The unemployment contribution, which is automatically withheld from pay, is expected to rise to 0.9 percent from the current level of 0.2 percent. Employers’ fees are also expected to rise, according to Finland’s Unemployment Insurance Fund.
The hike translates into the average taxpayer shelling out hundreds of more euros every month.
“This year’s budget deficit will range from 500 to 600 million euros, while earlier calculations had estimated a deficit in the neighbourhood of 120 million euros," says the fund's managing director Heikki Pohja.
Ministry officials, however, say they don’t believe such hefty hikes will be necessary.
“Increases are in store, but we haven’t seen any proposals yet on the figures,” says Esko Salo of the Ministry of Social Affairs and Health.
The Unemployment Insurance Fund will present its proposal on new unemployment contributions to the Ministry of Social Affairs and Health in October.