Upcoming index adjustment of 1,0 per cent only applies to some Kela benefits – many benefits will stay at the 2024 level
Kela has confirmed the value of the National Pensions Index as of 1 January 2025. An index adjustment of 1,0 per cent will be made as of the beginning of 2025, but only to some benefits. Other upcoming changes to social security may also have an impact on benefits.
Most benefits provided by Kela are tied to the National Pensions Index. The National Pensions Index is linked to the Cost-of-Living Index, which is compiled by Statistics Finland and tracks the prices of key commodities. As prices change, the index linkage helps to maintain the purchasing power of benefits.
Kela is required by law to confirm the value of the National Pensions Index by the end of October for the following calendar year. Kela has now confirmed that the value of the index in 2025 will be 1930. This year the value is 1911. The value of the index will thus increase by 1,0 per cent, and the rates of the benefits that are linked to the index will be increased accordingly. However, no index adjustment will be made to benefits whose rates have been frozen by the Government for the years 2024 to 2027.
The following Kela benefits will be increased by 1,0 per cent as of 1 January 2025: national pension, guarantee pension, front-veterans’ supplements, survivors’ pensions, disability benefits, basic amount of the conscript’s allowance, basic amount of the social assistance and annual maximum limit on out-of-pocket medicine costs. The increase per benefit and the increased rates of the benefits are shown in a table at the end of this press release. As of 1 January 2025, the initial deductible on reimbursements for medicine expenses will be increased from EUR 50 to EUR 70 and tied to the National Pensions Index.
No index adjustments will be made in 2025 to the following Kela benefits: labour market subsidy and basic unemployment allowance, child care allowances , study grant, or the minimum amounts of sickness allowance, partial sickness allowance, daily allowances for parents, special care allowance, sickness allowance on account of human cell, tissue or organ donation, and rehabilitation allowance. The rates of these benefits will remain the same as in 2024. Index adjustments will also not be made to the criteria for determining the general housing allowance and the housing allowance for pensioners in 2025.
Benefit rates and income limits as of 1 January 2025
The benefit rates in 2025 may also be affected by other changes proposed by the Government. For example, the Government has proposed to abolish the supplementary amount to the basic unemployment allowance in 2025. Kela will provide further information about the benefit rates and the income limits for 2025 later this year, once all the Government proposals that affect Kela have been reviewed by Parliament.
The following table shows the benefit rates and income limits in 2025: Benefit rates and income limits as of 1 January 2025.
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