Kela rises various benefits due to inflation

The national social insurance institution- Kela has increased most of Kela benefits from Monday as an additional adjustment was made to the National Pensions Index due to inflation, said Kela in a press release.

The National Pensions Index applied as of 1 August following approval by the Parliament resulting 3.5% increase applies to benefits such as the national pension, disability benefits, labour market subsidy and social assistance.

Many benefits provided by Kela are tied to the National Pensions Index. The National Pensions Index is normally adjusted once a year, at the beginning of January, but now Parliament decided that an additional adjustment will be made to the index for the period 1 August to December 31, 2022.

The additional adjustment, however, does not concern all benefits. For instance child benefits are not tied to the National Pensions Index. The amounts of the general housing allowance and the housing allowance for pensioners will also not be increased because the eligibility requirements for these benefits will not change.

The study grant is adjusted against the National Pensions Index annually in August, at the start of each new academic year. This year, the study grant will be increased by 5.7% as of 1 August, because the increase will comprise both the normal adjustment and the additional index adjustment.

At present, the study grant for students aged 18 or over who are living independently is EUR 268.23 per month, previously EUR 253.69 per month.

Kela will take the new benefit amounts into account as income when making decisions on and adjusting general housing allowance and housing allowance for pensioners as of 1 August 2022. This means that if a customer receives a Kela benefit that the increase concerns, the amount of the customer’s housing allowance may decrease slightly in connection with the next adjustment.

Kela will make the next adjustment to the benefit amounts at the beginning of next year. Kela will confirm the National Pensions Index for 2023 in October, as usual.