Finland: a new VET funding model supports performance

Starting in 2026, the structure of VET funding will change:

• The portion of core funding based on student years (a statistical unit equivalent to one student for one year of study) will be reduced from 70% to 50%.
• The share of performance-based funding, determined by completed qualifications, will increase from 20% to 30%.
• The share of funding linked to graduates’ employment and further studies will rise from 7% to 18%.
• The share based on student and employer feedback will decrease from 3% to 2%.

Source: Finnish National Agency for Education, based on data from the Ministry of Education and Culture.

The new funding model will also introduce a cap on the number of students outside compulsory education who can be counted toward core funding.