Rationale of the Basic Income Trial

In 2017, Finland launched a two-year basic income experiment. The purpose of the trial is to see if a basic income can help to boost employment. Two minutes and 21 seconds in length.

In Finland, income security is guaranteed to everyone. While the present social security system is the result of decades of development work, its basis was laid down in a very different world from ours. For this reason, a new social security model will be tried in Finland.

A unique basic income experiment was launched in Finland in 2017. The aim of the experiment is to determine whether the social security system can be simplified and provide a stronger incentive for finding employment. At present, finding a job does not necessarily increase the income of an unemployed person because earnings lower their social benefits.

2000 random participants were chosen for the basic income experiment from among unemployed persons between the ages of 25 and 58. Kela has notified the participants of their selection and individual citizens are not eligible to apply for basic income outside of this experimental group.

During the experiments, the participants receive a basic monthly income of 560 euros. For example, should the unemployment benefit of the participant be higher than the basic income, the participant can apply for the exceeding amount from Kela. The basic income is a tax-free benefit and will not be reduced by any other income the participant may have. So, if the participant finds a job during the experiment, he or she will get both the salary and the basic income.

The experiment will run for two years and the employment situation of the participants will be monitored throughout the experiment, which will examine the question: Could basic income increase employment and simplify the social security system? Kela will be responsible for implementing the experiment.