Työttömyysvakuutusrahasto - Company Announcement

Unemployment Insurance Fund Company Release 28 August 2015

Unemployment Insurance Fund     Company Release     28 August 2015 at 12:00 a.m.


TVR budget and proposal for unemployment contribution rates for year 2016

The Supervisory Board of the Unemployment Insurance Fund (TVR) has today
approved the budget for year 2016 and decided to propose to the Ministry of
Social Affairs and Health an increase of 0,5 %-points in the Unemployment
Insurance Contributions (UIC). This increase will apply to both the employers
average UIC and employees UIC. 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 9,5
percent in 2015 and 10,1 percent in 2016. The befits paid by TVR will increase
by 10 percent in 2016 from 2015. A substantial increase in UIC's is needed to
facilitate the financing of the growing benefits. The debt position in the
Business cycle buffer will increase notwithstanding the increase in UIC's.
According to the budget, the Business cycle buffer deficit will stand at 1.300
EURm at the end of year 2016.

 TVR budget for year 2016 (source: TVR, Statistics Finland)


---------------------------------------------------------------------
 Amounts %                   2 014                   2015 e    2016 e
---------------------------------------------------------------------


 Unemployment rate             8,7                     9,5      10,1

 Wage sum growth               0,6                     0,5       0,7

 UIC, employers (average)     2,19                    2,33      2,85

 UIC, employees               0,50                    0,65      1,15


---------------------------------------------------------------------
 Finacial figures, EURm      2 014                   2015 e    2016 e
---------------------------------------------------------------------


 Employer contribution       1 598                   1 680     1 998

 Employee contribution         378                     470      876

 Benefits paid, total     -  2 651                -  3 015  -  3 339

 Surplus / deficit          -  669                  -  870    -  419



 Business cycle buffer        -  9                  -  879  -  1 297

 Max.limit for buffer *      1 507                   1 587     1 653




  * According to legislation, the Business cycle buffer can be either positive
    or negative equaling this amount


Helsinki, 28 August 2015

Unemployment Insurance Fund (TVR)

Additional  information:         Janne Metsämäki, Managing Director. tel.
+358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651

[HUG#1948157]