Finland to test out basic income scheme

Switzerland may have voted against the controversial idea of paying all its citizens a guaranteed income, but Finland has indicated it plans to try out a monthly basic payment of 560 euros ($827).

welfare

File image of Finnish Prime Minister Juha Sipila. Source: AAP

Finland's government said it had chosen the figure for an unconditional basic income in line with a manifesto pledge by centrist Prime Minister Juha Sipila, who took office 15 months ago.

Former businessman Sipila wants to see if the measure can boost employment and simplify the welfare benefits system, and plans to test the idea on a 2,000-strong sample of randomly selected working-age residents.

"The primary goal of the basic income experiment is related to promoting employment," said the health and social affairs ministry, adding that it also aimed to simplify the complicated benefits system in a sustainable way regarding public finances.

Amid a growing debate on the subject, Finland now wants to be the first European country to test the idea nationwide.

In June, voters in Switzerland decisively rejected a far more generous proposal to pay a monthly 2,500 Swiss francs (2,300 euros/$3,400) to each adult and 625 francs for each child.

The idea has support on the political left and right with the former wanting a guaranteed safety net while some liberal voices feel that money for nothing can dissuade some jobless people from seeking work.

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Source: AFP

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Finland to test out basic income scheme | SBS News