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Home BUSINESS1000 lose job as income support admin shifted to Kela
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Thu, 04 Feb, 2016 12:06:40 AM
FTimes – STT Report, Feb 4
The customer fills in an application for social assistance in a Social Services office. File Photo – Lehtikuva.
Nearly one thousand employees are likely to lose their jobs when basic income support administration is transferred away from municipalities to the national social insurance institution Kela, reported Finnish language daily Keskisuomalainen.
The reform will come into effect at the beginning of next year.
Kela estimated that it needs significantly less person-years for its administration of basic income support. 
In addition, Kela plans to recruit only about half of the employees it needs from outside the agency.
Local and regional authorities would have liked for existing employees to be transferred to Kela, but the agency would not agree to it.
For the municipalities, the reform will create significant staff savings. 
According to Keskisuomalainen report, subsistence expenses are however expected to grow because not everyone in the municipalities is eligible for aid applied.
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