Board proposes reduction in unemployment insurance contributions for employers and employees in Finland

The Board of the Employment Fund has decided to propose a reduction in unemployment insurance contributions for next year to the Fund’s management council. According to the announcement, the average employer contribution would be 0.61 percent of wages, a decrease of 0.21 percentage points compared to this year. Meanwhile, the employee contribution would be 0.59 percent of wages, which is 0.20 percentage points less than this year.

Based on the Employment Fund’s calculations, for instance, an employee earning 4,000 euros per month would pay approximately 283 euros in unemployment insurance contributions annually, or about 24 euros per month. This represents a reduction of 96 euros from the current year’s contributions.

The proposal for the unemployment insurance contribution rates for next year is based on forecasts and calculations utilized by the Employment Fund. The forecasts indicate that the economic situation in Finland will remain challenging this year, but it is expected to improve by 2025.