The Ministry of social Affairs and health of Finland published the details of preparing the country’s experiment on payment of the basic income of 560 euros a month, reports TASS.
Until 9 September, the Agency will gather feedback from other interested government agencies and organizations, including associations of the unemployed, NGOs and trade unions, after which it will submit to Parliament a bill.
In experiment 2 thousand Finnish unemployed people, selected on a random basis, will receive per month for 560 euros is not taxed.
To pay a guaranteed income is the state social insurance Office (Kela)
It is expected that this approach will help to reduce the number of unemployed, as many Finns unprofitable to work on a casual low-paid jobs, as in this case, they are deprived of social benefits.
Previously the experiment was approved by the Prime Minister of Finland, Juha Sipilä. If the project will have a positive impact on the labour market of the country, its conditions are intended to apply to all citizens.
Initially, we note that the pilot program of guaranteed income in Finland wanted to choose 8 thousand Finns belonging to low-income segments of the population, we divide this group into subgroups and give them different amounts with the aim of testing assumptions about whether a higher income to deprive people of the motivation to job search.
According to Yle, the average income of the richest 10% of citizens of Finland exceeds 4900 euros, and an income of 10% of the “poor” is around 2100 euros. The average wage in Finland at the end of 2014 amounted to 3,300 euros.
About 30% of the income of Finnish citizens pay the government: income tax, payments to pension and social funds. When this until 2009, in Finland the rate of tax payments amounted to an average of 37.5%, in 2009 the rate was lowered to 29.3%.
Recall the concept of the unconditional (base) of income comes from the fact that all adult citizens receive the same basic amount instead of social benefits, regardless of employment and economic situation. Partial introduction of this model implies that in addition to, if necessary, may be paid social security benefits.
The idea is not new – in the XVI century philosopher and politician Thomas more has proposed something similar in his philosophical treatise “Utopia”. Among modern economists advocate a guaranteed income as a replacement of social benefits is Milton Friedman, the Creator of the theory of market capitalism.
In early June of this year, the Swiss citizens in a referendum voted against the introduction of payments of the guaranteed income of 2.5 million francs (nearly 2.6 thousand dollars) per month.