Kela (institution)


Kela is a Finnish government agency in charge of settling benefits under national social security programs. Kela was founded in 1937 to handle retirement pay. In the 1980s and 1990s, its role was expanded to handle other fields like unemployment benefits, sickness benefits, health insurance, student financial aid, and child benefits, including a maternity package for all permanent residents.
Kela benefits are funded from three national insurance funds administered by the national government: the national pension fund, the national health insurance fund, and the general social security fund. The tax authority collects contributions to these funds from general taxation on income, charged to both employers and employees. Rates for 2021 are available on the Vero website. Coverage under the schemes is given to all permanent residents of Finland. Kansaneläkelaitos/Folkpensionsanstalten literally means "People's Pension Institute," reflecting its original function as the national provider of retirement benefits.

History

Kela was founded in 1937 during the first coalition between the Social Democratic Party and the Agrarian League under Aimo Kaarlo Cajander as a means to relieve societal inequality and instability by providing a social safety net organization.

Directors general

In оfficeDirector General
2025-presentLasse Lehtonen
2020–2025Outi Antila
2017–2019Elli Aaltonen
2010–2016Liisa Hyssälä
2000–2010Jorma Huuhtanen
1993–2000Pekka Tuomisto
1971–1993Jaakko Pajula
1954–1971V. J. Sukselainen
1946–1954Eino E. Louhio
1944–1945Väinö Arola
1937–1944Eero Rydman

Incidents

In May 2008, a Kela e-service apparently disclosed confidential medical insurance information to the wrong client. Subsequently, Kela took that service offline.