Activation model to end in Jan 2020

The activation model for unemployment security will be abolished as of 1 January 2020.

The benefit cuts involved in the activation model will no longer affect unemployment benefits paid after 1 January 2020, said the government in an official statement.

Similarly, the Social Insurance Institution of Finland (Kela) and unemployment funds will no longer monitor jobseekers’ compliance with the activity requirements of the model from 1 January 2020 onward. Any unemployment benefit cuts made on the basis of the activation model will be removed from the beginning of 2020. However, cuts made pursuant to the activation model will affect unemployment benefits accrued in 2019 and paid out in January.

Discontinuation of the activation model will not affect the opportunities of the unemployed to study or participate in activities organised by various service providers to facilitate job seeking and access to employment. Other conditions for receiving unemployment benefits will also remain unchanged. This means that jobseekers will be required to apply for work and be prepared to accept work offered in order to receive unemployment benefit.

“The unfair activation model will be discontinued on 1 January 2020, and we will move forward with the social security reform,” said Aino-Kaisa Pekonen, Minister of Social Affairs and Health.

Following the abolishment of the activation model, amendments will be made to the Act on Financing Unemployment Benefits and to provisions of the Act on Unemployment Funds regarding central government contributions to earnings-related daily allowance. These amendments will not affect the benefits paid to unemployed jobseekers.

The Government submitted the acts for approval and the President of the Republic approved the bills on Thursday, 19 December 2019.