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
         
Unemployment rate 8,6    7,7              7,5 
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      

 

Additional  information:

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)

Tapio Oksanen
Deputy Managing Director

Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi