year and in April. The government guarantees for student loans will rise in August.
The annual maximum limit on out-of-pocket medicine costs will increase to EUR 626.94. The reimbursements available from Kela for private medical care will go up.
This press release details the changes to social security that Parliament has approved during its autumn session. A number of further changes have been planned for 2024, but they will not be submitted to parliamentary review until spring 2024. They include the abolishment of the job alternation compensation and adult education allowance in August and a spate of additional changes to unemployment benefits in September.
Changes to family benefits
The minimum rates of the maternity, paternity and parental allowance and of the special care allowance will be the same in 2024 as in 2023 (EUR 31.99 per day). The euro amounts of the child care allowance will also remain the same on account of an indexation freeze.
The rates of child benefits paid to families with four or more children will be increased starting from 1 January 2024. The amount of child benefit paid for a family’s fourth child will be increased by EUR 10, making the total amount EUR 173.24 per month. The amount of child benefit paid for the fifth child and each child after that will also be increased by EUR 10 to EUR 192.69 per month. The child benefit paid for children under three will be increased by EUR 26 from 1 April 2024.
The single-parent supplement to the child benefit will be increased from its current amount of EUR 5 per month to EUR 73.30 per month starting 1 January 2024.
The amount of the child maintenance allowance and of child support will be increased by 4.84% in line with the cost-of-living index. In 2024, the full child maintenance allowance will be EUR 196.02 per month per child (previously EUR 186.97 per month).
The income limits to qualify for an exemption on child support debt will be adjusted as well. Persons liable for maintenance qualify for the exemption if their monthly income does not exceed EUR 1,324.57. The income limit goes up by EUR 331.15 per month for each additional minor child. Previously, the corresponding amounts were EUR 1,263.43 per month and EUR 315.86 per month.
Changes to student financial aid and new due dates for the healthcare fee
The government guarantees for student loans will go up. Students aged 18 or over who are in higher education or at the upper secondary level can take out up to EUR 850 per month in student loan funds. For upper secondary level students under 18, the maximum student loan amount is EUR 400 per month.
Study grants will not be index adjusted; i.e., their rates will remain the same. For example, an 18-year-old student living alone will qualify for a study grant of EUR 279.38 per month.
However, the provider supplement to the study grant will go up by EUR 30. A EUR 10 increase was applied to the provider supplements throughout 2023, so the effective increase in 2024 will be EUR 20. The new monthly amount of the provider supplement will be EUR 141.63.
More information is found in this press release.
The due dates for the healthcare fee for higher education students will change. The due date for the spring term is 15 March for students who register as attending by 31 January. The new due date for the autumn term will be 15 November, applicable to students who register as attending by 30 September. The healthcare fee will remain the same as in 2023, i.e. EUR 36.80 per term.
Several changes to unemployment benefits
The criteria governing the labour market subsidies and basic unemployment allowances paid by Kela will change. Some of the changes will take effect at the turn of the year and others not until later in 2024.
A number of changes that will affect the start of entitlement to unemployment benefits will come into effect immediately at the beginning of the year. The waiting period to qualify for unemployment benefits will be extended from five days to seven days. Periodisation will also be introduced for the holiday compensations paid to wage and salary earners.
The EUR 300 monthly exempt amount will no longer apply to unemployment benefits. The exempt amount is the amount of money that a recipient of an unemployment benefit may earn without a reduction in unemployment benefits.
Despite the change, doing part-time work will continue to make sense financially.
The work requirement applicable to employees will also change starting 2 September 2024. It will be extended from approximately six months to 12 months. Wages earned during the calendar month will begin to count towards the work requirement. Each calendar month in which wages total at least EUR 930 counts as one month for purposes of meeting the work requirement.
Each calendar month in which earnings are at least EUR 465 but less than EUR 930 counts as half a month towards the work requirement. Like before, the work requirement does not have to be accrued in a consecutive period of time but over a reference period of 28 months.
Child increases to unemployment benefits to be discontinued
Basic unemployment allowances and labour market subsidies will not be increased in 2024 but will remain at the same level as in 2023, i.e. EUR 37.21 per day.
The supplementary amount payable with unemployment benefits will also remain the same as in 2023 (EUR 5.29 per day).
The child increases to unemployment benefits will be reduced at the start of the year. The child increases were increased temporarily by 20% in 2023. This temporary increase will expire on 31 December 2023. Rates of the child increases between 1 January and 31 March 2024:
EUR 5.84 per day for one child (previously EUR 7.01 per day)
EUR 8.57 per day in total for two children (previously EUR 10.29 per day)
EUR 11.05 per day in total for three or more children (previously EUR 13.26 per day).
No child increases will be available for labour market subsidies, basic unemployment allowances and commuting and relocation allowances starting 1 April 2024.
More information is found in this press release.
General housing allowance reduced
A number of changes will be made to the general housing allowance, which will reduce its amount in 2024. Most of the changes will come into effect on 1 April 2024.
The basic deductible for the general housing allowance will be increased from 42% to 50%. It will be equal to 50% of income exceeding the minimum income limit for the allowance.
The compensation percentage of the general housing allowance is reduced from the current 80% to 70% of the difference between the acceptable housing costs and the basic deductible. After this change, the housing allowance will cover a smaller portion of a household's housing costs.
The EUR 300 deduction under the general housing allowance scheme for earned income will no longer be available. The abolishment of the earned income deduction will reduce the housing allowance of households whose members have wage or salary income, self-employment income or farm income.
The maximum housing costs taken into account in Helsinki will be reduced. The municipality categories 1 and 2 for determining the maximum housing costs will be merged, with the result that the maximum housing costs will be determined according to the current municipality category 2. Previously, the only municipality in category 1 was Helsinki, which will now join the rest of the Greater Helsinki area municipalities in category 2.
The changes will affect housing allowance reviews and awards starting from 1 April 2024.
More information is found in this press release.
Increases to heating costs covered by the general housing allowance will expire at the end of 2023
Due to inflation and higher electricity costs, additional increases were introduced at the beginning of 2023 to general housing allowances. These increases will expire at the end of 2023. The increases affect the amount of recognised heating costs under the general housing allowance scheme. They will expire on 31 December 2023.
In 2024, an amount of EUR 46 per month can be taken into account as separate heating costs for the general housing allowance in a single-person household (compared with EUR 66 per month in 2023).
If the household includes more than one person, EUR 16 per month is added for each additional person (compared with EUR 22 per month in 2023).
The recognised maintenance costs for single-family homes will also change in 2024. For example, in 2023, the amount of maintenance costs taken into account for the general housing allowance for a one-person household will be EUR 107 per month (compared with EUR 155 per month in 2023).
General housing allowance will no longer be available for owner-occupied homes in 2025
Starting 1 January 2025, general housing allowance will no longer available for housing costs in an owner-occupied home. December 2024 will be the last month for which general housing allowance is available for owner-occupied homes.
The change does not apply to right-of-occupancy or part-ownership homes. However, in the case of right-of-occupancy homes, interest payments on housing loans will no longer be recognised as housing costs. The change will take effect on 1 January 2025.
Social assistance: Acceptable housing costs will change and the basic amount of the assistance will be raised in accordance with the index
There are municipality-specific maximum limits for the amount of housing costs that can be recognised under the social assistance scheme. Kela can recognise housing costs that exceed the maximum limit if there are special grounds for this. A legislative amendment entering into force on 1 April 2024 will impose further limits to what counts as special grounds.
Basic social assistance will be raised by 5.9% in line with the National Pensions Index. This means that the basic amount of social assistance for persons living alone will be increased by EUR 32.60 to EUR 587.71 per month. The temporary increase of 10% made to the basic amounts for children for 2023 will end on 31 December 2023, however. Therefore, the basic amounts for children will be smaller in 2024 despite the index adjustment.
More information is found in this press release.
Increases in pensions
In 2024, the full amount of the national pension for recipients living alone will be EUR 775.70 per month (previously EUR 732.67 per month). The corresponding amount for those living together with another person will be EUR 692.54 per month (previously EUR 654.13 per month).
The full amount of the guarantee pension will be EUR 976.59 per month (previously EUR 922.42 per month).
The other pensions will also be index adjusted upwards by 5.9%. In 2024, the initial pension for surviving spouses will be EUR 383.30 per month, and the basic amount of the continuing pension EUR 120.06 per month. The basic amount of the orphans' pension will be EUR 70.53 per month.
The increase available to pensioners with a dependent child under 16 years of age will be EUR 25.92 per month.
Going forward, recipients of disability and guarantee pension will be able to earn more without having to put the disability pension on hold. Recipients of a disability pension can in 2024 earn a maximum of EUR 976.59 per month without any effect on the further payment of the disability pension or guarantee pension.
Increases in front-veterans’ supplements
The front-veterans’ supplement will be EUR 146.28 per month starting 1 January 2024, while the full additional front-veterans' supplement will be EUR 300.97 per month for recipients living alone and EUR 263.55 per month for those living together with another person.
The amounts of the front-veterans’ supplements (both the regular supplement and the supplement payable abroad) will go up to EUR 200.01 per month in accordance with a proposal put forward by the parliamentary groups. The increased amounts will be available starting 1 May 2024.
Indexation freeze for the housing allowance for pensioners
The index-linked determination rules for the housing allowance for pensioners will remain the same as in 2023. Heating, water and maintenance costs and the maximum amounts of housing costs will also not be adjusted in 2024. Normally, a separate decree is issued on them annually.
Housing allowance for pensioners will continue to be available for owner-occupied homes if the eligibility criteria are fulfilled. The compensation percentage (85%) and the additional deductible percentage (41.3%) will stay the same as well.
Increases in disability benefits
Disability allowances are adjusted to index on 1 January 2024. The new rates will be as follows:
Disability allowance for persons under 16 years and disability allowance for persons aged 16 years or over
- basic rate: EUR 108.89 per month (previously EUR 102.85 per month)
- middle rate: EUR 254.10 per month (previously EUR 240 per month)
- highest rate: EUR 492.71 per month (previously EUR 465.38 per month).
Care allowance for pensioners
- basic rate: EUR 83.34 per month (previously EUR 78.72 per month)
- middle rate: EUR 181.56 per month (previously EUR 171.49 per month)
- highest rate: EUR 383.92 per month (previously EUR 362.62 per month).
disability supplement for war veterans: EUR 125.79 per month (previously EUR 118.81 per month)
Higher maximum limit on out-of-pocket medicine costs
In 2022 and 2023, the annual maximum limit on out-of-pocket medicine costs has been EUR 592.16. In 2024, the limit will be raised to EUR 626.94.
The annual maximum limit on out-of-pocket medicine costs is the annual upper limit for the reimbursed medicine expenses that customers pay themselves and once they reach this limit they are entitled to additional reimbursement. After reaching the maximum limit, customers only pay a copayment of EUR 2.50 per purchase for each reimbursable product. The purpose of the additional reimbursement is to keep the medicine expenses reasonable.
Increased reimbursements from Kela for private medical care
In 2024, Kela will reimburse EUR 30 for an appointment with a general practitioner or a medical specialist and EUR 25 for a remote appointment instead of the current reimbursement of EUR 8. Reimbursements for a basic dental examination performed by a dentist will increase from EUR 15.50 to EUR 30. Reimbursements for psychiatric consultations and care will go up as well. They will range between EUR 30 and EUR 40 depending on the length of the consultation.
The rates of reimbursement have been published in a list.
More information is found in this press release.
No changes to sickness allowance or rehabilitation allowance
Due to an indexation freeze, the minimum amounts of the sickness allowance and the rehabilitation allowance will be the same in 2024 as in 2023 (EUR 31.99 per day).
Decrease in the rehabilitation allowance for young persons and the allowance payable during vocational rehabilitation
As of 1 January 2024, the minimum rates of the rehabilitation allowance for young persons and the allowance paid during vocational rehabilitation will be reduced to the level of the regular rehabilitation allowance, i.e. EUR 31.99 per working day. The minimum allowance rate applies to individuals who have little or no income.
In future, the amount of rehabilitation allowance will be determined on the same grounds regardless of the type of rehabilitation, even in cases where the amount of rehabilitation allowance is higher than the minimum amount.
The prior authorisation process specified by the Directive on Patients’ Rights in Cross-Border Healthcare will not be adopted
The Act on Cross-Border Healthcare was amended 1 May 2023. A new prior authorisation was planned to be introduced at the beginning of 2024 in accordance with the Directive on Patients' Rights in Cross-Border Healthcare. It refers to specific situations in which customers must seek prior authorisation to qualify for reimbursement of medical care expenses incurred abroad. However, the range of services available in the Finnish healthcare system currently does not include procedures that would allow the prior authorisation to be adopted.
New rehabilitation services
A new mental health rehabilitation course will be launched on 1 February 2024 for young persons between 16 and 29 who have been diagnosed with mild or moderate depression or anxiety disorder that limits their ability to work or study. The course will include both face-to-face and telerehabilitation components.
Starting 1 March 2024, Kela will trial a new type of group rehabilitation for 18 to 68 year-olds with diabetes or sleep apnea. About 90 clients will be enrolled in the Muutoksen voima (“Force of change”) group rehabilitation programme, which offers support for positive lifestyle changes.
A new rehabilitation course for persons with musculoskeletal disorders will start on 1 September 2024. It is the first multidisciplinary rehabilitation service that Kela is offering exclusively in a telerehabilitation setting.
Earnings threshold to qualify for social security coverage will not change at the turn of the year
Workers arriving in Finland from another country may be eligible for social security benefits from Kela. They are eligible if they earn at least EUR 800.02 per month (the same threshold as in 2023). This corresponds to the amount of the basic unemployment allowance per month. Benefits are available for months in which the threshold is exceeded.
Additional information for customers