Municipalities in Finland offer high baby bonuses to encourage families as birth rates remain steady

In Finland, several municipalities offer baby bonuses to parents for children born in their areas, with some amounts reaching thousands of euros. Currently, Luhanka and Miehikkälä provide the highest baby bonuses, paying families €1,000 per year for ten years, totaling €10,000 if the child resides in the municipality until the age of ten. Lestijärvi also previously belonged to the group of top baby bonus providers, offering the same amount from 2012 to 2022.

Statistics from Finland’s Population Register indicate that baby bonuses have not significantly influenced birth rates in Luhanka, Miehikkälä, or Lestijärvi. However, local officials believe the bonuses have produced other benefits. Luhanka and Lestijärvi are among Finland’s smallest municipalities, with populations of around 700, while Miehikkälä has approximately 1,700 residents. Each locality experienced a birth rate spike in the year the bonuses were implemented, though similar peaks occurred prior to this.

Research indicates financial incentives can impact the timing of births. Teresa Halttunen, a Luhanka resident and mother of two, notes that while the bonus helps with everyday expenses, it was not a motivating factor for having children. She believes it effectively encourages families to settle in Luhanka.

Miehikkälä began offering baby bonuses in 2018, spending over €40,000 annually. The municipality’s municipal council president, Tarja Alastalo, sees this financial support as a successful strategy for retaining families.

Former Lestijärvi municipal leader Esko Ahonen stated that the primary effect of the bonus was to help maintain the local school, rather than attracting new families. While paid until 2023 for children born before that year, the program has so far disbursed €420,000.

Luhanka’s mayor, Tuomo Kärnä, emphasized that beyond the baby bonus, additional support such as home help for new parents is provided, signifying a broader need for assistance in parenting.