The Employment Fund’s operational result for 2019 is turning out better than expected. According to a recent estimate, the annual profit will amount to approximately EUR 700 million, in contrast to the EUR 480 million forecast at the end of August.
“The improved forecast can mostly be attributed to the fact that we will be able to collect EUR 170 million in unemployment insurance contributions for 2018 in arrears. This amount is much higher than anticipated”, says the Employment Fund’s Managing Director, Janne Metsämäki.
From the beginning of 2019, the Employment Fund has charged unemployment insurance contributions on a quarterly basis according to actual salaries reported to the Incomes Register. Before that, employers had estimated the salaries to be paid for the coming year in advance. The contributions were then adjusted in the following year if necessary. Such equalisation payments or annual reports are now unnecessary due to the adoption of the Incomes Register.
The unemployment insurance contributions are used to finance earnings-related benefits and adult student benefits. The total amount of these financing contributions will decrease by approximately ten per cent from the previous year.
Earnings-related benefit expenses have decreased due to the improved employment situation. A slight increase in financing contributions has been forecast in the 2020 budget.
Janne Metsämäki, Managing Director, tel. +358 (0)40 522 3614
Tapio Oksanen, Chief Financial Officer, tel. +358 (0 )40 539 4651
Bonds are EUR 600 million each.
The biggest changes relate to the application process, the amount of the allowance and study performance requirements. The Parliament of Finland passed the new law on 29 May 2020.