Moving to Finland 2016

Residence-based social security when moving to Finland

2016

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Contents

• General information about residence-based social security

• Moving to Finland (EU/EEA countries and Switzerland, agreement countries, other countries)• Employees• Status of family members• Benefits when moving to Finland

• Procedure when moving to Finland

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Kela – The Social

Insurance Institution of Finland

National pension

Unemploy-ment

Sickness and parental

benefits (cash benefits)

Health care

Family benefits

Private insurance

companies, funds, State

Treasury

Earnings-related

pensions

Benefits for accidents at

work and occupational

diseases

Municipalities

Public health

Income support

Social services

Unemploy-ment funds

Benefits based on residenceEmployment-based benefits

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Coverage under the Finnish social security system: Which provisions are applied?

• EU legislation (Regulations 883/2004, 987/2009, 1408/71 and 574/72)• Employment decisive criterion, sometimes residence

• Social security agreements• Scope of agreement varies from agreement to agreement• Employment/residence decisive, depends on the agreement

• National legislation• Act on the Application of Residence-Based Social Security Legislation:

mainly residence, sometimes employment• Health Insurance Act (+ Kela's rehabilitation benefits):

residence/employment• Unemployment Allowances Act: employment• Municipality of Residence Act: residence

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Moving to Finland: national legislation

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Entitlement to Finnish residence-based social security

National legislation

• Act on the Application of Residence-Based Social Security Legislation (1573/93)

• Health Insurance Act • Unemployment Allowances Act • Municipality of Residence Act

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Benefits covered by the Scope of Application Act

Group 1• Child benefit**• Maternity grant• General housing allowance• National pension**• Survivors' pension**• Benefits under the Act on Disability

Benefits:• Disability allowance for persons

aged 16 years or over**• Disability allowance for persons

under 16 years**• Care allowance for pensioners**• Dietary grant **

Group 2• Child maintenance allowance * • Guarantee pension **• Housing allowance for pensioners*• Benefits under the Act on Front-

Veterans' Pensions*

* = requirement: actual residence in Finland** = covered by the EU Regulation on social security

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Situations covered by the Scope of Application Act

• The Act on the Application of Residence-Based Social Security Legislation (1573/93) covers:• persons resident in Finland• persons who move to Finland and work in Finland• persons who move from Finland• persons who temporarily stay abroad• persons resident abroad who on the basis of law or

application are entitled to Finnish social security• family members• persons resident in Finland who are not entitled to social

security

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When is a person who comes to Finland entitled to Finnish social security benefits?

If the person moves permanently to Finland

• Whether the move is temporary or permanent is determined on the basis of the situation as a whole• All circumstances are taken

into account • Permanent residence is defined

differently for purposes of the Kela-administered social security than it is by the local register offices or the Finnish Tax Administration, for instance.

If the person works in Finland

• Even if he/she does not move to Finland permanently

• different extent of rights depending on the duration of the employment

• When the employment ends the right to social security benefits is maintained only in certain cases

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Moving to Finland: Other countries than EU/EEA countries or agreement countries

Residence in Finland

• Act (1573/1993) Section 3 a: "Social security legislation is applied to persons moving to Finland from the date of arrival in the country, if the person, taking into account his/her circumstances as a whole, is considered to move to Finland to reside in the country on a permanent basis."

• Residence in the country has to be legal• As a rule, if a residence permit is required, it should

usually be valid for at least one year

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Factors indicating permanent move

• Previously lived permanently in Finland

• Foreigner of Finnish origin• Refugee, need of protection• Family members reside here

permanently• Employment contract (or

equivalent) for work to be carried out in Finland

• Other ties to Finland

Factors indicating temporary move

• Moving only for the purpose of studying

• Asylum seeker, when the application has not been decided

• Recipient of residence permit due to temporary need of protection

=> If circumstances change and you can be considered as residing permanently in Finland, you may be covered by the social security scheme from the time the circumstances changed

Factors taken into account when considering whether the move is temporary or permanent


Employment in Finland• If you cannot be considered as residing permanently

in Finland, you can be covered by the Finnish social security scheme on the basis of employment

• Preconditions:• Employment contract for at least 4 months• The work must meet the minimum requirements as regards

weekly working hours and the wage• You must have a valid residence permit that includes the

right to work (does not concern citizens of EU/EEA countries and Switzerland)

• Coverage by the social security scheme ends, as a rule, when the employment ends, unless special provisions

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Health insurance & unemployment benefits• Coverage for benefits determined in the Acts on the relevant benefit(s),

not Act 1573/93• Covered by health insurance either

• In accordance with Act 1573/93 as resident or employed, or• On the basis of the Health Insurance Act as self-employed person if self-

employment activity for at least 4 months• Coverage by the Unemployment Allowances Act when employment

starts• N.B.

Receiving benefits requires permanent residence in Finland• EU workers: residence in Finland not required (unemployment allowance)• Other workers: requirement of at least 6 months previous employment and a valid

residence permit

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Summary

• Benefits under Act 1573/93 and the Health Insurance Act:• Permanent move or • Intention of working for 4 months in employment which

meets the minimum requirements as regards employment• Benefits under the Unemployment Allowances Act:

• Insured from the start of the employment, if employment fulfills the employment condition

• (Benefits only if resident in Finland)

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Moving to Finland:EU/EEA countries and Switzerland

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Moving to Finland: EU/EEA countries and Switzerland

Principle of country of employment• Employees

• Social security of the country of employment, i.e. Finland• Finnish definitions of who is considered "employee" as regards different benefits

• Posted workers/civil servants• Social security of the country of origin• Temporary stay in Finland (less than one year): entitlement to medical care in Finland (EHIC from

country of origin)• Permanent residence in Finland (more than one year): with form E106/S1 (from the competent

state = the country whose social security the worker is covered by) Registration of the form with Kela Certificate of entitlement to medical treatment in Finland (Todistus oikeudesta hoitoetuuksiin Suomessa) from Kela.

• Family members and other non-active persons• For family members social security of the country of residence:

entitlement to social security if permanently resident in Finland• Medical care and family benefits regardless of residence: costs covered by the competent state (=

the country whose social security scheme the worker is covered by)

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Moving to Finland: EU/EEA countries and Switzerland

Finland's definitions• Employee = person who

• is insured for earnings-related pension benefits in Finland − public healthcare and child home care allowance

• intends to work in Finland at least 4 months so that the minimum requirements for employment are met (18h/week + wage according to collective agreement; if no collective agreement => wage for full-time work at least €1173 per month (2016))− Benefits under Act 1573/93 and the Health Insurance Act

• meets the employment condition (+ is obligated to pay unemployment insurance contribution)− Unemployment allowance (accrual of entitlement)

• Please note: If you are considered as moving permanently to Finland according to Act 1573/93, you may have more extensive entitlement to benefits

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Moving to Finland:countries which have a social security agreement with Finland (agreement countries)

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Moving to Finland: agreement countries

• Nordic Convention on Social Security:• Rules on legislation applicable in Regulation 883/2004 are applied to

persons moving between the Nordic countries• Family members and other non-active persons:

residence according to population register data last-resort ground for determining applicable legislation if the countries involved cannot agree on residence

• Other agreements:• To the extent covered by the agreements e.g. posted workers remain

covered by the social security of the country of origin and employees are covered by the social security of the country of employment

• To other extents (benefits and groups of persons not covered by the agreement) determined as in situations where there is no agreement

• Agreements: USA, Canada, Chile, Israel, Australia, Quebec, India

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Moving to Finland: Entitlement to benefits

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Which benefits can you receive when moving to Finland or working in Finland?

Permanent move• All the same benefits as persons already resident here, on the same

conditions and the same amounts• For certain benefits accrued residence or insurance periods are required

(e.g. for parental allowances, preceding health insurance period of 180 days)• For persons from the EU area, insurance periods accrued in other

countries are taken into account

Persons who come to work (not permanent residence)• Entitlement to benefits for duration of employment (in some situations

certain benefits restricted to persons who work at least 6 months), benefits the same amounts as for others • In the EU area coordination rules for family benefits

• In certain cases, entitlement to benefits continue also during unemployment

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Moving to Finland: entitlement to benefits

• Entitlement to public healthcare in Finland• Municipality of residence in Finland

Public healthcare services• No municipality of residence in Finland

a) Temporary stay in Finland: Treatment necessary for medical reasons by presenting European Health Insurance Card (EHIC)

b) Employment in Finland: Services as for persons with municipality of residence in Finland, with certificate on entitlement to medical treatment in Finland (todistus oikeudesta hoitoetuuksiin Suomesta)

c) Person resident in another country whose medical care costs Finland is responsible for: Services as for persons with municipality of residence in Finland, with European Health Insurance Card or certificate on entitlement to medical treatment in Finland (todistus oikeudesta hoitoetuuksiin Suomesta)

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Procedure when moving to Finland

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Issue of decision (Act 1573/93, Section 12)

• Written appealable decision on coverage by the social security administrated by Kela is always given when• a person who moves to Finland applies for coverage by the

residence-based social security (online www.kela.fi/asiointi or on form Y 77)

• information is obtained on move abroad or return to Finland (exception: holiday trips)

• these decisions are issued by Kela's Centre for International Affairs (however, applications are filed online or submitted to any local Kela office)

• The decision may be appealed to the Social Security Appeal Board and from there to the Insurance Court

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Procedure when coming to Finland

To Finland for the first time Application for coverage by the

social security scheme to Kela (www.kela.fi/asiointi or Y 77)

• Kela card• possibility of appeal

Benefit claims to Kela (www.kela.fi/asiointi or at the local office)

Return to FinlandA. Covered by Finnish residence-

based social security during stay abroad Notice to Kela about the return

B. Not covered by Finnish residence-based social security during stay abroad application to Kela

(www.kela.fi/asiointi or Y 77) entitlement to social security from the date of moving if

permanent move/return• exception: e.g. maternity, paternity and parental

allowances and unemployment benefits Partially entitled to Finnish social security benefits during

employment

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Kela’s phone services and booking an appointment

• Kela’s phone service is open Monday through Friday 8 am to 6 pm.

• The customer service number for international situations is 020 634 0200 (social security when moving to or from Finland and other international situations).

• It’s also possible to book an appointment or a phone consultation• The appointment can be booked online. A valid phone number and a

Finnish identity code is needed• Alternatively the appointment can be booked by calling the customer

service number 020 634 0200

Government & Nonprofit

Moving to Finland 2016