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[POLITICS] · Finland · 4 sources

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Kela analyzes impact of replacing home care allowance

The Social Insurance Institution of Finland (Kela) has modeled the effects of replacing the current home care allowance with a system that extends parental leave by three months for each parent.

According to Kela researcher Tapio Räsänen, the new model would benefit families with shorter care periods. Families caring for a child until the age of one year and nine months could receive more total support than under the current system. For example, a dual-income family starting early childhood education when the child is 18 months old could receive up to 1,000 euros more, provided both parents use their additional three-month quotas.

However, the model acts as an incentive for shorter home care periods. Families who continue home care until the child is three years old could lose over 5,000 euros in total support compared to the current model. The calculations do not include potential municipal supplements to the home care allowance.

Entities

Finland · KELA · Ministry of Finance · National Coalition Party · Tapio Räsänen

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