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Social Security in Finland

Understanding benefits, entitlements, and responsibilities as a resident or entrepreneur.

Social Security System Overview

Finland's social security system provides a strong safety net for residents through Kela, the Social Insurance Institution. Kela offers benefits such as health reimbursements, family aid, housing support, and unemployment security. However, if you're self-employed, you also need to manage your own pension and social protection through YEL insurance, which is legally required and not handled by Kela. Understanding how these systems work together—and where their responsibilities end—is key to accessing your full entitlements.

Comprehensive benefits through Kela
Mandatory YEL insurance for entrepreneurs
Family support and healthcare coverage

Health Insurance and the Kela Card

When you register in Finland and become eligible for residence-based social security, you can apply for a Kela card. The card simplifies appointments and billing at pharmacies, public health centers, and private clinics offering Kela-covered services.

Pays part of private doctor fees (you pay first, apply for reimbursement)
Subsidizes prescription medicines
Covers part of travel costs for medical reasons
Supports use of medical equipment and therapy
Apply for your Kela card to simplify reimbursements and pharmacy visits

Family Benefits

Kela offers robust family support regardless of nationality, as long as you're covered by the Finnish social security system.

Parental allowance: paid leave for parents - more info
Child benefit: monthly allowance until your child turns 17 - more info
Home care allowance: for parents staying at home with children under 3 - more info
Adoption support and special care allowance for children with serious illness - adoption / special care
These payments are not automatic—you must apply through Kela's system

YEL Insurance for Entrepreneurs

If you're self-employed in Finland, you must arrange your own pension insurance under the Self-Employed Persons' Pensions Act (YEL). This is not handled by Kela, but by private pension insurance providers (known as TyEL companies).

Required if you're 18–67 years old and your self-employed income estimate is over €9,010 (2025 threshold)
Must run your business for at least 4 months
Covers your future pension, parental leave income, daily sickness allowance, unemployment coverage, and rehabilitation services
YEL is income-based and linked to earned entrepreneurial income, which must be tracked and reported to the pension system, not Kela
Authorized YEL providers include Elo, Ilmarinen, Varma, and Veritas
More information: YEL pension insurance

Other Social Security Benefits

Kela also provides access to additional support through the Finnish system.

Student financial aid - more info
Unemployment assistance for those not in an unemployment fund - more info
Disability benefits - more info
Rehabilitation programs - more info
Housing benefits for students and low-income residents - more info
Tip: If you are unemployed, also check if you're eligible for earnings-based support through an unemployment fund

Practical Steps and Considerations

Essential steps and factors to consider for maximizing your social security benefits in Finland.

Register your address and residence with the DVV (Digital and Population Data Services Agency)
Apply to Kela as soon as you receive a residence permit (not automatic)
Get your Kela card to simplify reimbursements and pharmacy visits
Keep Kela updated with changes in income, address, family status
Apply early for benefits—many are not backdated
If self-employed, calculate your YEL income carefully and sign up with a YEL provider
Keep all receipts for medical or private care expenses for reimbursement claims