Kela’s basic daily allowance and labour market subsidy for unemployed jobseekers will be replaced by the new general social security benefit from 1 May 2026. From May, partial old-age pension will be taken into account as income in the assessment of the need for the general social security benefit. This means that partial old-age pension may reduce the amount of the general social security benefit.
Partial old-age pension has not affected the amount of earnings-related unemployment allowance and will not affect it in the future, either.
The change also applies to those already receiving partial old-age pension
If you receive partial old-age pension and you become a recipient of the general social security benefit on 1 May 2026, a possible means-testing of the general social security benefit will be carried out at that time.
The Finnish Centre for Pensions (ETK) estimates that approximately a few thousand people receive either Kela’s basic daily allowance or labour market subsidy and partial old-age pension, the amount of which exceeds the means-testing income limit. The estimate is based on statistics for 2024.
Partial old-age pension continues until you retire or are granted disability pension. Partial old-age pension cannot be cancelled or suspended. However, you can cancel your pension within three months of it being granted.
What should I do if I am receiving or considering partial old-age pension?
If you receive partial old-age pension from Varma, the payments will continue as normal after 1 May and the amount will not change.
- If you receive Kela’s basic daily allowance or labour market subsidy and a partial old-age pension from Varma, contact Kela if you want information on whether the pension affects your future general social security benefit.
- If you are receiving basic daily allowance or labour market subsidy and are considering applying for partial old-age pension, estimate the amount of your pension in Varma Online Services. This way, you can find out in advance whether your pension amount exceeds the income limit for the general social security benefit (EUR 311/month).
How does partial old-age pension affect the general social security benefit?
The amount of the general social security benefit is the same as the amount of labour market subsidy and basic daily allowance, i.e. EUR 37.21 per day (EUR 800 per month on average) in 2026. However, the means-testing may reduce the benefit.
Means-testing is used if the capital income and non-wage income of the person applying for the general social security benefit, including partial old-age pension, exceed the means-testing income limit of EUR 311 per month (gross) of the general social security benefit. One-half (50 per cent) of the income exceeding the income limit is deducted from the general social security benefit.
Example calculated by ETK:
- A person receives partial old-age pension of EUR 411 per month.
- The portion exceeding the income limit is EUR 100 (EUR 411 - EUR 311 = EUR 100).
- One-half of this amount, EUR 50, is deducted from the general social security benefit.
- The amount of the general social security benefit is EUR 750 (EUR 800 - EUR 50 = EUR 750).
Additional information
Read more in ETK's news
Information about the general social security benefit on Kela’s website
Kela's customer service