Healthcare and social welfare finances – Social protection expenditure and financing

Social protection expenditure totalled EUR 91 billion in 2024 – a three per cent increase from the previous year

In 2024, social protection expenditure climbed to EUR 91 billion. In real terms, the expenditure increased by three per cent from 2023. Real growth refers to growth adjusted for inflation.

Majority of social protection expenditure consisted of cash benefits expenditure

In 2024, 58% of social protection expenditure consisted of cash benefits expenditure. The real growth in cash benefits expenditure was four per cent from 2023. Benefits in kind expenditure grew by two per cent in real terms.

Social protection expenditure is divided into cash benefits expenditure and benefits in kind expenditure. Administrative expenditure has been separated from cash benefits expenditure and benefits in kind expenditure where possible.

Cash benefits expenditure includes pensions, daily allowances and child benefits. Service expenditure includes healthcare and social welfare services, early childhood education and care, and employment services. In addition, all housing support is recorded as benefits in kind expenditure.

Social protection expenditure, at 2024 prices (€ bn)
Year Cash benefits Benefits in kind
1980 14,5 7,5
1990 25,4 14,4
2000 33,1 16,9
2010 43,9 27,1
2023 49,8 36,9
2024 51,9 37,7

The largest share of expenditure consisted of social protection related to ageing

In 2024, 45% of the total social protection expenditure was expenditure related to ageing. Both in relative terms and in euros, expenditure related to ageing saw the highest increase, to nearly EUR 40 billion. Most of this expenditure consists of old-age pensions (EUR 33 billion).

Social protection expenditure is classified into main categories based on the risk or need addressed by social protection. The main groups are Old age, Sickness and Health, Disability, Family and Children, Unemployment, Survivors, Housing and Other Social Protection.

Social protection expenditure in selected main functions, 1990–2024, at 2024 prices, billion euros
Year Old age Sickness and health Family and children Disability Unemployment Housing
1990 11,8 11,4 5,4 6,2 2,4 0,3
12,5 11,7 5,8 6,7 3,8 0,4
13,1 10,9 6,0 7,1 6,2 0,5
13,5 10,2 5,8 7,2 7,7 0,5
13,7 9,9 6,7 7,3 7,7 0,7
14,2 10,3 6,6 7,4 7,1 0,7
15,1 10,8 6,3 7,4 7,0 0,6
15,0 11,0 6,3 7,4 6,7 0,6
15,2 11,3 6,4 7,2 6,0 0,7
15,7 11,6 6,4 7,1 5,7 0,8
2000 15,9 11,9 6,2 6,9 5,2 0,7
16,7 12,5 6,2 7,0 5,0 0,6
17,6 13,2 6,2 7,2 5,2 0,6
18,4 13,9 6,3 7,3 5,5 0,6
19,3 14,8 6,6 7,6 5,7 0,6
20,0 15,4 6,9 7,7 5,5 0,6
20,9 16,0 7,0 7,7 5,2 0,6
21,7 16,4 7,2 7,8 4,8 0,6
22,0 17,1 7,3 8,0 4,5 1,0
24,2 17,6 7,7 8,4 5,6 1,1
2010 25,5 17,9 7,8 8,6 5,8 1,2
26,2 18,2 7,8 8,4 5,0 1,3
27,6 18,6 8,0 8,5 5,1 1,3
29,2 18,8 8,1 8,5 5,7 1,4
30,3 18,8 8,0 8,5 6,4 1,5
32,2 19,1 8,2 8,3 6,8 1,8
33,6 18,7 8,2 8,1 6,8 2,0
34,9 18,5 8,1 7,8 6,0 2,2
35,6 18,7 8,2 7,9 5,1 2,5
36,6 19,2 8,4 8,0 4,7 2,5
2020 37,9 19,8 8,7 8,2 6,3 2,6
37,9 20,5 8,8 8,0 5,8 2,6
36,8 20,1 8,7 7,6 4,4 2,7
38,1 20,2 8,8 7,6 4,4 2,7
2024 39,9 20,4 9,2 7,9 4,6 2,7

Central government financed social protection by EUR 42 billion

In 2024, the largest share of social protection expenditure was funded by the central government. The central government contribution amounted to 45.6 per cent of the total funding, which corresponds to around EUR 42 billion. The largest share of central government funding was allocated to social protection related to sickness and health.

The parties contributing to funding social protection were the central government, municipalities, employers and insured persons. Part of social protection is also covered by capital income from social security funds. The funding share of insured persons consists of, for example, pension and health insurance contributions. By contrast, client fees and taxes paid are not included in their contribution.

Financing of social protection, (€ bn)
Finansiär Utkomstskydd Tjänster
Arbetsgivarna 25,8 1,1
Försäkrade 11,2 1,4
Kommunerna 0,8 3,1
Staten 9,5 32,1

Finland had the highest social protection expenditure relative to GDP of the Nordic countries in 2023

Finland's social protection expenditure in relation to GDP was the second highest of the EU countries and the highest of the Nordic countries. Denmark had the second-highest ratio of the Nordic countries and Sweden had the third-highest ratio.

By contrast, Finland’s social protection expenditure per capita was the second lowest in the Nordic countries. Taking into account the differences in price levels between countries, Finland’s expenditure ranked in the middle among the Nordic countries.

International comparisons are based on data for the 2023 statistical year.

About the data in more detail

Background information

Statistical quality report (in Finnish)

Source

Social protection expenditure and financing 2024
Statistical Report 1/2026, 30.1.2026.
Official Statistics of Finland, Social protection expenditure and financing. THL.

Description of statistics

The Finnish Institute for Health and Welfare compiles annual social protection expenditure and funding data at the national level in accordance with the EU system of integrated social protection statistics (ESSPROS) and reports them to Eurostat as required by EU legislation.

Under ESSPROS, social protection covers all public or private sector measures that aim to ensure a reasonable standard of living and livelihood for individuals and families in the event of certain social risks and needs. Social protection covers risks and needs related to sickness and health, functional limitation and disability, ageing, family situations, unemployment, housing, and social exclusion.

To compile the Social protection expenditure and financing statistics, THL uses data from statistics, financial statements, annual reports and other similar sources.

Key data sources include the statistical reports and databases of Kela and the Finnish Centre for Pensions, the THL’s Health and social services finances statistics, the central government and municipal financial data reported by the State Treasury, and Statistics Finland’s national accounts. THL also makes use of financial statements and similar datasets from several other organisations in compiling the data on expenditure and financing data.

Update schedule

The preliminary data for Social protection expenditure 2025 will be updated in October 2026.

The statistical report Social protection expenditure and financing 2025 (OSF) will be updated in January 2027.

Publication calendar for statistics

Contact details

Tuuli Puroharju

erityisasiantuntija
puh. 029 524 7042
[email protected]