Finland’s Social Insurance Institution faces new €20.7 million cuts

Finland’s Social Insurance Institution (Kela) may face additional budget cuts of over €20 million next year, according to a report by Iltalehti cited by public broadcaster Yle.

The Ministry of Finance’s draft public finance plan includes savings targets for several state agencies. Kela would see the largest reduction, with €20.7 million in cuts planned for 2025. Other affected bodies include the Finnish Institute of Occupational Health (€2.8 million), the Finnish Forest Centre (€1.7 million), and the state-owned enterprise Metsähallitus (€1.4 million).

The proposed savings correspond to the planned pay raises for 2026 and 2027, Iltalehti reported. Kela’s website states that the institution already faces a €50 million savings target by 2027 as part of broader public sector austerity measures.