 Permanent
Residence - What is it?
Finnish
Residence-based Social
Security
Financial
Aid for Students
Employment-based
Social Security in Finland
Additional
Information
In Finland, social security is financed
by tax.
Statutory social security is divided into residence-based social security and employment-based social security. Most social security in Finland
is based on permanent residence,
i.e. the benefits can be claimed only by those who
live in Finland. Residence-based social security
is administered by the Social Insurance Institution
of Finland (KELA).
What is a Permanent Resident?
Throughout this site you will regularly
encounter the term "permanent resident". A permanent resident
is entitled to social security benefits from the Social
Insurance Institution, KELA, and it is often in reference to this
that the term is used.
The following description of a permanent
resident is provided by KELA:
You can be considered to be living in Finland
immediately from the day you move here if you intend to live in Finland
on a permanent basis and have a residence permit for one year or more
(if such permit is required; different provisions apply to EU and Nordic
citizens. See Work
& Residence Permits).
Whether residence is considered to be on a permanent basis or not is
determined by the purpose of your entry to Finland. If you
move to Finland as a return migrant, refugee or asylum seeker, and have
been granted a residence permit valid for at least a year, you are usually
considered to be moving to Finland permanently.
The move is also considered to be permanent if you come to Finland for
family reasons or you have either a permanent work contract, or one
for at least two years. If you move to Finland for a short period of
time you are not considered to be moving permanently, nor if you are
a student who is in Finland for the sole purpose of studying; in
these cases you would not be entitled to social security benefits.
Under special circumstances, even those with residence permits valid
for less than a year can be considered to be living in Finland provided
that there are no reasons that would preclude renewal of the permit. Such
special circumstances include family reunification and limited passport
validity (due, for example, to conditions in the bearer's home country).
Persons seeking asylum in Finland are not considered to be living in
Finland while their case is pending. If, however, they have been issued
a residence permit valid for at least a year, they are considered to be
living in Finland from the date the permit was issued. Quota refugees
are considered to be living in Finland starting immediately from when
they actually move to Finland.
Persons moving to Finland must register at a population register office
(more information).
In order to qualify for benefits from KELA, you must also register
in a KELA office and complete the application form (more
information and online application).
You will then receive a written decision on whether or not you are covered
by the Finnish residence-based social security system. If the application
is accepted, you will receive a personal KELA card. If it is not accepted
it can be appealed by following the instructions included.
Finnish
Residence-based Social Security
If you are a permanent resident in
Finland you are entitled to social security provided by the
Social Insurance Institution, KELA.
A KELA card, entitling the owner to coverage
under the Finnish residence-based social security scheme
must be applied for from KELA.
The application should be submitted to the
applicant’s KELA office in his or her home municipality.
The applicant will then be given a written decision on the
matter, which can be appealed. If the decision is positive
a KELA card will also be sent to the applicant. Individual
benefits may be applied for by using separate forms.
Finnish Social Security
Benefits
If a person is regarded as a permanent resident they
are entitled to apply for the following KELA benefits in
the same way as Finns:
- family allowance
- student
financial aid
- maternity allowance
- sickness allowance
- cash benefits for parents
- reimbursement of medical expenses
- unemployment benefit / allowance (non-earnings related)
- labour market subsidy
- child care subsidies
- disability allowance
- rehabilitation and rehabilitation allowance
- national pension (non-earnings related)
- family pension (non-earnings related)
- pensioner’s housing allowance
- general housing allowance
- private day-care and child home care allowance
- school transportation subsidy
See Additional
Information for more...
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Student Allowance / Financial
Aid
(Source: Financial Aid for Students at
the KELA
web site)
Student financial aid is intended to provide
an income to financially needy students whose parents are
not under obligation to finance their studies and who are
not eligible for aid under some other provisions. In order
to qualify, you must be a full-time student, make satisfactory
academic progress, and be in need of financial assistance.
Financial aid is available in the form of
study grants, housing supplements and government guarantees
for student loans. Study grant and housing supplement are
government-financed benefits with monthly payments to the
student´s bank. The study grant is subject to tax.
If you are granted a government loan guarantee, you can apply
for a student loan with a bank of your choice. The bank will
contact KELA to check the loan guarantee details.
Foreign
students (see also Centre
for International Mobility)
Non-citizens of Finland can get financial aid for studies
in Finland if they live in Finland on a permanent basis for
a purpose other than studying. This requires that they are
registered as a permanent resident in the Finnish population
register system. The purpose of residence in Finland is determined
by reference to such matters as the residence permit, registration
or acceptance to an educational institution. Applications
for financial aid must be accompanied by the appendix form
OT10 for foreign residents.
If you come to Finland solely for the
purpose of studying, you cannot get Finnish student financial
aid.
Employment-based
Social Security in Finland
Social security based on employment includes
earnings-related unemployment allowance, accident insurance
and security against occupational accidents and illnesses.
Private insurance companies and the Finnish Centre for Pensions
deal with matters related to employment-based social security.
Earnings-related Unemployment
Allowance
The unemployment funds operated by trade
unions pay an unemployment allowance for their unemployed
members. The amount of the allowance is determined by your
salary before unemployment and is usually higher than the
unemployment allowance provided by KELA. You can receive
an earnings-related allowance for about two years. The requirement
is that you have joined the unemployment fund at least ten
months before the termination of your employment and have
paid your membership fees. Because of this, you should immediately
find out which unemployment fund you can join after finding
a job.
See also: Trade
Unions
Earnings-related
Pensions
The
Finnish Centre for Pensions is the central body of
the Finnish statutory earnings-related pension scheme.
Pension insurance is an obligation for both employers and
entrepreneurs.
The employer is liable to take out insurance
for all his employees and to pay the insurance contributions
to an authorised pension provider* on behalf of the employee.
In practice, the employer takes care of the insurance and,
in addition to taxes, takes the pension fees straight out
of the employee’s salary. The length of the employment
contract has no significance. The obligation to take out
insurance also concerns private households when they act
as employers.
*Authorised pension providers are either insurance
companies, company pension funds, industry-wide pension funds
or other similar pension funds.
Salaried employees are covered by the occupational
pension system, and farmers and entrepreneurs are covered
by their own employee pension systems. Both pension systems
include old-age pension, disability pension, individual early-retirement
pension and unemployment pension. Your profession and type
of employment define which pension law is applied.
A self-employed person should take out insurance himself
or herself. The obligation to take out insurance starts when
the self-employment has continued for four months. The self-employed
person’s insurance contributions are based on the confirmed
income from self-employment and not for instance on the company’s
turnover. More information on self–employed person's insurance
Visit: The
Finnish Centre for Pensions (Eläketurvakeskus)
Additional Social Security
Information:
- Comprehensive information on all residence-based
benefits is available in English, Finnish & Swedish
at the Social Insurance Institution of Finland's
web site: KELA
- A detailed overview of
social security benefits is available in the KELA PDF
Guide
To Benefits - 2009
- Most KELA forms are available
in English at the
KELA site,
and can be downloaded OR used online. This includes an
application for a KELA card.
- Expat Finland's Healthcare page
provides additional information on social and health services
- The web site of the Ministry of Social Affairs & Health provides
great detail on Finland's welfare state policy
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