Changes to Kela benefits in 2025
There will be a number of changes to Kela benefits and their eligibility criteria in 2025. Some of the changes will take effect at the beginning of 2025, others not until later in the year. Many of the changes affect benefits for young people and students. There will also be changes to sickness benefits.
The pensions, disability allowances, social assistance and conscript’s allowance paid by Kela will be increased by 1.0% on 1 January 2025 as an index adjustment measure. The child maintenance allowance will also be increased. Due to the freeze in the National Pensions Index, there will be no increases to other benefits. The index freeze will continue until 2027.
This press release details the changes to social security that Parliament has approved during its autumn session. There are other changes planned for 2025 that are still pending in Parliament. For example, the proposed changes to reimbursements from Kela have not been approved by Parliament yet.
Changes to benefits for students
Students will be transferred from the general housing allowance scheme to the student housing supplement scheme as of 1 August 2025. Students are eligible for the housing supplement if they are entitled to student financial aid and are living in rental housing or right-of-occupancy housing. Those who live with their child or their partner’s child will not be transferred to the student housing supplement scheme, but will instead be eligible for general housing allowance as before.
Read more about the planned changes to benefits for students.
As of 1 August 2025, the right to school transport subsidy will only include students who are entitled to free upper secondary level education.
Read more about the change to school transport subsidy.
Study grants will not be index adjusted. This means that 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.
The due dates for payment of the healthcare fee for higher education students will be 15 March and 15 November. The fee will decrease slightly and will be EUR 71.20 per academic year, that is to say EUR 35.60 per term. The late fee will remain unchanged at EUR 5.00.
Changes in the minimum ages for benefits for young people
The minimum age for rehabilitation subsidy, disability pension, rehabilitation allowances and sickness allowances from Kela will be raised from 16 to 18 years from the beginning of 2025. 17-year-olds who have suspended their compulsory education will no longer be entitled to unemployment benefit.
In addition, the maximum age for disability allowance for children will be raised to 18 years from the beginning of 2027 and at the same time the minimum age for disability allowance for adults and care allowance for pensioners will be changed to 18 years. These changes do not apply to clients who are already receiving any of these benefits when the changes enter into force, but to those who begin to receive one of the benefits in question after the change has entered into force.
Read more about the changes to the age limits.
Changes in vocational rehabilitation for young persons, rehabilitation allowances and rehabilitation allowances for young persons
There will be changes in the criteria for granting vocational rehabilitation for young persons as of 1 January 2025. Vocational rehabilitation for young persons will be targeted more effectively at young persons who are not in school or work or who are generally at risk of exclusion. A young person’s need for other services and the other services they are already receiving will also be taken into account when assessing the potential usefulness of rehabilitation.
There will also be changes in the criteria for granting rehabilitation allowances as of 1 January 2025. Participation in Nuotti coaching will no longer qualify the participants for rehabilitation allowance.
Rehabilitation allowance paid before and between periods of vocational rehabilitation for young persons will generally be paid for a maximum of three months per calendar year. The rehabilitation allowance for young persons will only be available before and between rehabilitation periods if it is necessary to secure the client’s financial situation or the progress of the rehabilitation.
Personal income will also affect the amount of the rehabilitation allowance for young persons. If the client has earnings from paid employment or self-employment exceeding EUR 800 per month, the excess is deducted from the rehabilitation allowance.
Starting from August 2025, student financial aid will no longer be available simultaneously with the rehabilitation allowance from Kela. The change will apply to young people who enter rehabilitation on 1 August 2025 or later.
Read more about the changes to rehabilitation for young persons.
Changes to unemployment benefits
There will be a number of changes to unemployment benefits as of 1 January 2025. The changes apply to labour market subsidy, to commuting and relocation allowance and to unemployment benefits during participation in employment-promoting services.
The minimum amount of partial labour market subsidy paid by Kela will be reduced. Following the reduction, the minimum amount of partial labour market subsidy will be 35 per cent of the full amount. At present, the partial labour market subsidy always comes to a minimum of 50 per cent of the full amount.
Any compensation for informal or family caregivers that a parent receives will no longer reduce the labour market subsidy of an unemployed person living with their parents as of 1 January 2025.
The change concerning compensation for informal or family caregivers only applies to situations where a parent acts as a caregiver on a not-for-profit basis.
Commuting and relocation allowance is a benefit available for work or training. This benefit will no longer be available at an increased rate.
Unemployment benefits will no longer be paid at an increased rate during participation in employment-promoting services.
The basic unemployment allowance and the labour market subsidy will not increase in 2025. The amount of both benefits will remain the same as in 2024: EUR 37.21 per day.
Read more about the changes to unemployment benefits.
Changes to the general housing allowance
Changes will be made to the general housing allowance as of 1 January 2025, reducing the amount of housing allowance for some customers and stopping it altogether for some. The changes mean that assets will be taken into account when calculating the amount of housing allowance, and the benefit will no longer be available for owner-occupied homes.
Kajaani, Kouvola, Lappeenranta, Mikkeli, Pori and Vaasa will be transferred from municipal category II to municipal category III. The amount of housing allowance will be reduced for almost all recipients in these cities.
There will be no index adjustments to the general housing allowance in 2025.
The change concerning owner-occupied homes will enter into force on 1 January 2025. December 2024 will be the last month for which general housing allowance is still available for owner-occupied homes. The other changes will also enter into force on 1 January 2025, but they will not have an impact on the amount of the general housing allowance until the next time the housing allowance is reviewed. Customers who apply for general housing allowance starting 1 January 2025 or later will be immediately affected by the changes.
Read more about the changes to the general housing allowance.
Increased social assistance and help with food expenses due to coeliac disease
Basic social assistance will be raised by 1.0% in line with the National Pensions Index as of 1 January 2025. This means that the basic amount of social assistance for persons living alone will be increased by EUR 5.84 to EUR 593.55 per month.
Starting from March 2025, an additional EUR 38 per month can be accepted under the Kela social assistance scheme as food expenses caused by coeliac disease. This amount will apply to each family member with coeliac disease who is 16 or older. The amount will be taken into account only for those whose coeliac disease has been appropriately diagnosed.
Learn more about the changes in social assistance.
Very few changes to family benefits
Child benefits will remain unchanged. The minimum amounts of the pregnancy, paternity and parental allowances and the special care allowance will be the same in 2025 as in 2023 and 2024: EUR 31.99 per day. The rates of the child care allowance will also remain the same on account of an indexation freeze.
The child maintenance allowance and child support will be increased by 1.08% in line with the cost-of-living index. In 2025, the full child maintenance allowance will be EUR 198.13 per month per child (previously EUR 196.02 per month).
The income limits to qualify for an exemption from payment of child support debt will be adjusted as of 1 January 2025. Persons liable for maintenance of a child will then qualify for the exemption if their monthly income does not exceed EUR 1338.86. The income limit goes up by EUR 334.72 per month for each additional child under the age of 18. Previously, the amounts were EUR 1,324.57 per month and EUR 331.15 per month, respectively.
Find out more about the changes to child maintenance allowance and child support.
Increases in pensions
In 2025, the full amount of the national pension for recipients living alone will be EUR 783.41 per month (previously EUR 775.70 per month). The corresponding amount for those living with a partner will be EUR 699.42 per month (previously EUR 692.54 per month).
The full amount of the guarantee pension will be EUR 986.30 per month (previously EUR 976.59 per month).
The other pensions will also be index adjusted upwards by 1.0%. In 2025, the initial pension for surviving spouses will be EUR 387.11 per month, and the basic amount of the continuing pension EUR 121.25 per month. The basic amount of the orphans' pension will be EUR 71.23 per month. The increase available to pensioners with a dependent child under 16 years of age will be EUR 26.18 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 will be able to earn a maximum of 978.34 euros per month in 2025 without any effect on the continued payment of the disability pension or guarantee pension.
Payment of national pensions to other countries ends
Kela will stop paying national pensions to recipients in countries that apply EU regulations other than Finland as of 1 February 2025. This change will also have an impact on which country is responsible for the costs of a person’s medical treatment and on whether they can receive care allowance for pensioners. Further, the change may affect the amount of national pension received by customers who now live in Finland but have in the past lived or worked in another EU or EEA country, Switzerland or the United Kingdom.
Read more about the changes to national pensions.
Changes in the housing allowance for pensioners
For persons receiving housing allowance for pensioners, income and assets will have a greater effect in reducing the allowance starting from 1 January 2025.
An indexation freeze that was put in place earlier will also be extended. This means that the amounts of heating, water and maintenance costs and the maximum housing costs recognised in the pensioners’ housing allowance scheme will not go up in 2025.
Read more about the changes in the housing allowance for pensioners.
Increases in disability benefits
Disability allowances are adjusted to index on 1 January 2025. 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 109.97 per month (previously EUR 108.89 per month)
- middle rate: EUR 256.62 per month (previously EUR 254.10 per month)
- highest rate: EUR 497.60 per month (previously EUR 492.71 per month)
Care allowance for pensioners
- basic rate: EUR 84.17 per month (previously EUR 83 per month)
- middle rate: EUR 183.36 per month (previously EUR 181.56 per month)
- highest rate: EUR 387.73 per month (previously EUR 383.92 per month)
- disability supplement for war veterans: EUR 127.04 per month (previously EUR 125.79 per month)
Changes to reimbursements for medicine expenses
On 1 January 2025, the initial deductible on reimbursements for medicine costs will go up from EUR 50 to EUR 70.
In addition, the initial deductible will be tied to the National Pensions Index, so that it will be index adjusted every year.
Read more about changes to reimbursements for medicine expenses.
The maximum annual limit on out-of-pocket medicine costs was EUR 626.94 in 2024. In 2025, the limit will be raised to EUR 633.17.
The maximum annual limit on out-of-pocket medicine costs is the annual upper limit for the medicine costs that customers pay themselves when buying reimbursable medicines. 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.
As of 1 January 2025, all biological medicines, with the exception of insulins, will be eligible for generic substitution. Generic substitution is a practice whereby a pharmacy can substitute a less expensive equivalent medicine for the brand-name medicine that has been prescribed.
Autumn 2025 will see a trial run with so-called Kela credit for the payment of annual out-of-pocket medicine costs. The trial means that credit will be extended to low-income customers who reach the annual maximum limit with a single purchase.
Read more about the trial run with Kela credit (in Finnish).
Changes in sickness and rehabilitation allowances
The calculation formula for sickness and rehabilitation allowances will change on 1 January 2025
In 2024, sickness and rehabilitation allowances have been calculated according to the following principles: For persons with an annual income of EUR 35,769 or less, the amount of the sickness allowance has been 70 per cent of the annual income divided by 300. For persons with an income over EUR 35,769, only 20 per cent of the annual income, divided by 300, has counted towards the allowance.
In 2025, the annual income limit will be lowered from EUR 35,769 to EUR 28,241. At the same time, the compensation rate for income in excess of the limit will drop from 20 to 15 per cent.
The changed calculation formula will reduce the allowances paid to customers, including employer customers, in cases where the person’s annual income exceeds EUR 28,241.
The changed calculation formula will also affect the partial sickness allowance, which is the equivalent of half the regular sickness allowance.
Read more about the change in the way sickness and rehabilitation allowances are calculated.
Government proposal: Kela reimbursements to be introduced for fertility treatments and physiotherapy
The Government has submitted a proposal on Kela reimbursement for fertility treatments in private healthcare as of 1 January 2025. Reimbursement from Kela would be available for medical examinations and treatments performed or prescribed by a gynaecologist or an obstetrician. Reimbursement would be available only when the cause of infertility is a medical condition. Fertility treatments other than those given on the basis of a medical condition or some other health-related reason would not be reimbursed.
The Government has also submitted a proposal to reintroduce Kela reimbursements for physiotherapy as of 1 April 2025. Reimbursement from Kela would be available for appointments with a physiotherapist without a referral from a doctor, for up to 4 appointments per calendar year.
The Government further proposes the following:
- Increased reimbursement for appointments with gynaecologists.
- Kela reimbursement for appointments with an oral hygienist without a referral from a dentist, for up to 2 appointments per calendar year.
- Increased Kela reimbursement for fees for dental care and mental health services.
If Parliament approves these changes, they will take effect on 1 April 2025. The proposed amendments are still under review in Parliament.
Read more about the planned changes to Kela reimbursements.
Trial run with freedom of choice in healthcare for people aged 65+
The Government is preparing to introduce freedom of choice in healthcare on a trial basis for people aged 65 or over. In practice, this will mean that people over the age of 65 would be able to book appointments with a private general practitioner and pay only an amount corresponding to the client fee in public healthcare. The client fee in public healthcare will be approximately 28 euros in 2025. Auxiliary charges, such as service fees or administrative fees, would not be charged at all for appointments included in this trial run. Under the current plans, the trial run is scheduled to begin on 1 September 2025.
Trial run with designated personal doctors
The Government is preparing to introduce a model with designated personal doctors on a trial basis. The trial run would be carried out jointly with the wellbeing services counties. Kela reimbursements could be used in the development of a model with designated personal doctors. The plan is for this trial run to begin in autumn 2025 at the earliest.
No change to earnings threshold for social security coverage for persons employed in Finland
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. This earnings threshold is unchanged from 2023 and 2024. This corresponds to the amount of the basic unemployment allowance per month. Benefits are available for months in which the threshold is exceeded.