The activities of Töötukassa are financed by contributions from employers and personal contributions from employees, investment revenues, general taxation and from support provided through the European Social Fund.
As an employer, you are responsible for paying the employer contributions, and for collecting the personal contributions that are due by your employees.
Who needs to pay?
Every physical person or legal person who employs employees or civil servants must pay the employer contributions.
Personal contributions are to be paid by every employee or civil servant, except by those who work, but who are not insured under the unemployment insurance scheme. These are those workers who have reached the pensionable age , and those who receive an early retirement pension.
How much is to be paid?
The rates are set by the government, following a proposal by the Supervisory Board of Töötukassa. In this Supervisory Board, you and your employees are represented by the employer organisations and the trade unions, which each have two votes and therefore an equal say. The government is also involved when assessing the need for changed rates, and also has two votes in the Board.
The current rates are found on this page.
How are the rates applied?
The calculation basis to which the percentages must be applied is the same as that on which social tax must be calculated, with one exception. No unemployment insurance contributions have to be paid on compensations and benefits that are paid in relation to the termination of an employment or service relation.
The personal contribution of an insured employee or civil servant is calculated on the remuneration he or she receives.
The employer contribution is calculated on the remuneration the employer pays, for all the employees or civil servants together (including what is paid to those who do not have to pay personal contributions).
Administration and payment
As an employer, you are responsible both for paying your own contributions, and for calculating and withholding the personal contributions of your insured staff. Contributions have to be paid within the first ten days of the month that follows the payment of the remuneration they are calculated on.
The Tax and Customs Board collects the contributions, transfers them to Töötukassa, and performs checks on their correctness and timeliness.
Documents for your employees
Your staff members have the right to ask you for an overview of the remunerations and contributions you have paid for them. To provide such a certificate, you can make use of the following form.
For all questions concerning the payment of contributions, please call 15501.