Youths´ rehabilitation allowance to reduce by 13% from January

The rehabilitation allowance for young persons and the allowance payable during vocational rehabilitation will be deceased by about 13 percent from the beginning of next year, said the Social Insurance Institution-Kela in a press release on Monday.

As of the beginning of 2024, all rehabilitation allowances will be determined on the basis of the same criteria irrespective of the type of rehabilitation.

Parliament approved a legislative amendment that harmonises the grounds for determining rehabilitation allowance.

From January 1, 2024, the minimum rates of the rehabilitation allowance for young persons and the allowance paid during vocational rehabilitation will be reduced to the level of the regular rehabilitation allowance, 31.99 euros per working day.

The minimum allowance rate applies to individuals who have little or no income.

In future, the amount of rehabilitation allowance will be determined on the same grounds regardless of the type of rehabilitation, even in cases where the amount of rehabilitation allowance is higher than the minimum amount.

These changes will apply to rehabilitation allowance granted for rehabilitation which begins on or after 1 January 2024.

If rehabilitation has started before 1 January 2024, the rehabilitation allowance will continue to be paid in accordance with the rehabilitation allowance decision previously given to the client.

In 2022, a total of 51,900 persons received rehabilitation allowances. About 15,100 of them received rehabilitation allowance for young persons, while about 21,500 received rehabilitation allowance during vocational rehabilitation.

Kela paid a total of 243 million euros in regular rehabilitation allowances and 125 million euros in rehabilitation allowances for young persons.

According to the Government's calculations, the proposed changes will reduce Kela’s benefit expenditure by 27 million euros.

Earlier, the four-party right-wing alliance government led by Kansallinen Kokoomus (National Coalition Party-NCP) has taken measures to stiffen various benefits as a part of its austerity programme.