In addition to the basic child support, one of the parents (or the single parent) of young children can choose to stay home to provide childcare and receive $300 per month base "pay." For each child under four an additional $100 per month is paid; for each child between three and the beginning of school (usually seven) the amount is $60 a month. For less affluent or poor families, there is an additional payment of up to $200 per month depending on family size and income.
31
For parents who choose to return to work, the state provides
childcare for a charge of $200 a month for the first child, $200 a month for the second child and $40 a month for each additional child. This charge is reduced for low-income families and is free for families with an income less than $12,000 per year.
Unemployment insurance benefits are about the same amount as in the US (approximately half of the previous salary), but an unemployed worker can receive those benefits for up to two years, compared to six months in the United States.
All Finns, regardless of income, are also eligible for
education allowances for almost any kind of adult education: regular university, vocational or job training, continuing job-related education, retraining for a new profession and so forth. Tuition is free. Students (including full-time adult students) also receive living support ($300 a month) and rent support (2/3 of monthly rent up to a maximum of $170 per month).
Retirement benefits are handled much as in the United States, with a combination of private retirement funds (through employers) and public social security benefits. They would be considered generous by American standards. (For example, my father-in-law, a professor at a state teachers' college, received a pension that was greater than the salary of the person who replaced him.)
In addition to these benefits, which are available to everyone regardless of income, there are two programs specifically for the poor. The first is
rent assistance, which may be as much as 80% of monthly rent, depending on income and cost of rent. Renters can choose housing wherever they can find it (thus avoiding the economic ghettoization common in the United States). Also, the names of those receiving such assistance are not public knowledge, thus avoiding any public stigma.
Finally, there is a
catch-all benefit that state social workers can give to people who still fall through the cracks. The amount one should need to live on is determined by a schedule that factors in family size, cost of living in the area, and any special needs.
32 If all of one's income, including allowances and supports, is less than the determined amount, the social worker is allowed, on a case-by-case basis, to give an extra allowance to bring one up to that level, which is generous by American standards. A single mother with two children who rented an apartment for $500 a month would be considered to need at least $17,600, (compared to our poverty level of $13,650 for a family of three). A single person with a rent of $350 a month would need $9,000 per year (compared to our poverty level of $8,050). Unlike the other entitlements, these catch-all allowances are managed individually by an assigned social worker to make sure that funds are being used appropriately.
33 If other special needs do develop, one can return to the social worker and apply for additional assistance.
Footnotes
31 A single mother with one child under the age of three and another between three and seven would, therefore, receive $660 a month for staying home and taking care of the children, making a total of $1,220 per month from the state.
32 Buying work tools, additional childcare, moving or funerals are examples of special needs.
33 If an unemployed person refuses an appropriate job offer, for instance, this support can be reduced by 20% for several months. If that person refuses another job in the same time period, the support can be reduced 40%. The reduction lasts only several months, however.
