×

This country could be paying everyone $865 a month

The Finnish government is working on a proposal that would see all its citizens get paid a basic income of some 800 euros ($865) per month in an effort to tackle the country's record high unemployment.

Finland's Social Insurance Institution (Kela) is considering the so-called "basic income" scheme to replace other benefits Finland's citizens currently receive and could be trialled as early as November 2016, according to reports by local Finnish media station, YLE.

Senat Square in Helsinki, Finland.
Manfred Gottschalk | Getty Images
Senat Square in Helsinki, Finland.

Under the new legislation, Finnish adults would get paid an untaxed sum of 550 euros per month in the pilot phase of the program, with the sum rising to 800 per month if the scheme goes ahead.

Kela said the government was exploring ways to carry out an experimental study on a universal basic income plan in a statement last month, with the aim of reshaping the social security system "in response to changes in the labor market".

Finland's unemployment rate climbed to 9.5 percent in October this year according to official data from Eurostat, hitting levels not seen since 2000.

In September and October of this year, Kela's research department conducted a survey where nearly 70 percent of respondents were in favor of the idea of a universal basic income system. Respondents found around1,000 euros per month to be a suitable amount for a basic income.

Kela's research department manager, Olli Kangas was not immediately available for comment when contacted by CNBC.