Perusraja

Perusraja is a term used in Finnish public policy to denote a basic threshold used in the assessment of eligibility for certain social benefits and means-tested support. The concept functions as a lower bound that helps determine whether an applicant is eligible for aid and, in some programs, shapes the size of the benefit or the rate at which it is reduced as income increases.

Etymology: The word combines perus, meaning basic or fundamental, with raja, meaning border or limit. In policy texts, perusraja is not a universal figure fixed by statute; rather, separate programs set their own perusraja values, which may be adjusted over time.

In practice, the perusraja serves as a reference point in calculations used by social security offices and welfare agencies. It is used to distinguish a protected level of resources from income that is treated differently for eligibility or benefit calculation. Because different programs cover families, individuals, students, or pensioners, there can be multiple perusraja values in use at any given time.

Policy considerations around the perusraja include questions of adequacy, simplicity, and incentives. Proponents argue that a clearly defined threshold protects basic living standards, while critics caution that too high or too low a threshold can distort work choices or leave gaps in coverage.

See also: welfare, means-tested benefits, basic income, social security.