Kela Faces Delays in Processing General Unemployment Support Applications
The processing of new general unemployment support applications has become congested at Kela, leading to delays that in some cases exceed the statutory maximum processing time. The backlog affects the recently introduced general support, which replaced Kela’s labour market subsidy and basic daily allowance at the beginning of May.
According to Kela, the average processing time for first-time applications is currently around 3–4 weeks (Yle). However, MTV Uutiset reports that the average processing time has reached approximately 34 days, meaning some applications are being handled a few days beyond the legal deadline of 30 calendar days. Under Finnish law, Kela must issue a decision on unemployment benefits within 30 days of receiving an application.
The congestion is attributed to a rise in unemployment and an influx of applications from recent graduates (Yle). Kela has indicated that the situation is expected to improve within a few weeks. While new applications face delays, continuation applications for ongoing unemployment periods are being processed more swiftly, typically within seven days (Yle).
The general support system, introduced in May, consolidates previous unemployment benefits under a single framework. The current backlog highlights the challenges in adapting to the new system amid increasing demand.