Unemployment Insurance Fund: Budget and proposal for Unemployment Insurance Contribution rates for 2017

 | Source: Työllisyysrahasto Työllisyysrahasto

Unemployment Insurance Fund     Stock Exchange Release     30 August 2016 at 13:00 p.m.                                                           

TVR budget and proposal for Unemployment Insurance Contribution rates for year 2017

The Supervisory Board of the Unemployment Insurance Fund (TVR) has today approved the budget for year 2017 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 2017. TVR proposes, that the average UIC for employers will be decreased by 0,46 percentage points and the UIC for employees to be raised by 0,45 percentage points. 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 9,2 percent in 2016 and 9,1 percent in 2017. The benefit payments paid by TVR will decrease by two percent in 2017 from 2016. The change in net position is estimated to be slightly positive in 2017 and the net debt position to decrease accordingly.

TVR budget for year 2017 (source: TVR, Statistics Finland)  
30.8.2016        
Amounts %     2 015    2016 e  2017 B
         
Unemployment rate   9,4    9,2    9,1 
Wage sum growth p.a.   0,8    1,0    1,1 
UIC, employers (average)   2,34    2,86    2,40 
UIC, employees     0,65    1,15    1,60 
         
Key Figures, EURm   2 015    2016 e  2017 B
         
Unemployment Insurance Contributions   2 188    2 938    3 006 
Other income *     1 142    1 125    1 024 
Benefits paid   -  4 002  -  4 013  -  3 952 
Change in Net position   -  677    46    73 
Net position (Business cycle buffer) -  686  -  640  -  567 
Maximum limit for buffer   1 521    1 569    2 252 
* 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 2016

Unemployment Insurance Fund (TVR)

Tapio Oksanen
Deputy Managing Director

Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi

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