The employer and the employee are both liable for payment. The employer pays the contributions of both parties to the Employment Fund in accordance with the annual payment percentages. The employer must always deduct unemployment insurance contributions from the salaries paid to employees who are liable to make such contributions, even if their annual payroll sum does not exceed EUR 1,300. In this case, the employer can keep the deducted sum. The pay is always reported to the Incomes Register (as of 2019) as subject to an unemployment insurance contribution liability if the employee’s unemployment insurance contribution must be deducted from his/her pay. The Employment Fund will monitor whether the threshold has been surpassed and a payment will be levied when the payroll threshold has been surpassed.
We will send payment forms to the employer by post. We may also send payment forms electronically if you have informed us of your e-invoicing address. Private individuals and associations may also order payment forms as e-invoices on their own online banking service.
Unemployment insurance contributions can be paid from the beginning of 2019 on the basis of actualised pay information reported into the Incomes Register. The new output model makes the payment of unemployment insurance contributions clearer: the system is up to date and light to maintain, and separate notifications are no longer necessary. A payment model based on actualised wages is easier to use especially by small employers and those who offer work irregularly, with the wages varying during the year.
Invoicing in the output model takes place in April, July, October and January. Invoicing in the prepayment model, on the other hand, takes place on 2 January, 1 April, 1 July and 1 October.
Remember to use electronic invoicing. With regard to unemployment insurance contributions for 2019, decisions regarding them are available electronically together with the invoice. Invoices will always be sent, both in the advance and output model, separately for each instalment, and we can also send credit notes. In future, there will no longer be separate due dates for employees and employers.
Compared to the current practice, the actual earnings model will allow unemployment insurance contributions to be paid closer to the real time. The equalisation method will no longer be needed. . You will only need to report the payroll information to the Incomes Register and pay the invoice sent by the Employment Fund. This model will reduce the administrative burden and there is no need to submit reports separately to the Employment Fund. The implementation to the actual earnings model does not require separate measures from you. Employers will be transferred to invoicing based on actual earnings by default.
In actual earnings model, you pay lower unemployment insurance contributions until the payroll amount exceeds the limit. Higher unemployment insurance contributions should be paid after the limit have been exceeded. In general, all employers pay unemployment insurance contributions according to the actual earnings model.
Changing from one model to another
If you begin paying wages during the insurance year, you must request for the prepayment model before you submit your first earnings payment data report to the Incomes Register. If you want to deploy the prepayment model later, you must send a request to the Employment Fund by 15 November of the previous year in our online service. You will not be able to change your payment method during the insurance year.
If you prefer the prepayment model, remember to inform us about it through our online service by 15 November. Send reports through our online customer service under Employer's details. You cannot change the payment method in the middle of an insurance year. Even if you decide on the prepayment model, payroll information must be reported to the Incomes Register.
But if you have previously informed us that you want to use the prepayment model, what you have reported to us will remain valid for as long as you change the payment method or inform us that you have ended the business operations. If you inform us that you have ended business operations (final in the middle of an insurance year), you will, as of the beginning of the next insurance year, be automatically included in the output model unless you specifically request that the prepayment model be used.
If wage payment begins in the middle of an insurance year, any request to use the prepayment model must be sent to the Incomes Register before sending your first earnings payment report. When reporting, you must give an estimate on the coming year's wage payments. Prepayments are invoiced in four equal instalments on 2 January, 1 April, 1 July and 1 October. Prepayment notifications and changes are always sent to the Employment Fund. The final payment is determined on the basis of wage sums reported to the Incomes Register after the end of the insurance year but before the end of June of the following year. Adjustment payments and prepayment refunds factor in the adjustment payment interest.
You can change the prepayment wage sum during the insurance year. However, you cannot change the prepayment to be lower than what has been recorded in the Incomes Register up to that point as wages affecting unemployment insurance contributions
Contribution percentages 2019
Contribution percentages 2018
The unemployment insurance contribution payable by unincorporated government enterprises will be 0.50 % of the wage up to a total payroll of EUR 2065 500 and 1,16 % of the wage for the part that exceeds this limit.
The unemployment insurance contribution payable by universities will be 0.50 % of the wage up to a total payroll of EUR 2 086 500 and 1,38 % of the wage for the part that exceeds this limit.
The employer’s unemployment insurance contribution is graded in accordance with the wages paid to the employees. The employer’s unemployment insurance contribution percentage is 0.65% of the payroll amount up to EUR 2,083,500, and 2.60% of the payroll amount for any part exceeding this. The wages paid to part-owners are not taken into consideration in the calculation of the payroll limit. The payroll limit is adjusted annually by the employees’ wage coefficient, in accordance with the Employees Pensions Act.
The employee unemployment insurance contribution percentage is 1.90%, and the employer deducts it from the employee’s wages upon each payment of wages.
The employer must pay both contributions by the due date, using payment forms provided by TVR.
If an employer pays wages to a part-owner, the part-owner’s unemployment insurance contribution must be paid from these. The employer’s unemployment insurance contribution of a part-owner is 0.65% of the payroll amount.
The part-owner’s employee unemployment insurance contribution percentage is 0.92%, and the employer deducts it from wages upon each payment of wages.
Decisions and payment forms concerning unemployment insurance contributions can be accepted electronically via an online invoicing service or as e-invoices.
You can receive payment forms for unemployment insurance contributions as electronic invoices by reporting your electronic invoicing address to the database of e-invoicing addresses managed by TIEKE (The Finnish Information Society Development Centre).
Note: In the following situations, please provide your electronic invoicing details directly to the Employment Fund:
If you want to receive an electronic invoice to replace a payment form that has already been posted, please contact our customer service team. We do not automatically send electronic invoices to replace payment forms that have previously been posted.
Make sure that your invoicing details are up to date. You can update your contact details on our online service. You can access your invoices and decisions on our online service, as well as up-to-date payment details as of 2019.
You may also choose to receive payment forms as e-invoices. To receive e-invoices, you must make an agreement on activation of the e-invoice service with your online banking provider and select the Employment Fund as the sender of the e-invoices. Contact your bank for further information on how to activate the e-invoice service.
Contact us as soon as possible if you are unable to pay your unemployment insurance contribution by the due date.
Contact us if the matter involves any of the following:
Please note that unemployment insurance contributions are distrainable.
Overdue unemployment insurance contributions may lead to a payment default entry in credit information.