Finland adopts new system to "warn" those reluctant to work

HELSINKI, Dec. 20 (Xinhua) -- Unemployed people receiving jobless benefits in Finland woke to a reality on Wednesday that they have to "look actively for a job" or face a cutback in their benefits.

Described by the opposition parties as "a cruel punishment of the jobless", the legislation was passed in parliament on Tuesday with votes 103-90. The measure was one of the policy changes based on the program of the current coalition government.

While described by the unions and the opposition as using a stick to force people to accept work, the official formulation said the law is a measure against "incentive traps". The term refers to situations where it is more advantageous to remain on the unemployment benefits than to take up a job.

Jarkko Eloranta, the chairman of the central "blue collar" labor organization SAK, said the next government must dismantle the system that punishes the unemployed.

The move has been difficult for the Blue Future party in the government coalition and some MPs of the Blue Party speculated the cutbacks could be called off, but group chairman Simon Elo said the "government is united".

Conservative MPs noted the "requirement to be active" came to the Finnish rules some 20 years later than in many other countries.

To avoid an under-five-percent-reduction in the benefits for 65 days, an unemployed person must show that he has worked 18 hours, earned as an entrepreneur 240 euros or participated for five days in activities arranged by the public employment service offices, during a three-month period.

In the Finnish dual unemployment compensation system, the penalty would be on average 66 euros a month for those getting salary adjusted benefits and 32 euros a month for those getting the basic compensation.

Currently, salary based benefit is paid roughly for a year and a half in most cases. Thereafter the person "drops" to the universal unemployment benefit of 697 euros per month that will continue without time limit. This reform did not change the dual system. Last year the salary-based period was reduced from 500 working days to 400.

The change is to take effect in January, 2018. Enditem