In 2024, the government will cut social security and try to push through cuts to employment conditions – see the list of changes

The government is cutting unemployment and other social security and plans significant cuts to employment conditions. Many of the government’s cuts to social security came into force at the beginning of the year on 1 January 2024. At the turn of the year, the number of waiting period days for unemployment benefit was increased from five to seven, and the periodisation of holiday compensation will delay the start of unemployment benefit payments.

In addition, most of the benefits paid by Kela will not be indexed between 2024 and 2027, which means a significant cut in benefits in coming years. Index freezing will also affect the basic component of earnings-related unemployment benefit.

In the autumn, the government is aiming to bring in changes including a staggering of earnings-related unemployment benefits. This would be implemented by cutting earnings-related allowance by 20 per cent after two months of unemployment. The government also plans to double the length of the work requirement. See detailed list of all legislative changes to unemployment security

Cuts to child increases and housing allowances to come into force in April

The changes coming into force at the beginning of April will particularly affect part-time and casual workers when the 300 euro protected amount of adjusted unemployment benefit and the protected amount of housing allowance will be removed. Other cuts to housing allowance will also come into force at the same time.

Unemployed persons with family will lose their child increases to unemployment benefit from 1 April 2024 onwards. Until the end of March, the amount of the child increase is between 130 and 240 euros a month, depending on the number of children.

Child benefit increased by 10 euros a month from the beginning of the year, starting from the fourth child. The single-parent supplement will also rise by 10 euros a month. In April, child benefit for children under 3 will be increased by 26 euros a month.

Earned income taxation to ease slightly – commuting deduction to be cut

Earned income taxation will ease slightly: for those earning 2,400 euros a month, taxation will ease by 210 euros a year. The biggest change in the tax rate affects those earning 12,000 euros a month – their taxation will go down by 1,800 euros a year.

The threshold for commuting expenses will increase to 900 euros and temporary increases will no longer be in effect. For those travelling long distances to work, the maximum amount of the commuting deduction will also be reduced from 8,400 to 7,000 euros.

Changes to employment legislation are planned

There were no changes to employment legislation from the beginning of the year. However, the Orpo-Purra government aims to bring in several changes to the law in future that, if implemented, would significantly weaken the employment conditions and position of workers.

Among other things, the government aims to limit the right to strike, make dismissals easier, bring in a waiting period for the first day of sick leave, make fixed-term contracts easier and shorten the notice period for lay-offs. The aim is to limit the right to strike before other cuts to employment conditions.

PAM opposes the planned unilateral cuts to workers’ employment conditions. PAM has been actively involved in the Serious Grounds actions organised by SAK and its member unions to oppose the cuts throughout last autumn and the end of the year.

You can find a comprehensive package of the changes to unemployment benefits, social security, education and taxation on the SAK website in Finnish .

Text: Pauli Unkuri