Information package: Impact of the COVID-19 epidemic on benefit applications and beneficiaries

The spread of the coronavirus and the preventive measures taken against it had a financial impact on the population from the spring of 2020 to the summer of 2022. This information package contains basic information about the number of persons receiving Kela benefits during the pandemic.

The number of unemployment benefit recipients grew early on during the pandemic

The first stage of the pandemic in 2020 saw a substantial increase in the demand for unemployment benefits. In 2020, a total of 412,000 persons received unemployment benefits from Kela, 44,000 of them receiving labour market subsidies for self-employed persons.

In 2021, unemployment benefits were paid to a total of about 356,000 persons, and 32,000 of them received labour market subsidy for self-employed persons. In 2022, there were a total of 315,000 recipients of unemployment benefit. The labour market subsidy for self-employed persons was discontinued on 28 February 2022.

Including the labour market subsidy for self-employed persons, the number of recipients of unemployment benefits from Kela increased by 24 per cent from 2019 to 2020. The number of recipients of unemployment benefits decreased by 14 and 11 percent from 2020 to 2021 and from 2021 to 2022, respectively. By 2022, the number of unemployment benefit recipients was back to the pre-COVID level.

The number of recipients of basic social assistance decreased in 2021 and 2022

In both the basic social assistance and the general housing allowance schemes, the number of recipient households increased 5 percent from 2019 to 2020. While the increase was less than expected, the number of recipient households in 2020 was higher than ever this century. In 2021, the number of households receiving general housing allowance remained at the previous year’s level.

Basic social assistance was paid to 379,000 persons in 268,000 households during 2021. There were about 20,000 fewer recipient households than in 2020. The number of households receiving basic social assistance continued to decline in 2022. There were a total of 355,000 recipients in 252,000 households during 2022.

In autumn 2020, recipients of basic social assistance were paid an additional 75 euros per month as a temporary compensation due to an epidemic outbreak. This was based on a decision by the Finnish Parliament. Between October and December 2020, temporary compensation was paid to 228,000 persons in 154,000 households.

The number of recipients of the infectious disease allowance increased several times over

Infectious disease allowance was paid to 30,000 persons in 2020, compared to only 120 persons in 2019. The recipient total continued to multiply, reaching nearly 127,000 in 2021. In 2022, 385,000 persons were paid infectious disease allowance.

This is in contrast to the number of recipients of the sickness allowance, which decreased from 2019 to 2020. In 2021, sickness allowance was paid to 305,000 persons, or about 10,000 less than in 2020. The number of recipients in 2021 was roughly the same as in 2019. About 316,000 persons were paid sickness allowance in 2022. The rise in the number of sickness allowance recipients was largely due to diseases caused by the coronavirus.

Kela is responsible for basic social protection

Those who have been laid off either temporarily or permanently can apply for unemployment benefits. Members of unemployment funds can claim an earnings-related allowance from their fund. Non-members can apply to Kela for a basic unemployment allowance (provided they meet a work requirement) or a labour market subsidy. Self-employed persons were eligible for a labour market subsidy from 16 March 2020 to 30 November 2021, and again in January-February 2022.

In addition to unemployment benefits, families on a low income are eligible for general housing allowance and basic social assistance. Because basic social assistance is emergency financial aid, households must first find out if they qualify for other benefits and, as a first step, seek to secure a livelihood by other means such as using any money they may have in a bank account.

Kela pays a sickness allowance and an infectious disease allowance as compensation for loss of earnings due to an illness or exposure to an infectious disease. The sickness allowance provides compensation for loss of income during a sick leave. The infectious disease allowance is a compensation for loss of income for persons who have to stay away from their job due to having been placed in quarantine or isolation. It is also available to the guardians of children under 16 whose child is in isolation to counter the spread of infection and who therefore are prevented from working.