Stricter sanctions for unemployment benefits seekers from March

A new law will allow employment services to impose sanction of a mandatory waiting period on an unemployed person after just one failure to look for work or participate in employment services.

In addition, the Social Insurance Institution-Kela may reduce the basic amount of social assistance as a consequence of a mandatory waiting period, said Kela in a press release on Wednesday.

The new legislative amendment will enter into force on March 1, 2026.

Parliament has passed legislation introducing stricter rules concerning mandatory waiting periods (karenssi) for unemployment benefits and a reform of social assistance.

Mandatory waiting periods (karenssi) are periods of time during which an unemployed person is not paid any unemployment benefits.

Employment services may impose a mandatory waiting period or obligation to work on an unemployed person who has failed to fulfil their obligation to seek work or participate in employment services as agreed.

Such an infraction can be, for example, if the unemployed person does not participate in a scheduled meeting with employment services.

Employment services do not and in the future will not impose a mandatory waiting period or an obligation to work on an unemployed person who can give an acceptable reason for their behaviour.

In future, unemployed persons can lose their unemployment benefits after just one failure to apply for work or participate in employment services.

Employment services will start imposing a 7-day mandatory waiting period on unemployed persons for a first infraction such as not applying for work or not participating in employment services.

A second infraction will result in a 6-week obligation to work. An obligation to work means that the applicants can get unemployment benefits only after they have fulfilled obligation to work by either working or participating in employment-promoting services for at least 6 weeks.

Currently, employment services will just send the unemployed person a reminder for the first infraction. A 7-day mandatory waiting period is imposed for the second infraction, a 14-day mandatory waiting period for the third infraction and a 12-week obligation to work for the fourth infraction. If an unemployed person loses unemployment benefits because a mandatory waiting period or obligation to work is imposed on her or him, the person cans apply for benefits such as general housing allowance or social assistance.

However, from March 1, Kela may reduce the basic amount of social assistance for unemployed persons who are subject to a mandatory waiting period or obligation to work.

For example, a 7-day mandatory waiting period could lead to a 20% reduction of the basic amount of social assistance for one month. If the grounds for reducing the basic amount continue for more than one month, the basic amount can be reduced by 40% for the following months.

The amendment concerning reductions of the basic amount of social assistance will enter into force on 1 February 2026.

Earlier in May, 2025 the government took the initiative to tighten social assistance.

In April 2024, the government cut unemployment, housing, other benefits.