Unemployment Insurance Fund Company Release 28 August 2015

| Source: Työllisyysrahasto Työllisyysrahasto

Unemployment Insurance Fund     Company Release     28 August 2015 at 12:00 a.m.                                                                 

TVR budget and proposal for unemployment contribution rates for year 2016

The Supervisory Board of the Unemployment Insurance Fund (TVR) has today approved the budget for year 2016 and decided to propose to the Ministry of Social Affairs and Health an increase of 0,5 %-points in the Unemployment Insurance Contributions (UIC). This increase will apply to both the employers average UIC and employees UIC. 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.

The unemployment rate in Finland is according to the budget estimated to be 9,5 percent in 2015 and 10,1 percent in 2016. The befits paid by TVR will increase by 10 percent in 2016 from 2015. A substantial increase in UIC's is needed to facilitate the financing of the growing benefits. The debt position in the Business cycle buffer will increase notwithstanding the increase in UIC's. According to the budget, the Business cycle buffer deficit will stand at 1.300 EURm at the end of year 2016.

TVR budget for year 2016 (source: TVR, Statistics Finland)  
         
Amounts %     2 014   2015 e  2016 e
         
Unemployment rate     8,7    9,5    10,1 
Wage sum growth     0,6    0,5    0,7 
UIC, employers (average)   2,19    2,33    2,85 
UIC, employees     0,50    0,65    1,15 
         
Finacial figures, EURm   2 014   2015 e  2016 e
         
Employer contribution   1 598    1 680    1 998 
Employee contribution   378    470    876  
Benefits paid, total   -  2 651  -  3 015  -  3 339 
Surplus / deficit   -  669  -  870  -  419 
         
Business cycle buffer -  9  -  879  -  1 297 
Max.limit for buffer *     1 507    1 587    1 653 
         
  • According to legislation, the Business cycle buffer can be either positive or negative equaling this amount

Helsinki, 28 August 2015

Unemployment Insurance Fund (TVR)

Additional  information:         Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651