European Athletics U23 Championships - Opening Ceremony (Photo : Getty Images)
Citizens of Finland could possibly receive by November 2016 a national basic income of €800, according to a government plan.
Under the plan, all current government benefits would be removed in exchange for the €800 national basic income monthly, reports Quartz. During the pilot phase, the amount would be lower at €550, reports Lannen Media.
The plan is apparently well-received in the European country. A survey by the Finnish Social Insurance Institution, a government agency, show that 69 percent of Finns are in favor of the change. Prime Minister Juha Sipila and major political parties also support the idea because it simplifies the country's social security system.
One of the reasons behind the proposal is to address Finland's unemployment rate which went up to 11.8 percent in May from 8.7 percent in October 2014. With a national basic income, Finns could accept a low-paying employment because the additional income would help them cope with living.
Current regulations would result in lower welfare benefits if a Finn gets a temporary job, while the plan would have no personal cost on residents who accept a job with low wages.
With a population of 5.4 million, the plan would cost the Finnish government €52.2 billion a year, according to Bloomberg's estimate. For 2016, the government anticipates raising €49.1 billion revenue.
Other governments have tried the concept before. The Canadian town of Dauphin doled out a stipend to residents from 1974 to 1979 which resulted in a decline in working hours as local spent more time in school and women took longer maternity leave. But in Uganda, unemployed people were provided unsupervised grants two times their monthly income which resulted in a 17 percent hike in working hours and 38 percent boost in earnings.
