Changes to social assistance: new requirements and stricter criteria as of February
Parliament has passed an amendment to the Act on Social Assistance imposing stricter requirements and criteria for receiving the benefit. The reform will require customers to apply for benefits that are primary in relation to social assistance and to register as jobseekers looking for full-time work. Customers who fail to comply risk having their basic amount reduced. As a consequence of the reform, the basic amount of social assistance will be cut by 2–3% for all adult recipients aged 18 or over and the earned-income deduction of EUR 150 will be abolished. The new amendment also affects payment of the part of social assistance earmarked for rent.
Parliament has passed an amendment concerning social assistance, which will enter into force on 1 February 2026. The goal of the social assistance reform is to impose stricter requirements for the benefit and to emphasise the status of social assistance as a last-resort benefit.
The purpose of social assistance is to ensure a minimum income when the customer’s other benefits, income and assets are not enough. According to the government proposal, the present system does not provide sufficient incentive to customers to apply for benefits that are primary in relation to social assistance or to register as jobseekers looking for full-time work. The reform is designed to reinforce incentives and to reduce long-term reliance on social assistance.
At the same time, the reform also seeks to improve the employment rate and boost public finances. The goal is for the reform to help reduce social assistance expenditure by EUR 70 million.
How will social assistance change?
The reform will bring a number of changes, both in terms of the requirements placed on customers and in terms of Kela’s operations.
Neglecting to apply for benefits that take precedence over social assistance will become grounds for reducing the basic amount included in social assistance. The basic amount can be reduced by 50% if the customer does not apply within one month for the primary benefits they are likely entitled to despite being told to do so.
Failure to apply for full-time work. If a customer does not register as a jobseeker looking for full-time work with the employment services within one month despite being told to do so, Kela can reduce the basic amount of their social assistance by 50%.
Loss or reduction of unemployment benefits due to the customer’s own actions can lead to a reduction of the basic amount (for instance, if a mandatory waiting period or an obligation to work is imposed, including an obligation that applies to persons under 25). The reduction is 20% in the first month and then 40%. In other words, sanctions imposed on unemployment benefits are no longer fully compensated in the form of social assistance. Customers should also note that stricter criteria leading to mandatory waiting periods will be applied to unemployment benefits from the beginning of 2026.
Failure to comply with the integration plan can lead to a 20% reduction of the basic amount.
The basic amount will be reduced for all customers aged 18 or over as of 1 March 2026. The basic amount of persons living alone or living with their parents will be cut by 3% and the basic amount of other customers aged 18 or over by 2%. For example, if you live alone, your basic amount will be about EUR 18 per month less than before.
The earned-income deduction (EUR 150 per month) will be abolished for all customers aged 18 or over. This means that the full amount of the customer’s earned income (wages or salary) will be taken into account in the calculation of their benefit. However, the earned income allowance of EUR 150 will continue to apply to the fees payable to informal caregivers and family carers until the end of 2027.
Financial assistance received by customers aged 18 and over will be taken into account in full. Until now, smaller amounts of financial assistance have not been taken into account in the calculation of social assistance. The limit for such sums has been EUR 50 per month for persons living alone and EUR 100 per month for a family.
There will be changes to the housing costs recognised under the social assistance scheme. As a consequence, the maximum recognised housing costs may decrease. This legislative amendment will enter into force on 1 January 2027.
How does the change affect Kela’s customers?
The biggest change for Kela’s customers concerns the reduction of the basic amount of social assistance. Customers will have to register with the employment services as jobseekers looking for full-time work, maintain their jobseeker status and apply for benefits that are primary in relation to social assistance.
Since November, Kela has provided information to customers about the upcoming change and directed them to find out which primary benefits they are entitled to, so that as many customers as possible apply for other benefits in time and avoid having their basic amount reduced.
Another significant change that the reform introduces focuses on the way a customer’s income is taken into account. The earned-income deduction will be abolished for all customers aged 18 or over. The deduction has been EUR 150 per month. In addition, even small amounts of financial assistance will affect the amount of social assistance granted to customers aged 18 or over. Until now, smaller amounts of financial assistance have not been taken into account in the calculation of social assistance. The limit for such sums has been EUR 50 per month for persons living alone and EUR 100 per month for a family.
A third significant change allows Kela to pay the part of social assistance that is earmarked for rent directly to the landlord. This change applies to all customers to whom Kela has granted a rental security deposit for their current home as part of social assistance.
After the amendment has entered into force on 1 February 2026, Kela will start sending customers requests to register as a jobseeker looking for full-time work and to apply for unemployment benefits or other benefits that the customer may be entitled to. Reductions of the basic amount under the amended law can be made from the end of March to customers who do not comply.
The basic amount will be reduced by 2–3% for all customers aged 18 or over as of 1 March 2026.