Unemployment Fund finances

Our finances are also governed by the Unemployment Fund Act. We also comply with other laws and the instructions of the authorities supervising us.

The main elements of the Unemployment Fund’s finances are benefit expenditure, administrative expenses, contributions, income from membership fees and the equalisation fund.

In its simplest form, the unemployment fund’s finances are based on estimating future benefit and administrative costs and setting the membership fee at a level that covers the fund’s share of the costs.

Financial statements are always drawn up for the financial year that has ended. The profit and loss account and the balance sheet in the financial statements show the financial result of the activities and the financial position at the balance sheet date. How much money has been spent and where? How much money has come in and from where? How much money is in savings and what are the assets?

We take professional and long-term care of our finances. We do not waste our members’ money and we always make sure that liquidity is secured and that there are sufficient resources to develop our work.

It is important to us that our operations are open and transparent. On this page you can find our financial information.

Benefit expenditure

Benefit expenditure depends on the unemployment rate of members and the amount of daily allowances paid. The level of benefit expenditure largely determines the financial management of the Fund. In addition to the Fund, the State and the Employment Fund contribute to the financing of benefit expenditure. The Fund must finance its own contribution through membership fees. The amount of benefit expenditure is the single largest factor influencing the amount of the contribution.

Administrative costs

The efficiency of the Fund depends on the ratio of administrative costs to benefit days paid. Administrative costs consist mainly of staff salaries and the operation and development of IT systems.

Equalisation fund

The Unemployment Fund’s mission is not to make a profit for its owners, its members. If the accounts show a profit, the profit is transferred to the equalisation fund. The equalisation fund is a financial buffer against a rainy day. The equalisation fund is made up of investments, the income from which can also be used to finance operations. The equalisation fund is thus, as its name implies, a means of offsetting the impact of, for example, the economic cycle on membership fees.

Income statements and balance sheets

The profit and loss account records the income and expenditure for the financial year, i.e. how much money has come in and how much has gone out. The profit and loss account also shows the result for the financial year, i.e. whether there has been a profit or loss. If the financial year is profitable, the result is transferred to the equalisation fund. If the financial year is a loss, the deficit can be covered by the equalisation fund.

The balance sheet records the values of assets and liabilities at the selected date. The balance sheet has two halves, whose totals correspond to each other. The asset side shows the assets divided into fixed and current assets. On the liabilities side are equity and liabilities and provisions.