Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entrance age to pre-primary education (ISCED 02) is 3 (UIS 2024 estimates). ISCED 02 consists of voluntary early childhood education and care for 3 to 5-year-olds and mandatory pre-primary education for 6-year-olds. The number of years of compulsory pre-primary education granted in legal frameworks is 1 (UIS 2024 estimates). The net enrolment rate for pre-primary (age 3-6) for both sexes is 91.08% (UIS 2023 estimates).
Governance
The financing of pre-primary education is shared between the state and local education providers: municipalities and other education providers bear part of the costs for tuition and school facilities, while the state participates through the central government transfers system. Central government transfers to local governments for basic public services and municipality of residence reimbursements are coordinated by the Ministry of Finance, and central government transfers for the provision of education and culture are coordinated by the Ministry of Education and Culture, which is also the public authority responsible for the financial administration of state subsidies. The Finnish National Agency for Education is responsible for collecting information and providing information services and guidance related to the financing system.
Tuition-free status
The number of years of free pre-primary education granted in legal frameworks is 1 (UIS 2024 estimates).
1. Education resources to subnational governments
Pre-primary education is financed through a shared funding mechanism in which both the state and local authorities participate, with municipalities carrying the main financial responsibility. On average, local authorities cover about 75% of the total costs using municipal tax revenue, while the state contributes roughly 25% through statutory central government transfers. These state transfers are calculated based on unit prices and municipality-specific factors such as the number of children, local conditions, population structure, and cost differences, and they are paid as a non-earmarked lump sum.
Since 2009, municipalities have been able to apply an additional, needs-based government grant targeted for disadvantaged schools. The budget of the needs-based funding is decided annually in the Finnish Parliament.
2. Education resources to institutions
Finland does not provide an institution-specific, earmarked state subsidy directly to public pre-primary schools. According to the 1998 Basic Education Act, Finland subsidizes private providers of mandatory (age 6) pre-primary education under certain conditions - mainly when they are authorised and the municipality purchases or funds the service.
3. Education resources to students and families
Children enrolled in the mandatory and free-of-charge pre-primary education (minimum of 700 hours/year, approximately 20 hours/week) are entitled to complementary early childhood education and care (ECEC) corresponding to the full-time ECEC service outside the hours of pre-primary education. The service fees for public ECEC are regulated and there is no fee for low-income families, according to the Early Childhood Education Act (No. 540 of 2018).
Children enrolled in mandatory pre-primary education have the right to either free transport or adequate financial support for travel when the distance to the education setting exceeds five kilometres, or when the journey is considered unsafe, physically demanding, or otherwise unsuitable for a child to make independently.
4. Social policies and family support programmes
Social policy measures are oriented mainly toward early childhood education and care (ECCE) services for ages 1 to 5. For example, families choosing private ECCE may receive public financial support either through municipal service vouchers regulated by the 2009 Act on Service Vouchers in Social Welfare and Health Care Services or through the private day care allowance provided under the 1996 Child Home Care and Private Day Care Allowance Act.
This profile was reviewed by Salla Fjällström, post-doctoral researcher at Tampere University.
