finland government offers money

Finland, the most beautiful country in the Europe has introduced a new scheme which is paying free money to unemployed in the country. Now, Finland is ready to pay a fixed income to its unemployed candidates and became the first European country to pay free money to 2,000 jobless candidates till 2019.

Finland has started this project as a trail, and in this phase, it will pay a basic monthly income amounting to 560 euros ($587). The initiative which has taken by the country is just like a social experiment to cut government red tape, diminish scarcity and increase employment.

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The Finnish Government Agency KELA will pay an amount of 478 euros monthly to the citizens those who have no jobs. Olli Kangas from the Finnish Government agency KELA said that the two-year trial with the 2,000 casually selected Finland residents who receive unemployment benefits started from January 1.

The selected persons will get a monthly income of approximately $590 from the Government agency KELA, and they no need to submit any reports on how they spend that money. The amount will be removed from any welfare they already receive. The unemployment rate of Finland stood at 8.1% in November in a total population of 5.5 million. So, nearly 213,000 people had no jobs and compared to the previous year there has been no change in the employment rate.

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Whether they find work or not, the 2,000 selected people will receive money at the beginning of each month. The primary objective of this trial project is to reduce poverty. Under Universal Basic Income (UBI), people will receive a standard amount of cash for just being alive.

Marjukka Turunen, head of Kela’s legal benefits unit says the experiment in Finland should offer visions on two fronts. According to the reports, the income of private sector in Finland is 3,500 euros per month.

Kangas said the move is to stop the “deterrent problem” among the unemployed. Through this initiative, we expect people will come out of fear. A jobless person may refuse a low-income or short-term job in fear of having his/her financial benefits reduced significantly under Finland’s generous and complex social security system.

However, some analysts said that paying a free amount to unemployed persons makes them lazier and finally they do nothing because of getting monthly income.

Kangas also mentioned that the latest initiative might be extended to other low-income groups such as freelancers, small-scale entrepreneurs, and part-time workers.