Funding and regulation


Funding for earnings-related unemployment allowance and job alternation compensation is made up of a central government contribution corresponding to the basic component, unemployment insurance contributions, employer contributions for unemployment security, and fund membership fees.

As a rule:

  • central government contributes a share corresponding to the basic unemployment allowance (32.40 euros per day in 2017)
  • membership fees cover 5.5 per cent of the expenses
  • the rest is covered by the Unemployment Insurance Fund.

The share of the Unemployment Insurance Fund is collected in the form of unemployment insurance contributions made by employers and employees. Kela is compensated for the share of unemployment insurance contributions by non-union employees.

For further information on how earnings-related unemployment allowance is funded, visit the Unemployment Insurance Fund website:

The Unemployment Insurance Fund

Earnings-related security for the self-employed is not funded by unemployment insurance contributions. Central government contributes a share corresponding to the basic unemployment allowance, and the remainder is covered by the membership fees collected by unemployment funds.

Steering and regulation

The highest authority charged with the management, steering and development of the implementation of unemployment security is the Ministry of Social Affairs and Health concerning matters relating to income security and the Ministry of Employment and the Economy concerning matters relating to the labour market policy. The Ministry of Social Affairs and Health provides the unemployment funds with guidelines on the allocation of benefits.

The allocation of benefits by the unemployment funds is supervised by the Financial Supervisory Authority.

The Financial Supervisory Authority monitors and verifies that the unemployment funds comply with legislation and good insurance practice and that their operational practices are appropriate. The Financial Supervisory Authority monitors and assesses the financial standing of the organisations under its supervision, as well as their management, monitoring and risk management systems, their operating conditions, and changes in their operating environment.

Sivu päivitetty viimeksi 07.11.2017

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