As of now, many people who do not have jobs would be worse off if they worked at a low-paying temporary job because they would lose their welfare payments.
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More than 10 per cent of Finland’s workforce is unemployed, rising to 22.7 per cent among younger workers. “Even once the recession is over, growth will be painfully slow”. All adults would receive the payment, regardless of whether or not they have other income coming in.
Finland will be the first major nation in the world to implement a universal basic income system, if the proposal pushes through.
Although the concept looks promising in theory, critics have warned that the idea would only lessen people’s motivation to work, but those in favor are hoping to see similar positive results as those countries where a basic national income has been implemented.
A pilot program will precede the full implementation of the system, with the citizens receiving €550 per month while some welfare benefits remain. Kela’s proposals will be submitted in November 2016.
A research conducted by Kela revealed that nearly 69 percent of the population likes the idea of a national basic income.
Juha Sipila, the Finnish prime minister, supports the idea, saying: “For me, a basic income means simplifying the social security system”.
According to Bloomberg, giving Finland’s 5.4 million people the basic income would cost the country €52 billion a year, while the government projects revenue of €49.1 billion for 2016. However, most feel that the monthly figure should be raised to €1,000.
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The parliament in Switzerland voted strongly against a motion for a basic income in September, but a referendum on the issue is planned for next year.
