Kela, the Social Insurance Institution of Finland has approved the score of the national pension index for the year 2021, according to which the large part of benefits paid by Kela will be increased by 0,4% next year. The index revision will increase Kela's benefit expenses by an estimated EUR 24 million in 2021.
A large part of the benefits paid by Kela is reviewed annually according to the national pension index. In addition to the national pension, the revision covers the guarantee pension, survivor's pension, front-veteran's supplement, basic military allowance, disability allowance, basic unemployment allowance and labor market subsidy, child benefits, child care allowances and minimum rate sickness allowance.
The most of Kela's benefits are linked with the national pension index, that follows the cost of living index, which Statistics Finland calculates on the basis of price data for key commodities. Thus, the purchasing power of benefits is maintained in the case of price changes.
As a result of the index adjustment, for example, the full monthly national pension in Finland increases from EUR 662,86 to EUR 665,29, the full amount of the guarantee pension increases from EUR 834,52 to EUR 837,59.
In addition, for example, the child home care allowance for one child under the age of 3 increases from EUR 341,69 per month to EUR 342,95 and the amount of basic unemployment allowance and labor market subsidy will be increased from EUR 33,66 per day to EUR 33,78.
The full information and the source text can be found at KELA website.
Published 15.10.2020