Financial cushion in Finland

If you’re planning to move to Finland or you’ve recently relocated, one practical question always comes up:

There’s no fixed rule, but many financial advisors recommend having 6-8 months’ worth of living expenses saved before a major relocation. In Finland, costs such as housing, transport, groceries and healthcare are generally predictable and well-organized but they can be higher than in many other countries, especially in urban areas like Helsinki or Tampere.

Finland’s unemployment support is part of its broader social security system. There are three main forms of unemployment benefit:

→ Earnings-related daily allowance, based on your previous salary and paid through an unemployment fund.

→ Basic unemployment allowance, paid by the social security institution (Kela) if you haven’t been in a fund long enough.

→ Labour market subsidy, for those who don’t qualify for the other two but are registered as jobseekers.

If you earn while receiving support, the benefit is reduced.

Starting May 1st, 2026, a new General Social Security Benefit (yleistuki) will replace the current basic unemployment allowance and labour market subsidy paid by Kela. Parliament has already approved this reform.

What does this mean in simple terms?

✔︎ The base level remains about €37.21 per day (~€800/month in 2026).

✔︎ If you earn income from part-time work, 50% of your gross salary will reduce the benefit.

✔︎ Capital income (for example, dividends or rental income) above €311/month will also reduce it by 50% of the excess.

✔︎ Your savings, apartment, car or bank balance do not affect the amount.

✔︎ Your partner’s income does not affect it either.

✔︎ If you live with your parents, their income may influence the payment.

✔︎ If you already receive Kela unemployment benefits in May 2026, you will be transferred automatically.