Unemployment insurance contribution

Unemployment insurance contributions are used for to finance costs such as earnings-related unemployment benefits, adult education allowances, pension benefits and Kela benefits.

Employees and employers are both obliged to make unemployment insurance contributions. The employer pays the contributions of both parties to the Employment Fund.

“Employee” refers to all persons who are working and are aged between 17 and 64.

“Employer” refers to all entities that pay their employees a total salary of over EUR 1,300 during a calendar year.

The liability to pay is based on the Act on the Financing of Unemployment Benefits (555/1998, the act is in finnish).

Important now

Submit a wage sum report no later than the end of January in online service or with a form. The fastest and safest way to get things done is to use our online service.

Check the contribution percentages for year 2019.

Payment liability for unemployment insurance contributions

The employer’s liability for payment is affected by factors for example the payroll sum, ownership, company type and international circumstances.

Learn about payment liability

Paying the unemployment insurance contribution

The employer pays both the employer’s and employee’s shares of the unemployment insurance contributions in accordance with the annual payment percentages.

Advice how to pay contribution

Substitute payers and assisted persons’ liability to pay unemployment insurance contributions

Unemployment insurance contributions are paid for personal assistants whose salary costs are subject to compensation based on the Act on Disability Services and Assistance. The payment is paid either by the employer or a substitute payer.

Information for substitute payers

Training compensation

Bodies such as municipalities, parishes, associations and foundations are entitled to training compensation. The employer can apply for training compensation, which is deducted from the employer’s unemployment insurance contribution.

Advices how to apply training compensation

Liability component

The employer may be obliged to pay the employer’s liability component if it has dismissed or laid off an elderly employee and the employee has been unemployed or laid off for a long period.

Learn about liability component

Disputes over termination of employment and reconciliation in accordance with the Employment Contracts Act

An employer who has terminated an employment relationship in violation of the provisions of the Employment Contracts Act is liable to pay compensation to the employee. The Employment Fund acts as an expert in reconciliation situations, and is the recipient of the deduction in coordination matters.

Learn about reconciliation
Page updated: 8/1/2019