Changes to social security and labour legislation in 2026

Unemployment security

Unemployment security waiting periods will be tightened

Unemployment security waiting periods (karenssi), i.e. periods during which a job seeker does not receive unemployment benefit, are being tightened.

In the future, failure to seek work or a first administrative misstep will be sanctioned by loss of income for seven days. This new rule will come into effect on 1 March 2026.

A second such lapse will be sanctioned by an indefinite suspension of unemployment benefit until the claimant has been working or receiving services for six weeks or has participated in another service or activity approved by the employment services.

• In the future, it is very important that the job seeker attends to agreed job-related meetings, responds to job offers and other deadlines on time.  
  

The validity of job search expires due to one failure to meet job search requirements

From the beginning of March 2026, the validity of job search expires if the unemployed person fails to contact the employment authority within the deadline and in the manner required by the authority.

• When the validity of job search expires, it means that unemployment benefit will be suspended.

Job opportunities indicated by the employment authority are immediately binding

As of 1 January 2026, employment offers made by the employment authority (previously known as job offers) are binding on the unemployed person immediately from the start of unemployment.

In the future, applying for a job indicated by the employment authority will not be counted in the quantitative job search obligation.

• As a rule, the unemployed person must apply for four jobs per month and any possible jobs indicated by the employment authority.

The obligation to apply for work will be strengthened

The obligation to apply for work has been strengthened for some job seekers as of 1 January 2026. Part-time workers receiving adjusted unemployment benefits must, as a rule, apply for four jobs per month.  

• Previously, these job seekers working part-time had to apply for one job during a three-month review period.

Publishing a job search profile will become mandatory in September

• The unemployed person is obliged to publish an anonymous job search profile on the electronic Job Market as of 1 September 2026.

General social security benefit

The labour market subsidy (työmarkkinatuki) and basic unemployment allowance (peruspäiväraha) paid by Kela will be replaced by the general social security benefit (yleistuki) as of 1 May 2026. The basic unemployment allowance will be abolished and replaced by a means-tested general unemployment benefit similar to labour market subsidy. The means-tested benefit will therefore also apply to unemployed people who have met the work requirement and who are not members of an unemployment fund and receive earnings-related daily allowance.

• The general social security benefit is the same as the current labour market subsidy and basic unemployment allowance. i.e. 37,21 euros per day in 2025. There is no maximum period for the payment of general social security benefit.

Social assistance

The conditions for receiving social assistance (toimeentulotuki) will be tightened from 1 February 2026.

• In the future, those applying for social assistance will have a stronger obligation than before to apply for primary benefits instead of social assistance. Primary benefits include unemployment benefits and financial aid to students.

Changes to housing costs taken into account in social assistance

Municipality-specific limits on acceptable housing costs will be increased in some municipalities from 1 January 2026.

• If housing costs exceed the amount considered necessary in the municipality, except in certain exceptional cases, the social assistance claimant may be directed to find more affordable housing.

Maternity grant

40 euro increase in maternity grant

The government decided to increase the maternity grant by 40 euros from 170 euros to 210 euros. The increased maternity grant will be granted to those whose child’s estimated date of birth is on or after 1 April 2026.

Labour legislation

Easier to dismiss an employee

The government has changed the grounds for dismissal so that in the future, an employment contract can be terminated solely based on a proper reason instead of the previous proper and weighty reason. The revised law entered into force on 1 January 2026.

• An employee may not be dismissed before (s)he has been given a warning and an opportunity to correct his/her conduct. A minor or discriminatory reason will not be considered a valid reason for dismissal.  

In addition, the government is planning to make it easier to have fixed-term employment contracts and to remove the obligation to re-employ workers from companies and organizations that regularly employ fewer than 50 people.

Read more

Changes to Kela benefits in 2026 (Kela)

General social security benefit (Kela)

Government proposes more flexibility for fixed-term employment contracts
(Ministry of Labour)