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TVR proposes Unemployment contribution rates to be lowered
Unemployment Insurance Fund Stock Exchange Release 30 August 2018 at 12:30
The Supervisory Board of the Unemployment Insurance Fund (TVR) has approved on 30 August 2018 the budget for year 2019 and decided to propose to the Ministry of Social Affairs and Health, that the following changes would be applied to the Unemployment Insurance Contributions (UIC) for the year 2019:
TVR proposes, that the average UIC for employers will be decreased by 0,41 percentage points and the UIC for employees to be lowered by 0,40 percentage points. TVR states, that the declining unemployment gives room for lower UIC rates and simultaneously provides for the financing of unemployment benefit payments and debt repayments.
The unemployment rate in Finland is according to the budget estimated to be 7,7 percent in 2018 and 7,5 percent in the next year. The benefit payments paid by TVR will decrease by five percent in 2019 from 2018. TVR estimates the change in net position will be markedly positive in 2019.
The level of UIC percentages for the next calendar year are set by the Finnish Parliament by amending the Finnish Act on Financing of Unemployment Benefits.
|TVR Budget 2019 source: TVR, Statistics Finland|
|Amounts %||2 017||2018e||Budget 2019|
|Wage sum growth p.a.||1,8||3,1||3,0|
|UIC, employers (average)||2,40 %||1,91 %||1,50 %|
|UIC, employees||1,60 %||1,90 %||1,50 %|
|Key Figures, EURm *|
|Unemployment Insurance contributions||3 061||3 037||2 464|
|Other income **||945||776||761|
|Benefits paid||- 3 435||- 3 033||- 2 890|
|Surplus / deficit||572||780||335|
|Business cycle buffer||106||886||1 221|
|Maximum limit for buffer||2 264||1 903|| 1 987 |
|* figures for 2017 are audited|
|** contributions from MSAH|
Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651
Helsinki, 30 August 2018
Unemployment Insurance Fund (TVR)
Deputy Managing Director
NASDAQ OMX Helsinki
The total contributions would therefore amount to between 2.4% and 3.0% of workers’ wages.
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