Finland proposes cutting unemployment benefits for migrants

Finland’s government has proposed cutting unemployment benefits for immigrants, arguing the measure would support integration, although officials acknowledge it could ultimately increase public spending.

The draft legislation, submitted to parliament on Thursday, June 4, would reduce benefits by around 10% for immigrants who have lived in Finland for less than three years, public broadcaster Yle reported. Under the proposal, affected individuals would receive approximately €77 less per month than other unemployed residents, as per Finnish media.

At the initial stage, benefits would be set at €33.64 per day, equivalent to roughly €723 per month, compared with the standard €800.

The government said full benefits could still be accessed before the three-year threshold if recipients meet employment history requirements or demonstrate sufficient proficiency in Finnish or Swedish through an examination.

The proposal is part of a broader effort to incentivise labour market integration. However, the plan has already encountered complications.

Earlier assessments indicated that the cuts, originally intended to generate savings, could instead lead to higher overall expenditure. The revised projections reflect additional costs linked to expanded access to services.

Under the bill, immigrants would become eligible for language training or employment support programmes for six months from the onset of unemployment. Providing these services carries high costs.

In the spring, authorities warned that the additional spending could reach tens of millions of euros annually. The latest estimate included in the bill suggests the reform would weaken public finances by nearly €10 million per year.

The legislation has yet to be approved by parliament and will also be reviewed by the constitutional committee.

Committee chairman Heikki Vestman said the constitution does not prohibit reducing benefits for immigrants, noting that the key issue is whether the justification for such cuts is sufficiently robust.

By Tamilla Hasanova