SAK proposes increased unemployment benefits for low-income earners in Finland

The Central Organisation of Finnish Trade Unions (SAK) has proposed a new calculation model for earnings-related unemployment benefits aimed at supporting low-income earners. The proposal seeks to mitigate the impact of recent government cuts that have brought many low-income individuals' benefits close to the level of basic social assistance.

Under the proposed model, an individual earning 2,500 euros per month would see their monthly unemployment benefit increase by approximately 185 euros. In contrast, those earning 3,500 euros would see a smaller increase of 40 euros. SAK also suggests modifying the current tiered reduction system; instead of a 20% cut after two months, the reduction would be delayed until after six months, and the subsequent 5% cut after eight months would be abolished entirely.

Additional proposals include reinstating a 300 euro protection margin, adding a 100 euro child supplement per child, and reducing the work requirement for earnings-related benefits from 12 months to eight months. SAK argues these changes would be fiscally beneficial by increasing tax revenue and reducing the need for housing and social assistance. SAK leadership noted that while they recognize public finance constraints, the current safety net is insufficient to support people until they find new employment.