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Finland tests basic pay scheme for unemployed

Jan 03, 2017, 4:31 AM EST
Finland's Prime Minister Juha Sipila
(Source: EU2016 SK/flickr)

In a move aimed at boosting job opportunities, tackling poverty and cutting red tape, Finland has introduced a unique, two-year program under which the government will pay its unemployed citizens a basic monthly income, amounting to €560. Currently, 2,000 citizens have been randomly picked for the social experiment, which in future, might be expanded to accommodate low-income groups such as freelancers, small-scale entrepreneurs and part-time workers.

Olli Kangas from the Finnish government agency K.E.L.A. said that the basic monthly payment to the selected persons would not be discontinued even if they get a job during the trial period, reports The Telegraph.

Finland, with a population of 5.5 million, has an average private sector income of €3,500 per month but a high unemployment rate, currently 8.1 percent, remains one of the pressing issues for Prime Minister Juha Sipila’s government, writes The Guardian