Unemployment insurance contributions are used to finance costs such as earnings-related unemployment benefits, adult education allowances, pension benefits and Kela benefits. Employees and employers are obliged to make unemployment insurance contributions and they both pay their own shares of them. The employer handles payment.
Employers are liable to pay unemployment insurance contributions if a total of more than EUR 1,300 is paid in wages per calendar year. In 2018, the payroll threshold was EUR 1,200. The employee’s liability to pay applies to all people who are working and are aged between 17 and 65.
The liability to pay is based on the Act on the Financing of Unemployment Benefits (555/1998, the act is in finnish).
As of 2019, salaries and wages are reported to the Incomes Register, which provides up-to-date information to the Employment Fund.
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
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
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
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
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
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