Social security|As a result of the change, those who earn at least 27,738 euros a year will have their sickness benefits reduced.
The summary is made by artificial intelligence and checked by a human.
The government proposes cuts to the sickness allowance due to adjustment measures.
The upper limit of sickness allowance would be lowered and the compensation percentage would be reduced.
The changes would also affect the amount of rehabilitation money and handover money.
The goal of changing the calculation rule for sickness allowance is net savings of around 60 million euros.
Government present cuts to sickness allowance. Minister of Social Security Sanni Grahn-Laasonen The presentation prepared by the (kok) management is based on the adjustment measures to the state economy sought in the government program and the framework campaign.
Sickness allowance compensates for loss of earnings caused by incapacity for work lasting less than a year, and its amount is based on annual income.
Currently, the amount of sickness allowance is 70 percent of the three-hundredth of the annual income, if the annual income is no more than 35,769 euros. For the part that exceeds this, the amount of sickness allowance is 20 percent of the three-hundredth of the annual income.
Social and health Ministry announced on midsummer on Wednesday that the calculation rule for sickness allowance would be changed according to the government’s proposal so that the upper limit of the annual income entitling to the 70 percent compensation level would be reduced from the current 35,769 euros to 27,738 euros.
The changes would not apply to those whose income is below this.
In the future, for those who exceed the income limit, sickness allowance would accrue 15 percent instead of the current 20 percent. The government’s proposal is in the opinion round until mid-August.
In the table below, you can see how the model presented by the government would affect the sickness allowance.
For example A person earning 35,000 euros a year has received about 2,450 euros in sickness allowance for 30 weekdays. In the future, 2,045 euros would remain in hand after 30 business days.
On the other hand, someone who earns 60,000 euros a year has received about 2,989 euros in sickness allowance during the same period, while in the future the amount would be 2,420 euros.
Since the rehabilitation allowance, which is paid for example during a work trial, is by law at least as large as the sickness allowance, the changes would also affect the amount of the rehabilitation allowance. The same applies to donation money, which is paid to a person who suffers a loss of earnings from, for example, organ donation.
Mental health disorders have been the most common reason to receive sickness allowance. In 2023, a total of approximately 306,000 people received sickness allowance and approximately 34,000 people received partial sickness allowance, it was stated in the preparatory material for the framework meeting.
In the frame rush of spring, there was also another option on the table. Alternatively, it would have been possible to reduce the compensation rate for sickness allowance from 70% to 62% of annual income.
According to the calculations submitted by the Ministry of Finance, this option would also have been widely targeted at lower income categories, if compared to the other options presented.
Ministry of Social Affairs and Health according to the amendment to the sickness allowance calculation rule, net savings of around 60 million euros are aimed for.
The background of the government’s proposal is that a total of more than one billion euros of the new spending savings decided in the government program and the spring 2024 framework crisis will go to social security funds’ expenses financed with insurance premiums.
The laws in the opinion round are planned to enter into force on December 1, and would apply from the beginning of 2025.
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