Finland First Country to Introduce Basic Income for Unemployed (Download PDF)

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Finland becomes the first country in the world to pay a basic monthly income to unemployed citizens. The move is an effort on the part of the country’s government to reduce poverty and boost employment.  The basic monthly income will amount to about €560.

Image of Finland - Currency

Image of Finland - Currency

Image of Finland - Currency

Highlights

  • The initiative has been introduced on a two-year trial.
  • It will benefit around 2000 randomly picked citizens.
  • The chosen citizens will receive an amount of €560 each month.
  • The amount can spend in any way they wish without being answerable to the authority.
  • Selected citizens will continue to receive the money even after getting a job.
  • Average private sector income in Finland is €3,500 per month.

About Trial Scheme

  • The scheme is part of the measures by the centre-Right government of Prime Minister Juha Sipila to tackle Finland’s joblessness problem.
  • The main aim of the scheme is to abolish the lack of encouragement faced by many of the unemployed.
  • It aims to discourage people’s fear of losing out on something.
  • Currently, a jobless person may refuse a low-salaried job fearing that it would massively reduce his financial benefits that are provided under Finland’s social security system.
  • The unemployment rate in Finland stands at 8.1 per cent.
  • As of November 2016 with around 213000 people being without a job for over a year.
  • The total population of the country is 5.5 million.
Location of  Finland in world

Location of Finland in World

Location of Finland in world

About Finland

  • Finland is a Northern European nation bordering Sweden, Norway and Russia.
  • Its capital, Helsinki, occupies a peninsula and surrounding islands in the Baltic Sea.
  • Capital: Helsinki
  • Dialing code: +358
  • Currency: Euro
  • Population: 5.439 million
  • Official languages: Finnish, Swedish

- Published/Last Modified on: January 5, 2017

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