Mar 4 • 04:00 UTC 🇫🇮 Finland Yle Uutiset

Kela paid significantly less sick leave compensation last year

The Finnish social insurance institution Kela reduced its sick leave compensation costs significantly last year due to cuts made at the beginning of 2025.

In 2025, Kela, Finland's social insurance institution, reported a notable decrease in sick leave compensation payments, which dropped by nine percent compared to the previous year when adjusted for inflation. According to Kela's research professor, Jenni Blomgren, this reduction is primarily attributed to cuts implemented at the start of 2025. The total payments amounted to 848 million euros for sick leave compensation and 79 million euros for partial sick leave compensation, reflecting a real decline of 87 million euros in expenses.

The decrease in costs is explained by the cuts to sick leave and partial sick leave benefits introduced earlier in the year. Kela also noted a reduction in the number of compensated sick leave days, a factor that has significantly impacted overall expenses. Blomgren mentioned that while the cuts have led to lower compensation costs, there has yet to be a detailed study on how these changes might affect the duration of sick leave benefits.

This significant reduction in sick leave compensation highlights ongoing cost-containment measures within Finland's social welfare system. It raises questions on how such policies might influence the health and financial stability of those relying on these benefits, particularly during times of economic strains such as inflationary periods. As changes in social welfare continue to evolve, further investigation may be needed to assess the long-term implications of these cuts on Finnish society and its workforce.

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