how social security has built finland

How social security has built Finland

A double anniversary

• Kela is currently celebrating a double anniversary: Finland turns 100

and Kela 80 years. To honor this, our researchers took a vote on the

most important social security reforms in Finland.

• In a video series, we present these 10 reforms and reflect on how they

have contributed to Finnish society.

2

1. Ground-breaking idea: everyone has the right to receive help

• The 1922 Poor Relief Act required municipalities to help those in

trouble. It became the foundation for a new kind of social security.

• https://youtu.be/pIlfIAp90j8

3

2. The national pension took the elderly out of poverty

• In 1937, the National Pensions Act gave all Finns the right to a pension.

About twenty years later, pensions were considerably increased.

Without these reforms, the elderly in Finland would be more unequal,

poorer, and dependent on the good will of their relatives.

• https://youtu.be/erahU-jhuRE

4

3. Maternity grants brought mothers to maternity clinics

• In today’s Finland, it seems clear that expectant mothers seek prenatal

care. Even just 80 years ago, this was not the case. Then an effective

means was found: maternity grants, which required visits to the doctor

or midwife. Maternity grants came into use in 1938.

• https://youtu.be/vaHVyoEc-1I

5

4. Support for all families with children

• After the war, there was a boom of children being born in Finland. The

Parliament of Finland unanimously decided that families with children

needed support. Since 1948, all families with children have received

child benefits. It evens out the costs between families with children and

other households.

• https://youtu.be/W9bylYuxzUg

6

5. A healthier and more equal in Finland

• Before health insurance in 1964, illness meant poverty for a lot of

Finnish people. Not everyone could afford healthcare and medicine,

and a workplace-based insurance system was very unequal. Health

insurance has contributed to the equality and health of Finns.

• https://youtu.be/CHoqxIMVO1w

7

6. Health services conveniently from one place

• In 1972, the Primary Health Care Act significantly changed Finnish

health care. It required municipalities to take care of primary health

care and bring affordable medical services to everyone. All

municipalities had to set up a local health center.

• https://youtu.be/9S6EGwrUe9E

8

7. Everyone has the opportunity to study

• Since 1969, Finnish students have received a state-guaranteed student

loan. Since 1972, they have also received grants that do not have to be

repaid. The purpose of student financial aid is to secure opportunities

for students from different backgrounds to study, since education is

also an asset for society.

• https://youtu.be/2FlpUH_k5TE

9

8. Local day care facilitates women’s employment

• Since 1973, municipalities have provided an affordable place for

children to be cared for during the working days of their parents. At the

same time, the child receives high-quality early childhood education.

• https://youtu.be/CU6vIQN9KDw

10

9. Basic social assistance consistent across the country

• Social assistance can be received if one’s income is otherwise

insufficient for living. At the beginning of 2017, basic social assistance

was transferred from the municipalities to Kela to ensure that

customers are treated equally regardless of their place of residence

and to lower the barriers for seeking support.

• https://youtu.be/HxIc-akG_kw

11

10. Simpler and more supportive social security?

• Finland’s social security system is complex and it cannot always meet

today’s needs. Therefore, a basic income experiment is underway in

Finland from 2017–2018 that offers research data, which can be used

to reform social security.

• https://youtu.be/ajClpuHSSmY

12