1GOALS OF A WELFARE STATEDiminish povertyMaintain social equalityPromote social integrationPromote social stabilityPromote automomyPromote economic effectiveness

2Case Study – Social Security in FinlandHigh income familyBoth parents are workingThe first child is 2 years old and has a private day

care placeMother is pregnant and twins are about to be born

in a couple of weeks.

3Family Background

Boris and Natasha Badenov are Russian immigrants who live in Vuosaari.  They are permanently resident in Finland, lived in Finland since 2008. Boris is 34 years old and Natasha is 35 years old. They have a 2 year-old daughter named Marina who attends the private

Russian daycare Ogonjok in Vuosaari. Natasha is 38 weeks pregnant. She is due to have twins in two weeks. Boris works as an engineer at Planmeca. His salary is 9,938€/month (gross). Natasha is an entrepreneur, she owns a boutique in Forum. Her salary is

6,751€/month (gross). The family lives in a block of flats, apartment is 120 sq.m and the rent is

1,900€.

4Maternity Grant ( äitiysavustus ) Maternity Grant is not income-related and it is tax-free. Can be awarded to persons who are permanently resident in Finland and are covered by

the Finnish social security system. Must be claimed no later than two months before the expected date of birth of the child. You can choose between a maternity package and a tax-free cash benefit of €140. Package will be sent within about two weeks of the award decision, cash money will be

paid into bank account. Multiple-birth families get additional maternity grants. If you give birth to two or more

children at the same time, you will get the normal maternity grant multiplied by two for your second child, the normal maternity grant multiplied by three for your third child, etc. This means that for twins, you will receive three times the maternity grant, for triplets, six times the maternity grant, etc.

Applicant can choose how to take out each maternity grant: in cash or as a maternity package, in whatever combination you want. For example, if you give birth to twins, you can choose to have two maternity packages and one cash payment of €140.Source: http://www.kela.fi/

5Maternity Grant ( äitiysavustus )For Family Badenov we recommend Two Maternity Packages (real value approximately 275€/package)

value 550€ One cash payment value 140 € Maternity Grant value for Family Badenov is approximately 690€

6Child Benefit ( lapsilisä ) Kela pays Child Benefit for each child who is permanently resident in Finland. The

payment continues until the end of the month when the child is 17 years old. The entitlement to the child benefit is based on residence. Payment of the child benefit ends if the child moves abroad permanently with his or her legal guardian.

It is paid from the beginning of the month following the birth of the child, until the end of the calendar month

- in which the child reaches the age of 17 years- in which the child moves abroad- following which the child begins to get a disability pension under the NPA.

The child benefit can in certain situations also be paid abroad. It is often possible to get child benefit during a temporary residence abroad, such as a student exchange.

Source: http://www.kela.fi/

7Child Benefit ( lapsilisä )

Child Benefit is not income-related and it is tax-free. Family Badenov’s Child Benefits:

- 95,75€/month for their 2 year old- 105,80€/month for their 1st twin beginning of the month following the birth- 135,01€/month for their 2nd twin beginning of the month following the birth

Total 336,56€/month (beginning of the month following the twins birth, until that 95,75€/month).

Source: http://www.kela.fi/

8Maternity/Paternity Allowances( äitiys-/isyyspäiväraha )

Kela offers financial assistance to families having children. Parents can get income related allowances. The maternity leave can begin 50-30 working days before

the expected due date. Mother can choose when to start the leave. Maternity allowance is paid for 105 working days during the maternity leave.

Father can have at maximum 54 free days – in other words, about 9 weeks. Of this time, you can spend 1–18 weekdays or 3 weeks at home with the mother during the same period.

Source: http://www.kela.fi/

9Maternity/Paternity allowances(äitiys-/isyyspäiväraha )

Natasha’s taxable income in year 2014 was 76,247€ Natashas’s maternity allowance in year 2016 is 191,39€/day

Mon-Sat (not Sunday Boris’ taxable income in year 2014 was 116,871€ Boris’ paternity allowance in year 2016 is 235,72€/day Mon-Sat

(not Sunday) The allowances paid to parents are subject to tax. If parents are paid a salary during your parental leave, Kela

pays the allowances to the employers.Source: http://www.kela.fi/

10Private Daycare Allowance Private Daycare Allowance can be applied from Kela for if there

is a child in the family who is under school age and looked after by a caregiver or other daycare provider paid by the family.

The allowance includes a basic amount per child and per month. You may also be eligible for an additional amount per child and per month. The additional amount is linked to income.

Kela always pays this assistance to the daycare provider. The private day care allowance is taxable income to the service provider.

Source: http://www.kela.fi/

11Private Daycare Allowance 2-year old Marina attends the private Russian

daycare Ogonjok in Vuosaari. The monthly price daycare in Ogonjok is 890€ Kela pays Private Daycare Allowance to the service provider. The amount is 63,93€ + 600€ municipal support/month Total support is 663,93€/month and it is subject to tax for

the service provider, not to the family. Family has to pay the difference (226,07€/) to the Private

Daycare Center.

Source: http://www.kela.fi/

12Other benefitsDelivery: Family Badenov pays only for the daily hospital fee 38,80€/day The approximate value of delivery Municipal hospital

Normal delivery 2,500€C-section 4,500€

Private hospitalNormal delivery 7,500€C-section on a planned date 9,500€