Annual Report
1 Jan–31 Dec 2022
2022
2Annual report 2022 Contents
Contents
ANNUAL REPORT 2022
3 The year of Employment Fund in
brief
4 Managing Director’s review
7
8 Strategy, mission, vision and
values
11 REPORT OF THE BOARD OF
DIRECTORS
12 Duties of Employment Fund
14 Cooperation with stakeholders
15 Customer service at Employment Fund
17 Unemployment insurance
contributions
24
34 Finance
37 Investment activities
41 Risk management
42 Personnel
45 A glimpse into 2023
47 Corporate governance
60 Remuneration report
65 FINANCIAL STATEMENTS
66 Financial Statements (IFRS) 2022
69
110 Auditor’s Report
3Annual report 2022
The year of Employment Fund in brief
were again accumulating in the business cycle buffer.
We focused on ensuring
a better customer
experience and managed
to improve customer
We provided EUR
2,832
million for the funding
of unemployment and
We prepared for the
implementation of the
restructuring protection
reform, which entered into
force on 1 January 2023.
Key matters in 2022
4Annual report 2022
Managing Director’s review
Managing Director’s review
At the start of 2022, the outlook for the
Finnish economy was still reasonably
bright but the situation changed quickly
after the Russian invasion of Ukraine.
environment, the employment situation in
Finland improved during 2022.
The changed outlook prompted us to revise
our estimates of Employment Fund’s 2022
results downwards in March. The improving
employment situation was, however,
late summer. In the end, the result for 2022
accumulated in the business cycle buffer.
Our liquidity remained at good level and
secured. We renewed our revolving credit
facility (RCF) in early 2022, which helped to
boost our liquidity still further.
There was growing uncertainty about
reports to the Financial Supervisory
Authority. We also raised our cyber
security preparedness level and focused on
wellbeing at work and measures ensuring
that our personnel can cope with their
work in the challenging new situation.
Despite exceptional times, we were able to
manage all our statutory tasks as set out in
our objectives.
Customer satisfaction with Employment
from the previous year. The competent and
professional personnel of Employment
Fund deserve thanks for their good work.
5Annual report 2022
HYBRID WORK IN NEW PREMISES
In early January, we moved to a
Ruoholahti district of Helsinki. The
premises were designed and renovated
for us on the basis of the needs of our
personnel now and in the future. In May,
we switched from full-time remote work
introduced at the start of the coronavirus
pandemic to a hybrid model. In the same
connection, we launched a trial in which, in
addition to using the extensive and well-
tried remote work model, we also worked
principles. The trial was a success and
we adopted the arrangement as our new
operating model in October.
During the year, in accordance with our
action plan, we improved our information
security and data protection, built and
strengthened competencies essential for
digitalisation, put our customer strategy
developed our customer communications
by, for example, launching a new website
for our adult education allowance
customers.
The seminar Nordiskt
Arbetslöshetsförsäkringsmöte held in
September marked the culmination of our
stakeholder cooperation. The event was
jointly organised by Employment Fund and
the Federation of Unemployment Funds in
Finland (TYJ). The seminar was attended
by 79 unemployment security experts from
Nordic unemployment funds, government
agencies responsible for labour matters
and relevant ministries. The functioning
security systems during crises was the
theme of the seminar.
Managing Director’s review
We switched from full-time
remote work introduced at
the start of the coronavirus
pandemic to a hybrid model.
6Annual report 2022
PREPARING AND PREPARATIONS
FOR LEGISLATIVE CHANGES
In June, Finnish Parliament adopted
a legislative proposal on restructuring
protection and additional days of
unemployment security under which
the additional days will be gradually
phased out and replaced with a
by Employment Fund. As in 2021, we
continued our preparations for the new
task by constructing a processing system
and an information system supporting
it, which was made operational in early
2023. The system development work will
continue during 2023.
During the spring, the working group on
continuous learning appointed by the
Ministry of Social Affairs and Health
assessed the need to revise the system
and training compensation paid by
Employment Fund. The working group,
which completed its work in April, did not
make any concrete proposals for legislative
changes. The Ministry of Education and
Culture also launched an evaluation of the
The results will be published in spring
2023 and any decisions on changing the
system will only be made during the next
parliamentary term.
NO NEED TO RAISE UNEMPLOYMENT
INSURANCE CONTRIBUTIONS
Unemployment insurance contributions
were increased moderately in 2021 and
2022. Due to the positive development
we proposed that the contributions
would be kept at 2022 levels in 2023.
Current contribution levels will safeguard
assets will accumulate in our business
cycle buffer.
JANNE METSÄMÄKI
Managing Director
Managing Director’s review
The additional days of unemployment security are replaced by the
7Annual report 2022
Income 2018 2019 2020 2021 2022 Change EUR Change %
Employer contribution income 1,458 1,238 993 1,160 1,327 167 14%
Employee contribution income 1,519 1,379 1,073 1,241 1,424 183 15%
Government contributions 774 688 1,248 911 717 -194 -21%
Liability component income 50 39 26 23 22 -1 -4%
-7 8 -16 3 -34 -37 -
Total income 3,794 3,353 3,324 3,338 3,456 118 4%
Expenses 2018 2019 2020 2021 2022 Change EUR Change %
Unemployment funds -1,068 -954 -1,372 -1,463 -1,039 -424 -29%
Government contribution, funds -774 -685 -1,245 -909 -714 -195 -21%
Finnish Centre for Pensions -620 -577 -870 -902 -596 -306 -34%
Social Insurance Institution of Finland -228 -206 -207 -239 -243 4 2%
-187 -187 -197 -186 -189 3 2%
Ministry of Economic Affairs and Employment -20 -24 -25 -14 -20 6 43%
State Pension Fund -12 -8 -9 -11 -8 -3 -27%
Administrative expenses -13 -19 -21 -26 -23 -3 -12%
Total expenses -2,921 -2,659 -3,947 -3,750 -2,832 -918 -24%
Change in net position 872 694 -623 -412 625
Net position 969 1,668 1,045 633 1,258
8Annual report 2022
Strategy, mission, vision and values
Strategy, mission, vision and values
The strategy of Employment
Fund comprises its mission,
vision, strategic goals and
values.
Our mission is to
provide security for
changes in working life
. Our vision is to be
a superior executor of social security.
we renew, we evolve, we act, and we are a
united team.
In 2022, we continued to develop our
operations and to advance our strategic
goals. Central to this was ensuring
operational compliance, promoting
digitalisation and ensuring high-quality
services for our customers. We are
and quality of our operations and to
improve the skills of our employees to
support this development.
Using our customer strategy as a basis, we
systematically develop our services and
operating practices in accordance with
the needs of our customers and operating
environment. In other words: we give
priority to our customers in accordance
with our values. During 2022, we focused
on our customer services and the online
customer satisfaction.
Providing security
for changes in
working life
9Annual report 2022
Employment Fund’s strategy
Strategy, mission, vision and values
Values
Vision
Superior
executor of
social security
Our customers
We renew
We evolve
We act
We are a
united team
Production of added
value by using data
and forecasts
Forerunner in developing
customer-based services and
Active and respected
actor in the Fund’s
network
Contented personnel
and an attractive
employer
Constant development
of unemployment
insurance contributions
Strategic goals
Mission
Providing security for
changes in working life
Forces of change
Evolving requirements for competences and education
Changes in the social security system
Fragmentation and unpredictability of political decision-making
Changes in education and study methods
Changes in work, working life and livelihood
Socioeconomic polarisation of regions and citizens
Expectations of customers and stakeholders, changes in consumer behaviour
Requirements/expectations for public service integration – one-stop shop
10Annual report 2022 Strategy, mission, vision and values
Our strategic goals are:
• becoming a frontrunner in developing
customer-based services
•
impact
• producing added value by using data
and forecasts
• to be an active and respected actor in
the Fund’s network
• to be an attractive workplace with a
high degree of wellbeing at work
• ensuring that increases in
unemployment insurance contributions
are kept at moderate levels.
Our action plan for 2022 was focused on
these goals.
customer experience, and staff satisfaction.
Employment Fund’s Board of Directors
evaluates the Fund’s progress towards
its strategic goals on a regular basis. The
Board also holds a strategy meeting each
year.
MISSION
Providing security for
changes in working life
VISION
Superior executor of
social security
VALUES
We renew, we evolve, we act
We are a united team
Our aim is to be an attractive workplace
with a high degree of wellbeing at work.
11
Report of the
Board of Directors
12Report of the Board of Directors 2022
Duties of Employment Fund
Duties of Employment Fund
Employment Fund’s main
and collect unemployment
insurance contributions,
The Fund collects the unemployment
insurance contributions paid by employers
and employees. The unemployment
insurance contribution rates are set
annually by an act of parliament. The
unemployment insurance contributions are
determined on the basis of the information
submitted by the employers to the Incomes
Register. The Fund maintains a business
cycle buffer arising from the difference
between its income and expenses, and the
purpose of the buffer is to keep increases in
contributions at moderate levels. With the
buffer, the Fund can ease upward pressure
on contributions when unemployment
security expenditure increases.
include the unemployment allowance paid
by unemployment funds and the Social
Insurance Institution of Finland as well
as the adult education allowance and the
directly by the Fund. From 1 January 2023,
the Fund has also been responsible for
scheme.
Employment Fund is also responsible for
accrued during periods when daily
unemployment allowances, job alternation
compensation and adult education
allowances are paid. Employment Fund remits
a payment amounting to the basic daily
allowance paid by the state to contribute to
the daily unemployment allowances paid
by unemployment funds.
Employment Fund’s operations are supervised
by the Financial Supervisory Authority.
3,000
2,500
2,000
1,500
1,000
500
0
EUR
million
Financing contributions paid to
unemployment funds, EUR million
Unemployment rate, %
2018 2019 2020 2021 2022
unemployment funds
10
9
8
7
6
5
4
3
2
1
0
%
1,842 1,639 2,618 2,372 1,753
7.4%
6.7%
7.7%
6.8%
7.7%
13Report of the Board of Directors 2022 Duties of Employment Fund
1,424
Insurance and state
contributions collected
3,491
1,349
Figures for 2022
The State
insurance contributions.
EUR
million
million
1,039
accrued during
the Finnish Centre for
Pensions and the State
Pension Fund.
million
243
million
178
We fund the adult
insurance contributions.
In certain situations,
component and a compensation
for disputes concerning
EUR
million
717
EUR
million
EUR
million
Fund
million
20
We fund training
compensations
municipalities, parishes,
associations
and foundations).
million
11.5
We fund scholarships
million
714
contribution to
EUR
million
604
EUR
EUR
EUR
EUR
EUR
EUR
*Includes
Net assets in
the business
Contributions
paid*
2,832
EUR
million
million
8.8
EUR
The surplus
boosted
net position of
EUR 625 million.
EUR
1,258
million
14Report of the Board of Directors 2022 Cooperation with stakeholders
Cooperation with stakeholders
Employment Fund cooperates extensively
with a broad range of different parties.
We perform our statutory tasks in close
cooperation with relevant ministries
(the Ministry of Social Affairs and
Health, Ministry of Economic Affairs and
Employment, Ministry of Finance, and the
Ministry of Education and Culture). We are
part of Finland’s statutory social insurance
scheme. In these matters, we cooperate
with unemployment funds, Social Insurance
Institution of Finland, Finnish Centre for
Pensions, Finnish Workers’ Compensation
Center and pension insurance companies.
Labour market central organisations
participate in the administration of
Employment Fund and we cooperate with
these organisations. As the provider of adult
education allowance, the Fund cooperates
closely with educational institutions and we
also cooperate with the Service Centre for
Continuous Learning and Employment. In
addition, Employment Fund’s tasks require
effective cooperation with banks and
We communicate and interact with
our stakeholders in a targeted way
across multiple channels, taking each
stakeholder’s needs into consideration. For
instance, we communicate via a regular
newsletter with Members of Parliament
and employers paying unemployment
insurance contributions. In 2022, we
organised webinars for educational
institutions and customers applying for
adult education allowances.
In September, Employment Fund and the
Federation of Unemployment Funds in
Finland jointly organised a Nordic meeting
on unemployment insurance issues, which
was attended by unemployment security
experts from Nordic unemployment funds,
government agencies responsible for
labour matters and relevant ministries.
unemployment security systems during
crises was the theme of the meeting.
Our goal is to also act as an interesting
source of information for the media in
matters related to employees’ social
security, unemployment insurance
contributions and competence
development. We provide and deliver
information to the media and other
stakeholders and publish regular press
releases. Over the past few years, we have
disseminated more information on matters
Fund and developments in the Finnish
economy. In 2022, we also launched a video
series in which our experts discuss topics
concerning continuous learning and adult
education allowance.
15Report of the Board of Directors 2022
Customer service at Employment Fund
In 2022, the focus in our
customer service was on
ensuring a better customer
experience.
At the start of the year, we introduced
more comprehensive methods to
measure customer experience, which has
provided us with detailed information
on our strengths and on areas where
improvements are still needed. Using the
measurement data and open customer
feedback as a basis, we focused on
processes where customer satisfaction
was particularly low. Making customer
experience a priority also brought results:
customer satisfaction on our services
improved steadily throughout the year.
The customer satisfaction score (CSAT)
stood at 84% for 2022 as a whole.
Our telephone service was the service
channel with the highest customer
satisfaction in 2022. The customer
satisfaction score (CSAT)
achieved by our telephone service for
unemployment insurance contributions
than 90% throughout the year. At the
same time, the unemployment insurance
online service and the submitting of the
adult education allowance information by
employers were the areas with the most
customer satisfaction challenges. The
overhaul of the unemployment insurance
online service is part of the project to
update our unemployment insurance
services, which will start in 2023. At
the same time, based on the feedback,
we incorporated improvements in the
adult education allowance process for
employers at the start of December 2022.
We will monitor the impact of the changes
on customer satisfaction among the
Customer service at Employment Fund
16Report of the Board of Directors 2022
MOST OF THE CUSTOMER SERVICE
IS NOW PROVIDED ONLINE
We now provide most of our customer
service online. The number of telephone
contacts remained at previous years’
levels or even declined slightly whereas
the usage of the written customer service
matters.
In 2022, most of the advice on adult
messaging functionality. We received a
total of 64,592 messages or an average of
177 messages on every day of the year.
The large number of messages, combined
with the fact that customers expect
to get a quick answer prompted us to
improve the messaging functionality to
ensure a positive customer experience.
With the changes incorporated into the
functionality, we were able to increase the
customer satisfaction score (CSAT) of the
messaging service from about 60% during
the early part of the year to about 70%
during the second half of the year.
In advice on unemployment insurance
matters, the telephone channel is still
more popular than the online service.
One reason is probably because based on
the customer feedback, there is room for
improvement in the online service and we
will meet these needs in the overhaul of the
online service.
The telephone service for unemployment
insurance matters received a total of
12,783 (13,421) calls in 2022. In 11% of them,
the customer chose the callback option
instead of waiting on hold. The number
of telephone inquiries concerning adult
same level as in previous years. In 2022, we
answered 36,254 (38,700) calls concerning
callback request to avoid waiting on hold.
A total of 14% of the customers calling the
in 2022.
The amount of incoming paper mail has
been declining over the past few years
and it now mainly consists of additional
information sent in connection with adult
documents sent by our stakeholders.
Customer service at Employment Fund
17Report of the Board of Directors 2022
Unemployment insurance contributions
Unemployment insurance contributions
The Employment Fund assesses
and collects unemployment
insurance contributions and
responsibilities related to
the statutory unemployment
insurance contributions.
The duty to pay unemployment insurance
contribution is based on the Act on
(555/1998). Unemployment insurance
contributions are paid by employees
aged between 18 and 64 as well as their
employers. The minimum age for the
liability to pay unemployment insurance
contributions was raised to 18 years on
1 August 2022. Until then, the liability to
pay the contribution started at the age
of 17. The employer was liable to pay the
unemployment insurance contributions
if the wages paid by it exceeded EUR
1,300 during 2022. No unemployment
insurance contributions are paid from an
entrepreneur’s earnings. Part-owners as
Act (1290/2002) are obligated to pay
unemployment insurance contributions but
they pay the lower rate paid by employees.
All wages, bonuses or similar
compensation that have been paid or have
been agreed to be paid during employment
or a service relationship as compensation
for work are considered income that can
be used as a basis for unemployment
insurance contributions.
The employer deducts the employee’s
unemployment insurance contribution from
the employee’s wages when paying the
wages and reports the earnings payment
data to the Incomes Register. Employment
Fund receives the wage details directly
from the Incomes Register and, using
the earnings payment data as a basis,
determines the unemployment insurance
contributions payable by the employers.
Employment Fund collects the contributions
four times each year (in January, April, July
and October) on the basis of the wages paid
in the previous three months. The use of
the Incomes Register has allowed extensive
automation of the payment procedure: In
2022, a total of 98.4% of all decisions was
issued on an automated basis.
18Report of the Board of Directors 2022
UNEMPLOYMENT INSURANCE
CONTRIBUTION IN 2022
Contribution rates in 2022 (the rates for
2021 are given in brackets):
• Employee’s unemployment insurance
contribution was 1.50% (1.40%) of paid
wages.
• Employer’s unemployment insurance
contribution was 0.50% (0.50%) of paid
wages up to a payroll of EUR 2,197,500
(2,169,000), and 2.05% (1.90%) of the part
exceeding it.
• Average employer’s unemployment
insurance contribution was 1.51%
(1.42%).
• Employee’s unemployment insurance
contribution for part-owners was 0.74%
(0.65)% of paid wages, and employer’s
unemployment insurance contribution
for part-owners was 0.50% (0.50%) of
paid wages.
• The unemployment insurance
contribution for unincorporated state
enterprises was 0.50% (0.50%) of the
wages paid by the enterprise for its
business operations up to a payroll
of EUR 2,197,500 (2,169,000), and 1.18%
(1.15%) of the part exceeding it.
• The unemployment insurance contribu-
tion for universities was 0.50% (0.50%)
of paid wages up to a payroll of EUR
2,197,500 (2,169,000), and 1.49% (1.38%) of
the part exceeding it.
In 2022, the unemployment insurance
contributions paid by employers totalled
EUR 1,327 (1,160) million and the liability
components paid by employers EUR 22
(23) million. The unemployment insurance
contributions paid by employees was EUR
1,424 (1,241) million in total.
Unemployment insurance contributions
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2018 2019 2020 2021 2022
Employees
Employers
EUR
million
2,424
1,183
1,241
2,092
1,019
1,073
2,657
1,278
1,379
3,027
1,508
1,519
2,773
1,349
1,424
Unemployment insurance
contributions collected
19Report of the Board of Directors 2022
SUPERVISION OF UNEMPLOYMENT
INSURANCE CONTRIBUTIONS
Employment Fund supervises that
pertaining to the unemployment insurance
contributions. The purpose of the
supervision is to ensure that the earnings
payment data reported by the employers
as a basis for the unemployment insurance
contributions correspond to the actual
wage payments and that the correct
amounts of unemployment insurance
contributions are collected. Any failures
to meet the payment obligation can be
addressed in the supervision.
Employment Fund supervises the
the insurance year in progress and in the
three insurance years preceding it. In
2022, the insurance years 2019–2022 were
time, the supervision focused solely on a
period after the introduction of the Incomes
Register. Before the introduction of the
Incomes Register, the employers reported
the details of the wages that they had paid
separately to the users of the information.
We compared the payroll reported by the
employers to Employment Fund with
the annual information returns that the
employers had submitted to the Finnish
Tax Administration.
Since 2019, employers have reported all
earnings payment data to the Incomes
Register where the users of the information
can access them. The introduction of the
the manner in which Employment Fund
supervises the payment of unemployment
insurance contributions. In its supervisory
work, Employment Fund now focuses on
ensuring the correctness of the earnings
payment data submitted to the Incomes
Register. The Fund examines both
manifestly incorrect reports and reports
that must be checked for other reasons.
In addition to the Incomes Register
data, Employment Fund also uses in its
supervisory activities information on
employers received from other authorities
and social insurance providers. We are
continuously developing the supervision
to respond to changes in the operating
environment.
In 2022, Employment Fund investigated
640 (1,691) cases for supervision. Based
on the supervision, Employment Fund
ordered additional payments totalling EUR
383,417 (about 2 million) and paid refunds
totalling EUR 16,001 (about 300,000). With
the introduction of the Incomes Register,
there has been a substantial decrease in
the number of investigations as well as
additional payments and refunds resulting
from the supervision.
Unemployment insurance contributions
20Report of the Board of Directors 2022
LIABILITY COMPONENT
PAID BY EMPLOYERS
If an employee close to the retirement
age has been dismissed or laid off and
is facing long-term unemployment or a
long-term lay-off, Employment Fund can
order the employer in question to pay a
liability component and collect it from this
employer. The liability components are
expenses caused by dismissals and lay-
offs. Provisions on determining the liability
component and the collection procedure
are plaid down in chapter 8a of the Act on
(555/1998).
About 9,700 (10,700) new liability
component cases were submitted to
Employment Fund in 2022. According
to Employment Fund, the reduction in
the number of lay-offs prompted by the
decrease in new liability component cases.
We imposed a liability component on the
employer in about 1,300 (1,200) cases.
About EUR 22 (23) million in liability
components were recorded in 2022. The
average processing time in cases that led to
a payment decision was 50 (42) days.
Under the legislative changes approved by
Finnish Parliament in June 2022, the right
to the additional days of unemployment
allowance will be phased out. This also
means that the collection of liability
components will end. The new statutory
restructuring protection fee for employers
dismissing employees will replace the
liability components during a transition
period. Employees born in 1964 are the last
age group eligible for the additional days
and for whom the employer is obliged to
pay the liability component. Employees
born in or after 1965 are not eligible for the
additional days, and the employer is not
obliged to pay the liability component for
them. The transition period for the liability
component will end by the year 2035.
Unemployment insurance contributions
The new statutory restructuring protection fee for
employers dismissing employees will replace the
liability components during a transition period.
21Report of the Board of Directors 2022
RESTRUCTURING PROTECTION FEE FOR
EMPLOYERS DISMISSING EMPLOYEES
Under the act approved by Finnish
Parliament in June 2022, Employment
Fund will, from the beginning of 2023,
start collecting the new restructuring
protection fee for employers dismissing
employees. Provisions on determining
the restructuring protection fee and the
collection procedure are laid down in
chapter 4a of the Act on the Financing of
The employer may be obliged to pay
the restructuring protection fee if it has
dismissed an employee aged 55 or over on
and the employee had worked for the
The restructuring protection fees are used
protection package. The restructuring
protection package consists of restructuring
protection training and restructuring
protection allowance. The Employment and
dismissed employee with restructuring
protection training corresponding to
two months’ pay. The Social Insurance
Institution of Finland or an unemployment
fund also pays the employee a restructuring
protection allowance corresponding to one
month’s pay.
During 2022, we actively participated in
the legislation drafting process and the
implementation of the future legislation. In a
project launched in 2021, we have developed
an information system for collecting the fees,
provided employers and stakeholders with
information on the new fee and prepared for
changes in our operating practices.
RECONCILIATION BASED ON THE
EMPLOYMENT CONTRACTS ACT
An employer that has laid off an employee
or terminated an employee’s employment
contract in violation of the provisions of
the Employment Contracts Act is liable to
pay compensation to the employee. A total
of 75% of the compensation is deducted
from the earnings-related unemployment
employment relationship has ended when
compensation is paid for salary losses due
to unemployment. The employer pays the
deduction to Employment Fund.
The reconciliation based on the
Employment Contracts Act is made when
a court orders payment of compensation
or when the parties to the dispute agree on
a compensation. The court must consult
Employment Fund if after the end of
the employment relationship or for the
duration of the lay-off, the plaintiff has
received earnings-related unemployment
allowance. Employment Fund issued
about 640 (740) statements and contract
comments during 2022.
Unemployment insurance contributions
22Report of the Board of Directors 2022
TRAINING COMPENSATION
The purpose of the training compensation
is to improve the employer’s opportunities
to provide their employees with training
enhancing vocational competence.
The training compensation can be
paid to employers that are not eligible
for employer’s training deduction in
taxation (such as municipalities, parishes,
associations and foundations).
Employment Fund grants and pays the
training compensation based on the
information provided in the application
training compensation must be submitted
by the end of January following the
insurance year.
In 2022, Employment Fund paid about EUR
8.8 (8.1) million in training compensation
to 591 (555) employers for training days
in 2021. The training days reported by the
employers eligible for the compensation
totalled 407,738 (347,762). Of the employers
receiving training compensation, 308 (292)
were cities or municipalities.
Unemployment insurance contributions
Employment Fund grants
and pays the training
compensation based on
the application submitted
by the employer.
23Report of the Board of Directors 2022
51.4% 48.6%
Our aim is to have efficient digital services and satisfied customers
UNEMPLOYMENT INSURANCE CONTRIBUTIONS
WERE PAID BY
employers and other parties
liable to pay them
142,347
AMOUNT OF UNEMPLOYMENT INSURANCE
CONTRIBUTIONS COLLECTED
CUSTOMER SATISFACTION
(CSAT)
79%
CUSTOMER CONTACTS FOR UNEMPLOYMENT
INSURANCE CONTRIBUTIONS (PCS)
57,757
Website visits
12,773
Phone calls
2,001
Calculators
were used
33,616
Emails
49,442
Logins to
online service
4,158
Messages in
online service
2,773 million
NUMBER OF UNEMPLOYMENT INSURANCE
DECISIONS
528,148 pcs
All figures are from the period 1 January – 31 December 2022
TRAINING COMPENSATIONS WERE
REFUNDED TO
591 employers
and they
totalled
EUR 8.8 million
NUMBER OF CASES FOR SUPERVISION
Decisions based on
supervision
978 pcs
640 pcs
of which
98.4%
were automated
decisions
EUR
1,424
were paid by employees
EUR
million
1,349
were paid by employers
EUR
million
Uncollected contributions
accounted for
0.2%
of the total
times
Unemployment insurance contributions
24Report of the Board of Directors 2022
Employment Fund grants
and pays adult education
allowance and scholarships for
professional capabilities as well
as competence development.
Adult education allowance is granted
by Employment Fund to entrepreneurs
and employees for full-time or part-
employees are granted to persons that have
received vocational upper secondary level
education or received specialist vocational
allowance from the unemployment
insurance contributions that we have
collected. The state is responsible for
for entrepreneurs and scholarships for
government.
In 2022, Employment Fund paid EUR 189
million in adult education allowances and
increased by about 1.8% compared to 2021.
ADULT EDUCATION ALLOWANCE
TO SUPPORT VOCATIONAL
COMPETENCE DEVELOPMENT
Adult education allowances have been
granted since 2001. Employees and
entrepreneurs who have been working for
at least eight years may apply for adult
education allowance. The allowance is
intended for maintaining and developing
professional competence and may be
granted for studies conducted under public
oversight in Finland. These studies may
lead to a full degree, a partial degree or be
further or continuing vocational training.
25Report of the Board of Directors 2022
MORE AND MORE PEOPLE
COMBINE WORK AND STUDIES
Under the current legislation on adult
education allowance, which entered into
force on 1 August 2020, there is more
and studies. More and more recipients of
adult education allowance work alongside
studies. According to our statistics, about
14% (11%) of the recipients used this
opportunity in 2022. This means that the
number of recipients reconciling work and
studies is increasing.
ADULT EDUCATION ALLOWANCE
HAS BECOME MORE POPULAR
In 2022, a total of EUR 177.9 (175.3) million
in adult education allowance was paid to
30,124 (28,322) persons. The amount paid
was about 1.5% higher than in 2021. Of the
recipients, 811 received entrepreneurs’ adult
education allowance and 29,313 received
employees’ adult education allowance.
The persons that received adult education
allowance under the act entering into force
on 1 August 2020 accounted for 90.3% of all
More and more recipients of adult education
allowance work alongside studies.
persons
EUR
million
Number of recipients and
adult education allowances paid
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
200
180
160
140
120
100
80
60
40
20
0
2018 2019 2020 2021 2022
Number of recipients based on
the old legislation, persons
Number of recipients based on
the new legislation, persons
Adult education allowances paid,
EUR million
24,848
22,393
25,701
18,443
4,673
27,210
9,879
2,914
173.5
176.6
186.9
175.3
177.9
26Report of the Board of Directors 2022
Traditionally, most of the recipients of adult
education allowance have been women aged
under 40. There was no change in the gender
distribution in 2022: 76% of the recipients were
women and 24% men.
The age distribution of the recipients also
remained unchanged. The breakdown of the age
groups (from the largest to the smallest) was as
follows:
• 30–39, 51.1%
• 40–49, 31.1%
• over 50, 11.6%
• under 30, 6.2%.
In 2022, about 45% (43%) of the recipients studied
in universities of applied sciences, 26% (28%) in
vocational institutions, 26% (26%) in universities
and 3% (3%) in other education institutions.
The majority of the recipients (82.9%) used the
adult education allowance for education leading
to a degree. A total of 13.8% of the recipients used
the allowance for studies leading to a partial-
degree or further or continuing vocational
training, and 3.3% used it for other training.
Recipients of adult education allowance by age in 2022
Recipients of adult education allowance by gender in 2022
Men: 24%
Women: 76%
30–34 years: 26.3%
35–39 years: 24.8%40–44 years: 18.7%
45–49 years: 12.4%
25–29 years: 6.2%
50–54 years: 7%
Aged 55 or over: 4.6%
27Report of the Board of Directors 2022
welfare, healthcare and sports, 33%
(33.6% ) and social sciences, business and
administration, 18.5% (18.3%). They were
followed by technology and transport, 15.6%
(15.4%) and humanities and education 14.4%
(13.9%).
40
35
30
25
20
15
10
5
0
Social welfare,
healthcare
and sports
Social sciences,
business and
administration
Humanities
and education
Technology
and
transport
Culture Natural
resources and
environment
Tourism,
hospitality and
business
Natural
sciences
Other
education
General
education
%
2018
2019
2020
2021
2022
28Report of the Board of Directors 2022
ALMOST ONE THIRD OF ALL APPLICANTS
FOR ADULT EDUCATION ALLOWANCE
WORKED IN PUBLIC ADMINISTRATION
In terms of employment, persons working
in public administration and national
defence were the largest group using the
adult education allowance. They accounted
proportion of applicants working in these
sectors has increased by 14.2% over the past
and social services and wholesale and
retail trade were the next largest group
There has been a steady decline in the
proportion of persons working in the
education sector. In 2022, they accounted
for 3.7% of all applicants (compared to 9.2%
NUMBER OF APPLICATIONS
AT RECORD LEVELS
The application procedure for employee’s
adult education allowance is a two-step
process. Based on the initial application,
the applicant receives eligibility for adult
in the application. After receiving a decision
on their initial application, the applicant
can apply for an allowance payment
retrospectively for each month. If the
applicant wants to work between their study
leave periods and thus spread the studies
over a longer period, a separate extension
application for new allowance periods must
be submitted to Employment Fund.
30
25
20
15
10
5
0
Public
administration,
national
defence and
mandatory
social insurance
Healthcare and
social services
IndustryWholesale and
retail, motor
vehicle and
motorcycle
repair
Professional,
technical
activities
Education Transportation
and storage
Administration
and support
services
Accommodation
and food service
activities
Other
%
2018
2019
2020
2021
2022
29Report of the Board of Directors 2022
A record number of applications was
submitted in 2022. We received 33,615
initial and extension applications for adult
education allowance and 133,689 payment
applications. The highest number of
initial and extension applications (3,612)
was received in August, which has been
the busiest month for initial applications
for many years. November (14,874) and
December (15,270) are the busiest months
for payment applications. The number of
applications received in November and
December 2022 were at record levels. In
2022, the average processing time for initial
applications was 17.1 (17.3) days and for
payment applications 0.8 (1.1) days.
HIGHER AUTOMATION LEVEL IMPROVED
SERVICE CAPACITY, ESPECIALLY
AT THE TURN OF THE MONTH
Most of the payment applications (about
80%) for adult education allowance are sent
of each month causing a major application
backlog. To ensure smooth service, we
Applications for adult education allowances
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
January February AprilMarch May June AugustJuly September October November December
Number
2021 2022
30Report of the Board of Directors 2022
have focused on automating the payment
application process in recent years. In
2022, we issued 103,953 (54,992) automated
decisions, which accounted for 78% (63%)
of all our payment decisions. With a higher
level of automation, we are now able to
manage the peaks at the turn of the month
much better than in the past, which has
also improved the customer experience.
SCHOLARSHIPS FOR QUALIFIED
EMPLOYEES ON THE BASIS OF A
VOCATIONAL QUALIFICATION
employees were granted in 1996. A person
residing in Finland is eligible for the
scholarship if they have completed a
under 68 years of age, and have been
2022.
31Report of the Board of Directors 2022
A SLIGHT RISE IN THE POPULARITY
OF THE SCHOLARSHIP FOR
QUALIFIED EMPLOYEES
employees to 27,755 (25,949) persons in
2022. We issued 27,678 (26,257) approvals
and paid a total of EUR 11.5 (10.4) million in
scholarships on their basis. The total paid
in euros increased by 10.6% from 2021.
The application for the scholarship can be
submitted after graduation and therefore
often at the end of the semester. In 2022,
the highest number of applications
was received in June (5,367), December
(3,857), and May (3,500). The number of
applications received during these three
months accounted for 37% of the total
number of applications received during
the year. The average processing time for
scholarship applications was 9.9 (6.5) days
in 2022.
About 43% (44.6%) of the scholarships were
granted on the basis of a further vocational
and 26% (25.6%) on the basis of a specialist
by scholarship recipients were a further
work 9.1% (8.7%), vocational upper
and healthcare 9.1% (7.9%), and a specialist
and leadership 7.7% (7.8%). A substantial
majority, 64%, of the scholarship recipients
were women.
We also partially automated the processing
software robotics to automate our
processes. We started using the robotic
application in August 2022 and between 23
August and 31 December, the software robot
issued a total of 3,296 automated decisions
which was 12% of all approvals in 2022.
Approvals and scholarships paid
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022
Number
EUR
million
Approvals, pcs
Scholarships paid, EUR million
30,274
26,187 26,511 26,257
27,678
12.2
10.5
10.6
10.4
11.5
32Report of the Board of Directors 2022
APPEALS AND RECOVERY OF BENEFITS
PAID WITHOUT JUSTIFICATION
the outcome of their application for
adult education allowance have the right
appellate body is the Social Security Appeal
body is the Insurance Court. In 2022 we
forwarded 288 (275) complaints to the
Social Security Appeal Board and 17 (20)
complaints to the Insurance Court. The
complaints mainly concerned the recovery
into account additional income based on
their time of payment.
high we will recover the excess from the
recovery decisions in 2022.
DEVELOPMENTS IN THE PROCESSING
OF ADULT EDUCATION BENEFITS
services on the basis of customer feedback
and customer experience surveys. The
purpose was to shorten processing times
and streamline the services. The focus
in the improvements was on the online
service, which was the most popular
service channel among our customers in
2022. The messaging functionality and the
application form functionalities were two
of the online service components where
improvements were made.
We also produced a separate website for
the adult education allowance. The website
aikuiskoulutustuki.fi was launched in
April 2022. The purpose of the website is to
provide a clearer structure for the advice
on adult education allowance and in this
manner facilitate the application process
and improve the customer experience.
We are systematically developing the
website on the basis of customer feedback.
In 2022, we organised several webinars
institutions, in which matters concerning
of applying for them were discussed. Each
event attracted about 50 participants
and according to the feedback, they
were considered useful. We also posted
instructional videos on our website
to facilitate the application process.
In autumn 2022, we launched a series
of videos on our YouTube channel on
current phenomena concerning the
implementation of adult education
allowance and continuous learning.
33Report of the Board of Directors 2022
CUSTOMER CONTACTS FOR ADULT
EDUCATION ALLOWANCE (PCS)
30,124
persons of whom
97.3% were employees
and 2.7% entrepreneurs
ADULT EDUCATION ALLOWANCES
WERE GRANTED TO
NUMBER OF ADULT EDUCATION ALLOWANCE DECISIONS
FOR EMPLOYEES
33,942 pcs
Initial decisions
133,756 pcs
Payment decisions
17 days
Average
processing time
1 day
Average
processing time
NUMBER OF ADULT EDUCATION ALLOWANCE DECISIONS
FOR ENTREPRENEURS
952
13 days
Average
processing time
1,107,633 36,254
202,402 14,089
689,752 64,592
Aiming for efficient digital services and customer satisfaction
CUSTOMER SATISFACTION
(CSAT)
74%
Website visits Phone calls
Calculators
were used Emails
Logins to online
service
Messages in
online service
78%
of all decisions were
automatic decisions
decisions
times
All figures are from the period 1 January – 31 December 2022
34Report of the Board of Directors 2022
Finance
Finance
NET POSITION OF THE BUSINESS CYCLE
BUFFER NOW SIGNIFICANTLY STRONGER
As required under the law, Employment
Fund maintains a business cycle buffer to
unemployment insurance contributions. The
business cycle buffer accrues on the basis of the
difference between Employment Fund’s income
and expenses. The maximum amount of the
buffer corresponds to the annual expenses for
an unemployment rate of six percentage points.
During times of severe economic downturn, the
business cycle buffer may be on the liabilities
side, up to the amount corresponding to the
same expenditure.
The maximum value of the buffer is calculated
by dividing the annual expenses for which
Employment Fund is liable (EUR 2,118 million in
2022) by the average unemployment rate for the
year (6.8%), and multiplying the result by six.
2018 2019 2020 2021 2022
10
9
8
7
6
5
4
3
2
1
0
Employer payment
Employee payment
Unemployment rate
Unemployment insurance contribution rates
and unemployment rate
%
1.90%
3.81%
3.00%
2.50%
2.82%
3.01%
1.50%
1.25%
1.40%
1.42%1.25%1.50%1.91%
7.7%
6.7%
7.4%
7.7%
1.50%
1.51%
6.8%
35Report of the Board of Directors 2022
In 2022, the maximum permitted value of
Employment Fund’s net position totalled
EUR 1,258 (633) million at the end of 2022.
According to the investment principles
approved by the Supervisory Board,
Employment Fund must have liquid
investments in money market instruments
with less than a year’s maturity in an
amount that covers one month of the
Fund’s expenses. This amount is about
buffer described above was 2.6 times the
minimum amount in 2022.
According to the 2023 budget submitted to
the Ministry of Social Affairs and Health,
the Fund’s net position will amount to
EUR 1,447 million on 31 December 2023.
were prepared, we estimated that our net
position at the end of 2023 would be about
Finance
Development of the business cycle buffer
2,500
2,000
1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
EUR
million
2018 2019 2020 2021 2022
Net position Maximum amount Minimum amount
2,032
2,062
2,078
2,220
1,868
969
1,668
1,045
633
1,258
-2,032
-2,062
-2,078
-2,220
-1,868
36Report of the Board of Directors 2022
DEBT FINANCING
Employment Fund has two bonds, each
worth EUR 600 million, issued in 2020,
which are due on 16 June 2023 and 16 June
2027. The Fund also has revolving credit
facilities (RCF) worth EUR 600 million,
agreed with four banks in 2022. The
revolving credit facilities were not utilised
during 2022.
In 2022, Employment Fund implemented a
debt servicing plan by issuing commercial
papers with a value of EUR 100 million to
about to mature.
The credit rating agency S&P Global
Ratings has given Employment Fund a
credit rating of AA+ (stable outlook)/A-1+.
S&P Global Ratings has given the same
rating to the State of Finland.
Finance
The revolving credit facilities were not utilised during 2022.
Change in net position
1,000
800
600
400
200
0
-200
-400
-600
-800
2018 2019 2020 2021 2022
EUR
million
-623
-412
625
694
872
37Report of the Board of Directors 2022
Investment activities
Investment activities
Employment Fund carries out
investment activities to the
extent necessary to manage the
timing differences in the cash
and expenses, and for liquidity
management purposes.
We manage our investment activities on
the basis of the investment principles
approved by the Supervisory Board, and
the investment plan set by the Board of
Directors. Employment Fund’s investment
(1,339) million at the end of 2022.
FINANCIAL OPERATING ENVIRONMENT
The economic slowdown, which had
started in 2021, continued during 2022,
prices. The Russian invasion of Ukraine in
February 2022 rapidly weakened Europe’s
security of supply for various energy
commodities and increased their prices
sharply. Consumer prices rose at a rapid
rate in Finland and elsewhere in Europe
and the same trend was also seen in other
markets. Central banks started to raise
their key interest rates and announced
was a prime goal. These measures had a
investments declined during 2022.
Despite a weakening economy, there was
further improvement in the employment
situation in Finland and the same trend
also continued elsewhere in Europe and in
the United States. Unemployment declined
steadily during 2022, averaging 6.8%, which
is the same level that was recorded in 2019
before the coronavirus pandemic.
INVESTMENT MARKET
The stagnation affecting the investment
market was broad-based in 2022 as most
asset classes generated negative returns. In
rates led to extremely weak returns, and
the trend was heightened by rising credit
risk margins. There were also falling
38Report of the Board of Directors 2022
share prices and negative returns in the
stock market. In contrast to above, returns
in alternative asset classes improved.
However, their returns also gradually
weakened towards the end of the year.
ASSET ALLOCATION
We invested assets actively in money
market instruments, bonds, funds, and
equities as well as alternative investments.
The weight of alternative investments was
increased in the investment plan for 2022.
1,098 (721) million of the Fund’s assets were
invested in money market instruments,
EUR 669 (534) million in bonds, EUR 36 (38)
million in equities, and EUR 75 (43) million
in alternative investments.
In 2022, the return on our investments was
-2.9% (0.7%). The return was lower than the
expectation entered in our investment plan
and the reference return on our investment
activities.
The investment plan for 2023 was approved
by Employment Fund’s Board of Directors
on 29 November 2022. As part of the plan,
it was decided to increase the proportion of
to make a number of other changes to the
allocation of funds.
Investment activities
Return on investments
3
2
1
0
-1
-2
-3
-4
2018 2019 2020 2021 2022
%
0.1
Return on investments
Reference rate of return
Asset allocation
Money market: 58%
Alternative investments: 4%
Shares: 2%
Bonds: 36%
-2.8
-2.9
0.7
0.5
-0.7
1.9
0.8
-0.6
-0.1
39Report of the Board of Directors 2022
RESPONSIBLE INVESTMENT
Responsibility in our investment activities
means that we take responsibility into
account in our investment decisions.
When we make investment decisions, we
take environmental, social and governance
(ESG) factors into consideration in
the exception of index investments,
we integrate ESG factors into all our
investments insofar as is possible.
We do our part to ensure that ESG
factors are taken into consideration by
commissioning an external party to review
our investments two times per year and
report any deviations.
We exclude companies whose operating
methods are considered irresponsible with
regard to factors such as corruption, child
labour, employees’ rights and human rights
from our list of potential investments.
Furthermore, we invest in companies
that comply with the UN Global Compact
wherever possible.
Numerical assessment methods are used
to monitor and analyse the responsibility
of Employment Fund’s investments.
The goal is to provide a picture of the
development as comprehensively and
diversely as possible. Similar metrics have
been used for monitoring since 2019.
The responsibility analysis includes
a review of operational responsibility
metrics for the investment items and
the companies behind them, such as
commitment to equality, good governance,
and the development of variables used to
measure environmental impact.
Investment activities
We take responsibility matters
into account when making
investment decisions.
40Report of the Board of Directors 2022
According to the summary of the
latest analysis (covering the year 2022)
produced by the asset management
company commissioned to evaluate the
responsibility of our investments, our
environmental footprint is at a good level
both in absolute terms and in relation to
the responsibility of our investments have
been at excellent level already since 2019.
Compared to the previous analysis, there
weight for high-emission companies and
in the portfolio. It is also noted in the
summary that the social and governance
the benchmark indices.
According to the asset management
company, our investment portfolio is also
the Paris Agreement.
Investment activities
Finland Government Bond
Danske Bank Bond
OP Corporate Bank deposit
German Government Bond
OP Corporate Bank Bond
SEB Bond
0 20 40 60 80 100 120
Largest investments
EUR million
EUR 98.9 million
EUR 79.3 million
EUR 73.0 million
EUR 69.6 million
EUR 69.2 million
EUR 60.1 million
EUR 50.0 million
EUR 49.4 million
EUR 44.2 million
EUR 43.2 million
41Report of the Board of Directors 2022
Risk management
Risk management
At Employment Fund, risk
management is part of internal
control.
The internal control procedures and
methods used by Employment Fund ensure
that the Fund’s Board of Directors and
access to reliable and adequate operational
information and enough information on
the lawfulness of the operations to support
their decision-making.
Risk management measures enable
Employment Fund to identify, analyse
and manage the threats and opportunities
related to its operations and objectives.
We review Employment Fund’s risk
management principles each year and
they are approved by the Fund’s Board of
Directors. Employment Fund has a full-time
risk manager who supports and advises
and management of risks in accordance
with the risk management principles.
The risk management situation picture is
reported to the Fund’s Board of Directors,
audit committee and the Managing
Director on a regular basis. Systemic risk
management ensures that the risks taken
by Employment Fund are proportionate to
the Fund’s objectives and the risk appetite
principles.
With the help of comprehensive risk
management, we can ensure that all
an appropriate manner. Cyber risk
management is an important part of
Employment Fund’s information security
and IT strategy. As part of its risk
management, Employment Fund assesses
and manages strategic risks that may
impact the achievement of the Fund’s
objectives or the implementation of its
strategy. The purpose of the compliance
function is to ensure that Employment
Fund complies with existing regulation,
external instructions binding on the Fund
and the Fund’s own internal guidelines. The
focus is on preventive activities.
42Report of the Board of Directors 2022
Personnel
Personnel
At the end of 2022, the number of
personnel was 167 (151). In person-years,
the average number of personnel was 147
(132).
In 2022, the average number of employees
was 169 (164) and the Fund paid EUR
8,571,589 in salaries and EUR 44,346 in
a compensation system based on the
complexity of work, and a bonus system
that supports the achievement of the
Fund’s strategic objectives.
Men accounted for 54 (46) and women
for 113 (105) of the personnel. The average
employee age was 41 (41) years, and
the average duration of employment
at Employment Fund was 5.9 years.
Employment Fund’s Managing Director is
Janne Metsämäki, LL.M.
Number of personnel
in Employment Fund 2021–2022
200
175
150
125
100
75
50
25
0
30 Jun
2021
31 Dec
2021
30 Jun
2022
31 Dec
2022
Persons
45
40
35
30
25
20
15
10
5
0
20–29 30–39 40–49 50–59 60–
Age and gender distribution of
personnel in 2022
Persons
Men Women
24
39
13
25
8
24
6
< 5
< 5
22
170
151
174
167
43Report of the Board of Directors 2022
JOB SATISFACTION IMPROVED
Promoting and constantly monitoring
employee wellbeing are key priorities at
Employment Fund. We examined employee
wellbeing in an extensive personnel survey
in spring 2022 and in pulse surveys on a
quarterly basis. The results showed that our
opportunities offered by the Fund and that
in their view, the feedback culture in the
Fund has improved.
Job satisfaction has increased compared
to previous year’s results, especially in
performance and dedication to work. Our
People Power index for 2021 was 63.8, and
in spring 2022 it had risen to 68.3. The
average rate of absence due to illness was
12.76 (10.02) days per person.
During 2022, we changed over from
full-time remote work to hybrid work,
which has resulted in more face-to-face
premises. Under the Fund’s hybrid model,
employers work on average one day at
work, providing better facilities for work
requiring concentration and quiet, and for
communal activities and workshops. In
addition to good personnel experience, the
make the Fund a more responsible actor.
Personnel
44Report of the Board of Directors 2022
WE DEVELOPED OUR
OPERATING PRACTICES
Our work to update and develop the
organisation continued during 2022.
Measures were taken to improve the
working practices of the Management
Group during the year and its meetings
themes, such as performance meetings,
development meetings and meetings of the
project portfolio management group. At the
end of 2022, we established the extended
Management Group, which also has a
personnel representative as its member.
In 2022, the focus in the training was on
strengthening customer experience skills,
effective communication, data protection,
information security, overall security
and improving accessibility competence.
online learning environment of an external
partner. We want to ensure that each Fund
employee has the opportunity to learn at
work and to develop their professional
skills on a continuous basis so that we can
provide our customers with high-quality
services. The average number of training
days per person was 1.42 (2.33).
Personnel
The work to update and develop our
organisation continued during 2022.
45Report of the Board of Directors 2022
A glimpse into 2023
A glimpse into 2023
There was a slight rise in
the number of unemployed
jobseekers in early 2023. As
economic growth has slowed
down and is now close to
zero, many companies have
announced that they will start
change negotiations with their
personnel. There is now more
uncertainty about employment
trends.
high. Central banks are expected to further
tighten the monetary policy and key interest
rates will probably increase during the early
part of 2023. Economic growth in the near
growth below the baseline projection may
Economic growth in Finland is expected
to slow down even though the outlook for
Europe has become more positive in recent
months. Wage bill trends and purchasing
power will be crucially impacted by the
ongoing labour market negotiations on
the new collective agreements. A slight
reduction in total output is expected,
Fluctuations in capital markets have
returned to relatively moderate levels and
investments have recovered from the
lowest levels experienced in 2021.
Even though the economic operating
early part of 2023, the outlook for Employment
Fund at the time of the preparation of the
the budget for 2023. Our estimate in August
was that the gradual slowdown of the Finnish
unemployment security expenditure during
the last months of 2022. However, as a result
of the improvements in the employment
situation during the last months of 2022,
the total amount of the contributions paid
by Employment Fund during the year will
remain lower than previously estimated.
Strong wage bill growth in 2022 has also
basis.
46Report of the Board of Directors 2022
We expect a slight rise in unemployment
during 2023 and a fall in the employment
year. Our estimate is that the change in
our net position in 2023 would be positive
to the amount of about EUR 560 million
(budgeted amount EUR 380 million) and
that our net position at the end of the year
would be about EUR 1,820 million (budgeted
amount EUR 1,447 million).
We will continue to develop our activities,
focusing on better customer experience,
more extensive automation and higher
strategy and the changes in our operating
environment will be taken into account in
the process.
A glimpse into 2023
We will continue to
develop our activities,
focusing on better
customer experience,
more extensive
automation and
47Report of the Board of Directors 2022
Corporate governance
Corporate governance
The corporate governance statement
of Employment Fund for 2022 has been
prepared in accordance with the Securities
Market Act and the recommendation on
reporting contained in the Finnish Corporate
Governance Code for Listed Companies,
COMPLIANCE WITH THE FINNISH
CORPORATE GOVERNANCE CODE
2020 AND DEVIATIONS FROM
THE RECOMMENDATIONS
Employment Fund is an independent
statutory agency supervised by the
Financial Supervisory Authority.
Employment Fund has issued bonds quoted
on Nasdaq OMX Helsinki Ltd, which will
mature in 2023 and 2027. Employment
Fund has a commercial paper programme
of EUR 300 million under which
commercial papers with a nominal value
of EUR 100 million had been issued in the
domestic money market by 31 December
2022.
Employment Fund conducts its operations,
where applicable, in compliance with
the Finnish Corporate Governance
Code, which is publicly available on the
Securities Market Association’s website
().
The operations of Employment Fund and the
responsibilities of its organs are based on
the Act on the Financing of Unemployment
(1176/1998) and the Decree on the Rules of
Procedure of Employment Fund (862/1998).
Due to Employment Fund’s form of activity
and background, its operations differ from
the Finnish Corporate Governance Code on
the following recommendations:
• Recommendations 1, 2, 3 and 4:
Employment Fund is not a limited
liability company and its most senior
decision-making body is not a general
meeting or similar organ as this task
is carried out by the Supervisory
Board appointed by the Government,
in accordance with the Decree on the
Rules of Procedure of Employment
Fund (862/1998). The Decree contains
provisions on matters to be decided
in the meetings of the Supervisory
Board and the related procedures as
well as the notice of the meeting. For
this reason, the recommendations
concerning the general meeting, notice
of the general meeting, proposals for
decisions, initiatives of the shareholders,
attendance at the general meeting and
documents discussed at the general
meeting are not directly applicable to the
operations of Employment Fund.
• Recommendations 5, 6, 7, 8 and 9:
Employment Fund’s Supervisory
Board elects the members of the Board
of Directors in accordance with the
principles set out in the Decree on the
Rules of Procedure of Employment
Fund (862/1998). Under the Decree,
48Report of the Board of Directors 2022
the Supervisory Board approves the
appointment of the members, chair
and vice chair of the Board of Directors
for the following calendar year. Seven
of the Board of Directors’ members
represent employer organisations and
seven are employee representatives.
For this reason, the recommendations
concerning the election, term of
independence of the members of the
Board of Directors are not applicable to
Employment Fund’s operations.
• Recommendations 10 and 19:
Employment Fund’s Supervisory
Board elects the members of the Board
of Directors in accordance with the
principles set out in the Decree on the
Rules of Procedure of Employment Fund
(862/1998). Employment Fund has no
shareholders or similar owners, and
thus there is no evaluation of whether
the Board of Directors or management is
Likewise, the recommendation
concerning the shareholders’ nomination
committee is not applicable.
• Recommendations 16, 17 and 18:
The regulations governing Employment
Fund’s operations do not impose
an obligation to establish special
committees. Therefore, the Fund does
not have any committees, other than
an audit committee. As Employment
Fund is not a limited liability company,
the audit committee does not evaluate
the independence of its members of
• Recommendation 21:
Under the Decree on the Rules of
Procedure of Employment Fund, the
Supervisory Board elects the members
of the Board of Directors, and the Board
of Directors elects the chair from among
its members (in alternating years
from among the representatives of the
employers or employees) and thus the
recommendation on the restriction
concerning the Managing Director is not
applicable.
• Recommendation 22:
The Ministry of Social Affairs and
Health decides on the remuneration
for meetings of the Supervisory
Board members and the principles of
compensation for travelling expenses.
The Supervisory Board decides on the
remunerations of the Board of Directors
members. The Board of Directors
decides on the remuneration and the
terms and conditions of the service
contract of the Managing Director as
well as the principles of remuneration
for other management staff.
• Recommendation 23:
Employment Fund has no shareholders
or similar owners, and thus the
recommendations concerning shares
and share-based remuneration for the
members of the Board of Directors are
not applicable.
• Recommendation 27:
Employment Fund is not a limited
liability company and thus the regulation
on related-party transactions is not
applicable to Employment Fund’s
operations within the meaning of the
Finnish Corporate Governance Code.
However, Employment Fund complies
with IFRS standards and monitors related-
party transactions as described below.
Corporate governance
49Report of the Board of Directors 2022
SUPERVISORY BOARD
Under the Decree on the Rules of
Procedure of Employment Fund (862/1998),
Employment Fund’s most senior decision-
making body is the Supervisory Board,
which has between 10 and 18 members.
Half of the members represent employers
and the other half represent employees.
The term of the members of Employment
Fund’s Supervisory Board is three calendar
years.
On 22 October 2020, on the proposal of
the Ministry of Social Affairs and Health,
the Government appointed the members
of Employment Fund’s Supervisory
Board for the term 1 January 2021–31
December 2023. A total of 18 members
were appointed to the Supervisory Board.
Six of the members were appointed on the
proposal of the Confederation of Finnish
Industries (EK), three on the proposal of the
Local Government and County Employers
(KT), three on the proposal of the Central
Organisation of Finnish Trade Unions
(SAK), three on the proposal of the Finnish
Confederation of Professionals (STTK) and
three on the proposal of the Confederation
of Unions for Professional and Managerial
Staff in Finland (Akava). In 2022, the
Government appointed two new members
to the Supervisory Board for the rest of the
current term (until 31 December 2023).
The Supervisory Board elects from among
its members a chair and a vice chair for
one calendar year at a time, one of whom
is an employer representative and the
other one an employee representative.
The chairmanship is held in turn by
representatives of employers and
employees, alternating annually. In 2022,
the Supervisory Board was chaired by Antti
Zitting.
Corporate governance
50Report of the Board of Directors 2022
Meeting practice and access to information
The ordinary meeting of the Supervisory
Board is held twice a year, in the spring
before the end of May and in the autumn
no later than in October. An additional
meeting of the Supervisory Board is held
whenever the chair of the Supervisory
Board or the Board of Directors deems it
necessary, or when at least two members
of the Supervisory Board request in writing
that an additional meeting be held for a
of the meeting must be delivered in a
Supervisory Board no later than eight days
before the meeting.
The meeting of the Supervisory Board
constitutes a quorum when the chair
or the vice chair and at least half of the
members are present. Those present must
include both employer and employee
representatives. The decisions
of the Supervisory Board are
based on a simple majority.
In the event of a tie, the
decision is based
on the opinion supported by the chair of
the meeting. In the event of an election in
which the voting ends in a tie, the result
is decided by drawing lots. If the question
concerns a proposal for unemployment
insurance contributions and the voting
ends in a tie, the opinion supported by both
the chair and the vice chair becomes the
decision.
The Supervisory Board elects the chair
and the vice chair of the Supervisory
Board for one calendar year at a time. One
must be an employer representative and
the other an employee representative.
The chairmanship is held in turn by
representatives of employers and
employees, alternating annually.
In 2022, the Supervisory Board met
three times. One of the meetings was
held remotely via email. No separate
remuneration is paid for meetings held via
email.
Corporate governance
51Report of the Board of Directors 2022
The members of the Supervisory Board in 2022 were:
Name
Year of
birth Education Main occupation
Attendance at
meetings of the
Supervisory Board
Antti Zitting, Chair 1956 Master of Science (Technology) Chairman of the Board, Sacotec Oy 3/3
Jari Jokinen, Vice Chair 1967 Master of Science (Technology) Executive Director, Tekniikan Akateemisten Liitto TEK ry 3/3
Riku Aalto 1965 Master of Administrative Sciences President, Industrial Union 2/3
Teija Asara-Laaksonen
(until 23 August 2022) 1957 secondary school graduate
Vice President,
Trade Union for the Public and Welfare Sectors, JHL ry 1/3
Jorma Haapanen
(until 8 July 2022 ) 1964
Master of Agriculture and
Forestry Sciences
Preparation Director,
Western Uusimaa Wellbeing Services County 1/3
Teemu Kokko 1961
Doctor of Science (Business
Administration)
Managing Director,
Haaga-Helia University of Applied Sciences 3/3
Antti Korpiniemi 1961
Master of Agriculture and
Forestry Sciences CEO, Berner Ltd 2/3
Tomi Lantto 1970 Master of Economic Sciences CEO, Antell 3/3
Kirsi-Marja Lievonen 1962 Licentiate of Laws trained on the bench HR Director, City of Vantaa 2/3
Petri Lindroos 1965 Master of Education Director of Negotiations, Trade Union of Education in Finland, OAJ ry 3/3
Salla Luomanmäki 1963 Master of Arts Executive Director, Akava Special Branches, AE ry 3/3
Jorma Malinen 1959 Automation Designer President, Trade Union Pro ry 2/3
Matti Mettälä 1963 Master of Laws trained on the bench EVP, Kesko Corporation 3/3
Taina Niiranen 1966 Master of Administrative Sciences HR Director, Pirkanmaa Wellbeing Services County 2/3
Olli Nikula 1967 Master of Economic Sciences CEO, Saint-Gobain Finland Ltd 3/3
Silja Paavola 1956 Auxiliary Nurse Chair, The Finnish Union of Practical Nurses, SuPer ry 2/3
Juha Rostedt
(from 8 July 2022) 1963 Trade Technician
Vice Chair,
Local Government and County Employers KT 2/3
Saila Ruuth
(from 23 August 2022) 1981 Master of Political Science
Vice President,
Trade Union for the Public and Welfare Sectors, JHL ry 1/3
Millariikka Rytkönen 1975 Midwife-nurse, Master’s degree Chair, Union of Health and Social Care Professionals in Finland, Tehy ry 1/3
Annika Rönni-Sällinen 1976 Master of Laws Chair, Service Union United, PAM ry 2/3
Corporate governance
52Report of the Board of Directors 2022 Corporate governance
BOARD OF DIRECTORS
Under the Decree on the Rules of
Procedure of Employment Fund (862/1998),
Employment Fund must have a Board of
Directors composed of 14 members. The
members are nominated by the Supervisory
Board and seven of the members must be
representatives of employer organisations
and seven employee representatives.
The Board of Directors must have a
chair and vice chair, one of whom must
be an employer representative and the
other one an employee representative.
The chairmanship is held in turn by
representatives of employers and
employees, alternating annually.
The Board of Directors constitutes a
quorum when the chair or the vice chair
and at least seven other members are
present. Those present must include both
employer and employee representatives.
The decisions of the Board are based on a
simple majority. In the event of a tie, the
decision is based on the opinion supported
by the chair of the meeting.
The Board of Directors is responsible for
Employment Fund’s administration and
the proper organisation of its operations.
The Board of Directors follows the
development of Employment Fund with
the help of monthly reports and other
information delivered by the management.
The key tasks and operating principles
of Employment Fund’s Board of Directors
are set out in the Decree on the Rules of
Procedure of Employment Fund (862/1998)
and in the Board’s written rules of
procedure. The Board carries out a self-
assessment of its activities each year.
53Report of the Board of Directors 2022
The members of the Board of Directors in 2022 were:
Name
Year of
birth Education Main occupation
Attendance at
meetings of the
Board of Directors
Saana Siekkinen, Chair 1972 Master of Social Sciences President, Central Organisation of Finnish Trade Unions, SAK ry 10/11
Markku Jalonen, Vice Chair 1960 Licentiate of Social Sciences Managing Director, Local Government and County Employers KT 11/11
Tuomas Aarto 1973 Master of Laws trained on the bench Director General, Management, Service Sector Employers, Palta ry 11/11
Jarkko Eloranta
(from 13 September 2022) 1966 Master of Political Science
President,
Central Organisation of Finnish Trade Unions, SAK ry 1/11
Minna Etu-Seppälä 1972 Master of Laws trained on the bench Director, Chemical Industry Federation of Finland, KT ry 10/11
Sture Fjäder 1958 Master of Economic Sciences
President, Confederation of Unions for Professional
and Managerial Staff in Finland, Akava ry 9/11
Riikka Heikinheimo 1963 Doctor of Philosophy Director, Confederation of Finnish Industries, EK 11/11
Minna Helle 1971 Master of Laws Deputy CEO, Technology Industries of Finland 11/11
Ilkka Kaukoranta
(until 3 September 2022) 1986 Master of Political Science
Chief Economist,
Central Organisation of Finnish Trade Unions, SAK ry 7/11
Patrizio Lainà 1985
Doctor of Political Science,
Master of Economic Sciences
Chief Economist,
Finnish Confederation of Professionals, STTK ry 9/11
Henrika Nybondas-Kangas 1974 Master of Laws trained on the bench Chief Negotiator, Local Government and County Employers KT 11/11
Antti Palola 1959 Sea Captain Chair of the Board, Finnish Confederation of Professionals, STTK ry 11/11
Vesa Rantahalvari 1967 Master of Administrative Sciences Senior Expert, Confederation of Finnish Industries, EK 10/11
Heikki Taulu 1973 Master of Social Sciences
Economist, Confederation of Unions for Professional
and Managerial Staff in Finland, Akava ry 10/11
Pirjo Väänänen 1971 Master of Social Services
Head of Social Affairs, Central Organisation
of Finnish Trade Unions, SAK ry 11/11
Corporate governance
54Report of the Board of Directors 2022 Corporate governance
Meeting practice and access to information
The Chair convenes the meeting of the
Board of Directors. The notice concerning
the meeting of the Board of Directors must
be delivered to all members in good time
before the meeting in order to ensure that
the members of the Board of Directors
are able to attend the meeting. The Board
of Directors meets 8–12 times each year
and, if necessary, more often. If all the
members approve, the meeting of the Board
of Directors may be held as a telephone
conference or via email in case of urgent
Chair’s duties
The Supervisory Board elects the Chair and
the Vice Chair of the Board of Directors for
one calendar year at a time. In 2022, the
Board of Directors was chaired by Saana
Siekkinen.
The Chair of the Board
• convenes the meetings of the Board of
Directors
• approves the agenda prepared by the
Managing Director for the meetings of
the Board of Directors
• is responsible for ensuring that minutes
are drafted of every meeting of the
Board of Directors
• maintains contacts with the Managing
Director and the members of the Board
of Directors between meetings, if
necessary, and
• is responsible for ensuring that these
rules of procedure are complied with in
the work of the Board of Directors
• approves the invoices of the Managing
Director.
Operations of the Board of Directors
In 2022, the Board of Directors met 11 times.
The Board of Directors also held a strategy
seminar for which no remuneration is paid.
The Board of Directors assesses its own
activities and operating practices as well
as the activities and operating practices
of the audit committee each year. In 2022,
the assessment was carried out as a self-
assessment and its results were discussed
at the Board meeting in December.
55Report of the Board of Directors 2022 Corporate governance
AUDIT COMMITTEE
On the basis of the rules applying to
Employment Fund, the Board of Directors
does not have any permanent committees.
However, it can decide to establish working
groups or committees for the purpose
of assisting the Board of Directors with
the preparation of certain matters falling
within the competence of the Board of
Directors. The Board of Directors has
had an audit committee since 2019. The
members of the audit committee are
appointed by the Fund’s Board of Directors.
Under the audit committee’s rules of
procedure, the committee must have at
least four members, half of whom represent
employees and half represent employers.
The audit committee assists the Board
of Directors. The audit committee has
no decision-making powers but it can
submit proposals and reports to the
Board of Directors on the tasks assigned
to it. The audit committee is primarily
responsible for preparing matters related
management and the selection of auditors.
In 2022, the audit committee met six times.
Audit committee
Attendance at
meetings
Henrika Nybondas-Kangas, Chair 6/6
Heikki Taulu, Vice Chair 5/6
Minna Helle 6/6
Ilkka Kaukoranta
(until 3 September 2022) 4/6
Pirjo Väänänen
(from 27 September 2022) 1/6
One of the meetings was held via email and no
remuneration is paid for these meetings.
56Report of the Board of Directors 2022
MANAGING DIRECTOR
Employment Fund has a Managing Director who is responsible for
the Fund’s management in accordance with the guidelines and
orders issued by the Board of Directors. The Managing Director
is responsible for ensuring that Employment Fund’s accounts
have been arranged in a reliable manner. The Managing Director
must provide the Board of Directors and its members with the
information necessary for the Board of Directors to perform its
duties.
Employment Fund’s Managing Director is Janne Metsämäki, LL.M.
(b. 1960).
MANAGEMENT GROUP
The Management Group supports the Managing Director in
the management of Employment Fund’s operations and in
achieving Employment Fund’s strategic and operational goals.
The Management Group meets on a weekly basis. In addition to
the Management Group, the Managing Director is also assisted
in the management of the Fund’s operations by the extended
Management Group. It meets once a month and has a personnel
representative as its member. The extended Management Group
In 2022, the members of the Management Group were:
Name
Year of
birth
Education Duties/responsibilities
Janne Metsämäki 1960 Master of Laws Managing Director
Tapio Oksanen 1958
Master of Science
in Economics
Virpi Halme 1976 Master of Laws
Director, Technology and
Development
Katja Knaapila, 1966
Master of Business
Administration
Director, HR and
Communication
Tuulikki Saari 1979 Master of Arts
Director, Customer
Relations
Corporate governance
57Report of the Board of Directors 2022
LEGALITY AND COMPLIANCE
OF OPERATIONS
Employment Fund’s operations comply
with the law, the guidelines and regulations
applying to the Fund, and the requirements
of good governance.
INTERNAL CONTROL AND
RISK MANAGEMENT
Employment Fund’s Board of Directors
decides on the criteria for the Fund’s
internal control and risk management,
approves the Fund’s risk management
principles and requires that Employment
Fund’s operations are organised so as to
enable adequate internal control and risk
management across every level of the
organisation and in all its activities. The
principles of Employment Fund’s internal
control and risk management apply to all
functions of the Fund and each employee is
responsible for implementing them.
Corporate governance
Managing Director and Management Group
Audit
and
supervisory
authorities
Operatiivisen
johdon
sisäinen
valvonta
Board of Directors and Audit Committee
Supervisory Board
Internal
control of
operational
management
Internal
control
procedures
Risk
management
Compliance Internal audit
1.
Line of defence
2.
Line of defence
3.
Line of defence
Employment Fund’s internal control is based on a ‘three lines of defence’ model.
58Report of the Board of Directors 2022 Corporate governance
Internal audit
The Board of Directors of Employment
Fund decides on the operating model
and criteria for the Fund’s internal audit.
The Fund’s internal audit operates on the
basis of the plans discussed by the audit
committee and approved by the Board of
Directors. In 2022, the internal audit of
Employment Fund was purchased from
PricewaterhouseCoopers Oy. The Fund’s
internal audit reports on its operations
to the Board of Directors and the audit
committee on a regular basis.
Principles of organising
insider administration
Employment Fund has issued publicly
quoted bonds. Employment Fund complies
with the Market Abuse Regulation (MAR)
and other applicable legislation, insider
guidelines and the rules for issuers of
other instruments of Nasdaq Helsinki
Ltd. Employment Fund also has insider
guidelines approved by the Board of
Directors, which describe the most
important principles governing the insider
matters of Employment Fund.
In accordance with the MAR requirements,
Employment Fund maintains a list of
persons in management positions and
their related parties. The members of
the Supervisory Board, members of the
Board of Directors as well as the Managing
persons holding management positions.
A person holding a management position
in Employment Fund may not, directly
or indirectly, trade with an Employment
own account or for the account of a third
party during a closed period, regardless of
whether the person in question has inside
information at that time. For the duration
of the closed period, Employment Fund
also imposes trading restrictions on all
in the preparation of Employment Fund’s
statement release. The closed period lasts
for 30 days before the publication of the
date of the publication.
Employment Fund establishes an insider
list for each individual project in which the
details of the persons with access to that
particular insider information is entered
Fund does not maintain the insider list’s
supplementary section listing permanent
used.
Employment Fund has a person
responsible for insider issues who carries
out the duties of Employment Fund’s
insider administration. Employment Fund
has a procedure by which one can report
provisions and regulations through an
independent channel. Employment Fund’s
anonymous whistleblowing system serves
as the Fund’s reporting channel and it is
accessible on Employment Fund’s intranet
and on its public website.
59Report of the Board of Directors 2022 Corporate governance
Principles concerning related parties
The regulations on related-party
transactions set out in the Limited Liability
Companies Act are not applicable to
Employment Fund’s operations. However,
Employment Fund complies with IFRS
standards and guidelines regarding related-
party transactions (). The related
parties of Employment Fund comprise
the members of the Supervisory Board,
members of the Board of Directors, the
Managing Director, the main auditor, the
members of the Management Group, and
their spouses, trustees, and controlled
undertakings.
Transactions involving related parties are
handled in accordance with the guidelines
on related-party transactions approved by
the Board of Directors. The list of related
parties is maintained by Employment
AUDITOR AND AUDITOR’S FEES
The Supervisory Board of Employment
Fund selected KPMG Oy as the Fund’s
auditor for 2022. Marcus Tötterman,
Authorised Public Accountant, KHT, acted
as the main auditor.
The auditor’s fees for 2022 include EUR
83,087 in audit-related costs paid to KPMG
Oy and EUR 0 paid for other services.
60Report of the Board of Directors 2022 Remuneration report
Remuneration report
Employment Fund is not a limited liability
company and thus the regulations on
remuneration principles and reporting
are not directly applicable to the Fund’s
operations. Therefore, Employment
Fund’s remuneration report for 2022 has
been drawn up, where applicable for
Employment Fund, in compliance with
the Finnish Corporate Governance Code
2020 (), published by the
Securities Market Association.
FEES AND OTHER BENEFITS PAID TO THE
MEMBERS OF THE SUPERVISORY BOARD
On 22 October 2020, on the proposal of the
labour market parties, the Government
appointed the members of Employment
Fund’s Supervisory Board for the term
The Ministry of Social Affairs and Health
decides on the remuneration for meetings
for the Supervisory Board and the
principles of compensation for travelling
expenses.
On 22 October 2021, the Ministry of Social
Affairs and Health decided that the fees for
the members of the Supervisory Board are
as follows: for the chair, EUR 310 per month
and EUR 410 per meeting, for the vice chair
and other members, EUR 310 per meeting.
In 2022, the Supervisory Board met three
times. The meetings included one email
meeting for which no remuneration is paid.
61Report of the Board of Directors 2022
In 2022, the fees for the members of the Supervisory Board were paid as follows:
Name
Meeting fee of the
Supervisory Board
members
Annual fee of the
Supervisory Board
Chair Travel expenses
Total on
31 December 2022
Attendance at meetings
of the Supervisory Board
Antti Zitting, Chair 820 3,720 198 4,738 3/3
Jari Jokinen, Vice Chair 620 0 0 620 3/3
Riku Aalto 310 0 0 310 2/3
Teija Asara-Laaksonen
(until 23 August 2022) 310 0 0 310 1/3
Jorma Haapanen (until 8 July 2022 ) 310 0 0 310 1/3
Teemu Kokko 620 0 0 620 3/3
Antti Korpiniemi 310 0 30 340 2/3
Tomi Lantto 620 0 0 620 3/3
Kirsi-Marja Lievonen 310 0 0 310 2/3
Petri Lindroos 620 0 0 620 3/3
Salla Luomanmäki 620 0 0 620 3/3
Jorma Malinen 310 0 0 310 2/3
Matti Mettälä 620 0 0 620 3/3
Taina Niiranen 310 0 0 310 2/3
Olli Nikula 620 0 0 620 3/3
Silja Paavola 310 0 0 310 2/3
Juha Rostedt (from 8 July 2022) 310 0 114 424 2/3
Saila Ruuth (from 23 August 2022) 0 0 0 0 1/3
Millariikka Rytkönen 0 0 0 0 1/3
Annika Rönni-Sällinen 310 0 0 310 2/3
Total 8,260 3,720 342 12,322
Remuneration report
62Report of the Board of Directors 2022
FEES AND OTHER BENEFITS PAID TO THE
MEMBERS OF THE BOARD OF DIRECTORS
The Supervisory Board decides on the remuneration of the Board
of Directors. On 26 August 2021, the Supervisory Board decided that
the fees for the members of the Board of Directors are as follows:
Task Fee EUR per month Fee EUR per meeting
1,030 410
820 310
Other members of the Board of
515 255
No other remuneration or supplementary pension arrangements
are in place for the members of the Board of Directors.
In 2022, the Board of Directors convened 11 times. The Board of
Directors also held a strategy seminar for which no remuneration
is paid.
In 2022, the fees for the members of the Board of Directors were
paid as follows:
Name
Annual fees
of the Board
of Directors
Meeting fees
of the Board
of Directors
Total on 31
December
2022
Attendance
at meetings
of the Board
of Directors
Saana Siekkinen,
Chair
12,360 4,100
16,460
10/11
Markku Jalonen,
Vice Chair
9,840 3,410
13,250
11/11
Tuomas Aarto
6,180 2,805
8,985
11/11
Jarkko Eloranta
(from 13 September 2022)
2,060 255
2,315
1/11
Minna Etu-Seppälä
6,180 2,550
8,730
10/11
Sture Fjäder
6,180 2,295
8,475
9/11
Riikka Heikinheimo
6,180 2,805
8,985
11/11
Minna Helle
6,180 2,805
8,985
11/11
Ilkka Kaukoranta
(until 3 September 2022)
4,120 1,785
5,905
7/11
Patrizio Lainà
6,180 2,295
8,475
9/11
Henrika Nybondas-Kangas
6,180 2,805
8,985
11/11
Antti Palola
6,180 2,805
8,985
11/11
Vesa Rantahalvari
6,180 2,550
8,730
10/11
Heikki Taulu
6,180 2,550
8,730
10/11
Pirjo Väänänen
6,180 2,805 8,985 11/11
Total 96,360 38,620 134,980
Remuneration report
63Report of the Board of Directors 2022
In 2022, the audit committee met six times. The meetings included
one email meeting for which no remuneration is paid.
In 2022, the fees for the members of the audit committee were paid
as follows:
Name
Meeting fees
for the audit
committee
Total on 31
December
2022
Attendance at
audit committee
meetings
Henrika Nybondas-Kangas,
Chair 2,050 2,050 6/6
Heikki Taulu, Vice Chair 1,020 1,020 5/6
Minna Helle 1,275 1,275 6/6
Ilkka Kaukoranta
(until 3 September 2022) 765 765 4/6
Pirjo Väänänen
(from 27 September 2022) 255 255 1/6
Total 5,365 5,365
REMUNERATION SCHEME FOR THE MANAGING DIRECTOR
A separate remuneration scheme approved by the Board of
Directors applies to the Managing Director. The Board of Directors
decides on the payment of any bonuses. The bonuses of the other
management members are based on a remuneration scheme
approved by the Board of Directors. Based on a proposal of the
Managing Director, and in accordance with approved bonus
criteria, the Board of Directors decides on the payment of bonuses.
Director for 2022 are shown in the following table. Social security
contributions are excluded.
Position
Salary
and fringe
Variable
performance-
related bonus
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Managing Director 167,505 11,054 178,559 170,426
TERMS OF EMPLOYMENT OF THE MANAGING DIRECTOR
The Managing Director’s terms of employment have been
determined by the Board of Directors and they are stated in a
written employment contract. The remuneration of the Managing
related bonus. Performance targets and any remuneration to be
the Managing Director comprises a monetary compensation and
age and pension accrual of the Managing Director are based on
the general employment pension legislation. The Fund has not
provided a supplementary pension arrangement for the Managing
Director. The Managing Director’s notice period is based on the
Employment Contracts Act for both parties.
Remuneration report
64Report of the Board of Directors 2022
REMUNERATION FOR THE MANAGEMENT GROUP
The remuneration of Employment Fund’s Management Group
variable performance-related bonus. In 2022, the maximum bonus
is based on a remuneration scheme approved by the Board of
Directors each year. Based on a proposal of the Managing Director,
and in accordance with approved bonus criteria, the Board of
Directors decides on the payment of bonuses.
Group during 2022 are shown in the following table. Social security
contributions are excluded.
Position
Salary
and fringe
Variable
performance-
related bonus
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Management Group 545,231 22,518 567,749 612,371
TERMS OF EMPLOYMENT OF THE MANAGING GROUP
The terms of employment for Management Group members
pension accrual of the Management Group members are based
on the general employment pension legislation. The Fund has
not provided a supplementary pension arrangement for the
Management Group members. The Management Group members’
parties.
Remuneration report
65
Financial
statements
66Financial statement 2022
Financial Statements (IFRS) 2022
Statement of changes in net position
STATEMENT OF CHANGES IN NET POSITION
Note 1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Contributions collected
Unemployment insurance contributions and other income
5 3,490,831 3,334,855
Total contributions collected 3,490,831 3,334,855
Financing contributions paid
Financing contributions paid
6 -2,809,083 -3,724,310
Administrative expenses
7 -22,685 -25,505
-2,831,768 -3,749,815
Net fair value gains on investments
14 -36,155 4,124
Financing costs
8 1,806 -666
Change in net position 624,714 -411,502
67Financial statement 2022
STATEMENT OF NET POSITION
Note
31 December
2022
31 December
2021
ASSETS
Non-current assets
Property, plant and equipment
9 3,365 3,735
Intangible assets
10 2,581 3,614
Other receivables
13 0 328
Total non-current assets 5,946 7,677
Current assets
Receivables from unemployment
insurance contributions
11 13,626 3,356
Accruals of unemployment insurance
contributions
11 701,769 622,164
Other receivables
13 96,348 46,292
Investment assets
15 1,660,524 1,046,293
Cash and cash equivalents
16 224,711 292,326
Total current assets 2,696,977 2,010,431
Total assets 2,702,923 2,018,108
Note
31 December
2022
31 December
2021
NET POSITION
For previous periods 633,263 1,044,765
For the period 624,714 -411,502
Total net position 1,257,977 633,263
LIABILITIES
Non-current liabilities
Bonds
17 598,205 1,198,945
Total non-current liabilities 598,205 1,198,945
Current liabilities
Loans
17 700,404 100,242
Unemployment insurance contribution
liabilities
11 1,533 1,846
Other liabilities
18 144,805 83,813
Total current liabilities 846,741 185,900
Total liabilities 1,444,946 1,384,845
Total net position and liabilities 2,702,923 2,018,108
Statement of net position
68Financial statement 2022
CASH FLOW STATEMENT
1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Unemployment insurance contributions collected 3,484,581 3,252,016
-2,901,148 -3,763,083
Interests paid -2,186 -2,884
Net cash and cash equivalent used in ordinary operations 581,247 -513,951
Purchases of property, plant, and equipment 0 0
Purchases of intangible assets -971 -683
-2,954,750 -1,245,581
Sales of investment instruments and realised income 2,307,437 1,403,696
Other non-current assets 0 0
Net cash and cash equivalents generated from investments -648,283 157,431
Loans withdrawn and repaid -578 12,553
-578 12,553
Net increase/decrease in cash and cash equivalents -67,615 -343,966
292,326 636,292
224,711 292,326
69Financial statement 2022
1 GENERAL INFORMATION
Employment Fund (“the Fund”) (business
ID 1098099-7), established in 2019, is an
independent institution managed by labour
market parties and supervised by the
Ministry of Social Affairs and Health and the
Finnish Financial Supervisory Authority,
develops and supervises the implementation
of the collection procedure of unemployment
insurance contributions and determines and
collects the employer’s liability component of
unemployment security. In addition, the Fund
manages employer’s training compensations.
Employment Fund is domiciled in Helsinki
and its address is Itämerenkatu 11–13, 00180
Helsinki.
The principal accounting policies applied
set out below. These policies have been
presented unless otherwise stated.
2 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES AND
COMPARABILITY OF FINANCIAL PERIODS
2.1 Basis of preparation
have been prepared in accordance with the
International Financial Reporting Standards
(IFRS) as adopted by the European Union,
conforming with the IAS and IFRS standards
as well as the SIC and IFRIC interpretations
applicable as per 31 December 2022. IFRS
refers to the standards and interpretations
applicable to corporations and set out in the
Finnish Accounting Act and the provisions
issued under it in accordance with the
procedure laid down in Regulation (EC) No
1606/2002 of the European Parliament and
statements also comply with Finnish
accounting and corporate legislation
supplementing IFRS standards.
operations are based on the Act on the
Decree of the Financing of Unemployment
Procedure of Employment Fund with
amendments, as stated in section 1.
Employment Fund collects and pays
unemployment insurance contributions.
The Fund does not carry out business
operations in which it would generate
revenues arising from the sale of goods or
rendering of services. Due to the nature of
the Fund’s operations, the Fund does not
generate revenues, and common revenue
70Financial statement 2022
recognition principles do not apply. IFRS
standards do not directly regulate the
of a fund like Employment Fund, or the
basis for recognition and measurement of
transactions. Employment Fund applied
the framework of IFRS standards and
general principles for recognition and
measurement when it prepared its IFRS
the primary statements of the Fund’s IFRS
changes in net position, the statement of
The changes in net position for the
unemployment insurance contributions
collected and paid, gains on investments
accumulated net position, which is also
referred to as the business cycle buffer. A
more detailed description of the business
cycle buffer is provided in note 4.2.
Employment Fund has no shares or equity.
do not include the statement of changes in
equity. However, the statement of changes
in net position is presented as a separate
primary statement.
Fund did not have any such transactions
that should have been recognised in other
comprehensive income. Therefore, these
a statement of other comprehensive
income. Employment Fund does not
operate as an insurer as it does not issue or
hold insurance or reinsurance contracts.
Therefore, the Fund’s operations are not
within the scope of IFRS 4 Insurance
Contracts. The principal valuation method
and liabilities recognised at fair value
presented in euros unless otherwise stated.
in conformity with IFRS requires the use
of certain critical accounting estimates.
It also requires management to exercise
its judgement in the process of applying
estimates and judgements are described in
note 3.
There are no new IFRS standards or IFRIC
interpretations that are not yet effective
and that would be expected to have a
material impact on Employment Fund.
71Financial statement 2022
2.2 Foreign currency translation
in euros, which is Employment Fund’s
functional and presentation currency. The
Fund’s foreign currency transactions are
translated into the operating currency
at the exchange rates prevailing on the
transaction dates. Deposits denominated
in foreign currencies are measured at
effects of changes in exchange rates have
been presented as part of the total fair
value change.
2.3 Unemployment insurance contributions
Employment Fund assesses and collects
the unemployment insurance contributions
based on chapter 7 of the Act on the
Employers report the paid wages to
the Incomes Register. Unemployment
insurance contributions are determined
four times a year on the basis of the
earnings payment data received from
the Incomes Register. Unemployment
insurance contribution income is
on an accrual basis, and unemployment
insurance income from the last quarter of
the year is recorded as prepayments and
accrued income in the balance sheet.
Liability components of employer’s
unemployment security
Employment Fund assesses and collects
liability components of unemployment
security from employers. The liability
component of unemployment security
applies to employers whose payroll,
serving as the basis for the calculation
of the unemployment insurance
contribution, exceeds the minimum level of
2,197,500 (in 2022). An employer may
be obligated to pay the employer’s liability
component if it has dismissed or laid off
an aged employee whose employment
relationship has lasted at least three years
and the employee has been unemployed
or laid off for a long time. Unemployment
liability components.
Collected liability components that cover
the cost of daily unemployment allowances
are recognised as income for the period
when the amount of income can be reliably
measured. In order to cover the cost of
additional daily allowances, the collected
liability components are recognised as
based on the estimate of the realisation of
corresponding expenses.
72Financial statement 2022
Reconciliation based on chapter 12, section
3 of the Employment Contracts Act
Under the Employment Contracts
Act, when a court of law considers a
reconciliation matter, it must provide
Employment Fund with the opportunity
to be heard. As a rule, 75% of the earnings-
related daily unemployment allowance
received by the employee during the
indemnity period is deducted from the
indemnity imposed on the employer for
wrongful termination of employment. The
court must order the employer to pay the
amount deducted from the compensation
to Employment Fund and inform it of the
must also take place when the employer
and the employee reach a settlement on
the compensation payable for wrongful
termination of employment.
Receivables subject to debt-collection
The Fund collects and monitors neglected
unemployment insurance contributions,
those subject to enforcement, and
the contributions due by companies
in bankruptcy or debt restructuring
proceedings. As the receivables do
components, the Fund has used the
2.4 Subsidies to unemployment funds
Under the Act on the Financing of
unemployment allowances, Employment
Fund is liable for the costs incurred from
unemployment allowances, employment
promotion measures, and from job
alternation compensation, insofar as
the state or individual unemployment
funds are not liable for these. The above-
unemployment funds.
73Financial statement 2022
Employment Fund is also liable for the
insurance contributions for unemployed
persons and recipients of the adult
education allowance that are paid through
the Finnish Centre for Pensions to the
employment pension institutions.
Under the Decree on the Implementation
of the Act on Unemployment Funds
(272/2001), Employment Fund is tasked
with processing prepayment applications
and payment decisions and monitoring
makes prepayments to the unemployment
funds twice a month in accordance
with the budget approved at the end of
receives monthly statistics from the
Financial Supervisory Authority on the
accumulated allowances paid by the
unemployment funds to their customers,
and based on that, the Fund has accrued
the prepayments and actual payments to
each fund either as a receivable or liability
in its accounts. This accrual is recognised
The Ministry of Social Affairs and Health
pays to Employment Fund the government
contributions that the Fund pays to
contributions. The Fund transfers the
prepayments of government contributions
banking day of each month. In 2022, the
Ministry of Social Affairs and Health paid
government contributions to the Fund
otherwise proposed by Employment Fund.
The income received from the ministry and
the expenditures paid to the unemployment
funds have been recognised in amounts
made by the funds to their customers. The
Ministry of Social Affairs and Health will
information in summer 2023, at which
point the Fund will make equalisations
in the account balances between the
unemployment funds and the state.
Under section 4 of the Act on the Financing
Fund has sole responsibility for funding the
increased earnings-related component laid
down in section 6 of the Unemployment
Security Act. From the beginning of
2015, the means by which the higher
income earnings-related unemployment
allowances are calculated was changed
so that the level of allowances decreased
slightly. The same change was carried out
regarding the supplementary earnings-
related allowances. These changes
implement the reduction of unemployment
Government’s framework decision. The
change has decreased expenditure related
to earnings-related daily unemployment
allowances. To implement government
savings, Employment Fund pays the
amount of savings (about EUR 50.3 million)
yearly to the Social Insurance Institution
under section 23 of the Act on the
(555/1998).
74Financial statement 2022
Payments to the Finnish Centre
for Pensions and State Pension
Fund and their interest rates
Employment Fund’s second-largest
expense has been the contribution paid
to the Finnish Centre for Pensions to
cover the pension liabilities and expenses
arising from taking into account the time
of unemployment, education and job
alternation leave (sections 74 and 182 of the
Employees Pensions Act [395/2006]). The
amount of this contribution is determined
by estimating the average amount of
pension contributions that would be paid
for the unpaid periods that constitute the
basis of the accrued pension security. As
stated above, the Fund is liable to pay the
contribution laid down in sections 62 and
133 of the State Employees’ Pensions Act
(1295/2006) to the State Pension Fund.
Payments made to the Finnish Centre
in accordance with section 12c of the
Employees Pensions Act (561/1998) are based
on an estimate provided by the Finnish
Centre for Pensions and adjusted in the
the payments made and the adjusted
estimate is recognised as prepayments and
accrued income or accruals and deferred
income.
received from the Finnish Centre for
Pensions in the spring of the year following
as an equalisation payment for the previous
year. The revised payment for the year and
the equalisation payment for the previous
The Finnish Centre for Pensions assigns
interest on the charges imposed on
Employment Fund according to the TyEL
premium insurance interest rate. The
statements accrues interest until the end of
Finnish Centre for Pensions refunds the
interest to Employment Fund according to
the actual payments and times of payment
(compensatory interest).
the following year accrues interest until the
clearance date agreed between the Finnish
Centre for Pensions and Employment
Fund (previous year’s debiting interest).
Compensatory interest is correspondingly
calculated for all payments made by the
Fund in the previous year (compensatory
interest for the previous year’s payments).
The debiting and compensatory interests
for payments to the State Pension Fund are
calculated in a manner identical to the above.
Settlement to the Social Insurance
Institution of Finland of income
from the unemployment insurance
contributions of employees who are not
members of an unemployment fund
Under sections 8 and 23 of the Act on the
(555/1998), the Fund makes an annual
prepayment to the Social Insurance
Institution of Finland from the employees’
unemployment insurance contribution
income, corresponding to the percentage
of employees who are not members of an
unemployment fund. The amount of the
75Financial statement 2022
settlement is estimated from data collected
by Statistic Finland, and the estimate is
approved by the Ministry of Social Affairs
payment is based on a calculation prepared
by the Ministry of Social Affairs and Health
period.
Employment Fund grants and pays adult
education allowance and scholarships
(1276/2000). Employment Fund is also
education allowances for employees and
working for employers other than central
government. The state is responsible for
for entrepreneurs and scholarships for
government. The responsibility for
Financing of pay security
Under section 31 of the Pay Security
Act (866/1998), Employment Fund is
responsible for the state’s pay security
expenses. Pay security expenses are paid
once per year, normally in the spring of the
following year, to the Ministry of Economic
Affairs and Employment, based on an
invoice sent by the Ministry.
Member State invoicing for
unemployment allowances
Article 65 of Regulation (EC) No 883/2004
of the European Parliament and of the
Council on the coordination of social
security systems (basic regulation)
provides for situations in which a person
becomes unemployed after working in a
Member State other than their country of
residence. In Finland, Employment Fund
has been designated as the competent
body when implementing this basic
regulation with regard to earnings-related
unemployment insurance. The Fund’s
responsibilities include the payment and
collection of the compensation laid down
in paragraphs 6 and 7 of Article 65, incurred
from unemployment allowance paid to the
members of unemployment funds.
The Fund applies for compensation
from Member States depending on how
the unemployment funds have paid the
unemployment allowances to those who
have been working in another Member
State. In turn, Member States apply for
compensation from Employment Fund for
citizens of other Member States that have
fully repaid, but not more than the amount
that would have been paid in the country
of employment. Income and expenses are
recognised on a cash basis.
Training compensation
Employment Fund manages employers’
training compensation. The training
compensation is based on the Act on
Compensations for Training (1140/2013).
support to develop competence for
those employers who are not eligible
for a training deduction granted by the
Business Income Tax Act or Agricultural
76Financial statement 2022
Income Tax Act. These employers include
organisations. The purpose of the training
compensation is to improve the employer’s
opportunities to organise training for its
employees so that they can enhance their
vocational competence.
Training compensation can be granted
for a maximum of three training days
of training compensation has been
designated so that each calendar year, the
Ministry of Finance pays the amount that
the Fund has refunded to employers in the
form of training compensation based on an
application from Employment Fund.
contribution pension schemes. Statutory
pensions are managed by a pension
insurance provider. Pension contributions
are recognised as expenses for the
are incurred. The Fund has a bonus system
for its employees. The Board of Directors
decides on the payment of any bonuses
on the Managing Director’s proposal and
in compliance with the bonus criteria.
Realised bonuses are recognised as
to the bonus system.
2.5 Property, plant and equipment
Property, plant and equipment comprises
the Fund’s machinery and equipment and
the leasehold improvements. Property,
plant and equipment are measured in the
statement of net position at the historical
cost minus the accumulated depreciation
and impairment charges.
Leasehold improvements are added to the
premises improvement’s carrying amount
when it is probable that future economic
to the Fund. The expenses of ordinary
repair and maintenance costs are reported
in the period in which they are incurred.
Depreciation on property, plant and
equipment is calculated using the straight-
line method over their estimated useful
lives.
As a rule, the residual value is estimated
to be zero. Assets’ residual values and
statements are prepared. Depreciation
periods are adjusted if the estimate
lives by asset class are as follows:
• Leasehold improvements 5 years
• Machines and equipment 3 years
Gains and losses on disposal and
decommissioning of property, plant and
equipment are calculated as the difference
between net proceeds and the carrying
amount. Gains and losses on disposals are
included in the administrative expenses in
the statement of changes in net position.
77Financial statement 2022
2.6 Intangible assets
comprise acquired or internally produced
computer software, and other intangible
assets when it is probable that future
be measured reliably. Implementation costs
related to the cloud computing service
arrangement, which is a service contract,
are primarily recorded as expenses
incurred when the relevant implementation
service is obtained. Implementation costs
related to the cloud service arrangement
are only capitalised and amortised over a
longer period of time in cases where the
implementation service is not distinct
from the service that allows access to the
software, or when the costs relate to the
creation of a separate intangible asset.
The cost of an internally generated
of directly attributable production costs
allocated to the asset.
Costs associated with maintaining
computer software are reported as expenses
incurred. Research costs are recognised as
they are incurred. Development costs that
are attributable to the design and testing of
existing software, are capitalised only when
they meet the above-mentioned criteria of
recognition to the statement of net position.
are measured at historical cost less
amortisation and impairment charges.
Amortisation of intangible assets is
calculated using the straight-line method
over their useful lives. Estimated useful
lives by asset class are as follows:
• Computer software 3 years
• Software development expenditure
78Financial statement 2022
assessed whether there have been any
events or changes in circumstances that
indicate that the value of an intangible
asset or an item of property, plant and
equipment subject to amortisation or
depreciation may have changed. If there
are any indicators of impairment, the
recoverable amount is determined.
The recoverable amount is the asset’s fair
value less the costs of disposal or the value
in use, whichever is higher. Value in use
refers to the asset’s expected future net
net present value by using the determined
discount rate. An impairment loss is
recognised in the statement of changes
in net position for the amount by which
the asset’s carrying amount exceeds its
recoverable amount. The useful life of a
depreciated asset is reviewed in connection
with the recognition of impairment losses.
Impairments are reversed if circumstances
change and an asset’s recoverable amount
changes after the recognition of the
impairment, but not to an amount higher
than the carrying value would be without
the impairment charge.
2.8 Financial assets and liabilities
Financial assets
Employment Fund applies the IFRS 9
(Financial Instruments) standard, which
was published by the International
Accounting Standards Board and took
effect on 1 January 2018. IFR 9
how an entity should classify and measure
for impairment charges based on expected
losses and general requirements for hedge
categories: those measured at amortised
cost, those measured at fair value through
other comprehensive income and those
retains most of the IAS 39 requirements.
For impairment, a model based on expected
credit losses is used.
of investments as well as cash and cash
equivalents. On the date of acquisition, the
are recognised on the trade date (the day
when the Fund commits to buy or sell the
asset).
79Financial statement 2022
Investments are presented in the statement
of net position as current assets unless
their maturity is over 12 months and the
management intends to dispose of them
more than 12 months after the reporting date.
Investments are initially recognised at fair
value. Transaction costs are recognised
directly as expenses. After initial
recognition, the investments are measured
at fair value on each reporting date, and
realised and unrealised changes in fair
value are recognised in the statement of
changes in net position in the period in
which they arise. Net changes in fair value
are presented in the statement of changes
in net position on the line ‘Net income
from measuring investments at fair value’.
All interest and dividend income from
investments are included in the net change
value is presented in note 15.
Financial assets are de-recognised when
expired or have been transferred to another
party such that all the risks and rewards
have been transferred.
Cash and cash equivalents
Cash and cash equivalents comprise cash
in hand and deposits held at call with
banks.
Loans
Loans are recognised initially at fair
value, the net of the transaction costs
incurred. Loans are subsequently carried
at amortised cost. Any difference between
the proceeds (net of transaction costs) and
the redemption value is recognised in the
statement of changes in net position over
the period of the loan using the effective
interest method.
Fees paid on loan facilities are recognised
as the transaction costs of the loan to the
extent that it is probable that some or all
of the facility will be withdrawn. In this
case, the fee is deferred and recognised
in the statement of net position until the
loan is withdrawn. To the extent there is no
evidence that it is probable that some or all
the loans of the facility will be withdrawn,
the fee is capitalised as a prepayment for
liquidity services and amortised over the
period of the facility.
80Financial statement 2022
2.9 Rental agreements
As a lessee, the Fund has applied the
IFRS 16 Leases standard since 1 January
concerning recognition, valuation and
statements. The standard introduces
a single lessee accounting model. In
principle, all leases with a term of more
than one year are recognised in the balance
sheet, unless the underlying asset is of
the lessee recognises a liability for its
obligation to make lease payments and
an asset item for its right to use the asset.
The lessee must recognise the interest
expenses on the liability and the planned
depreciation on the asset item. In addition,
lease liability in conjunction with certain
events (such as a change in the term of the
lease or changes to the lease payments due
to index adjustments). The Fund uses the
transition relief permitted by IFRS 16 with
regard to short-term leases (with terms
of less than 12 months) and leases of low-
value assets.
81Financial statement 2022
3 CRITICAL ACCOUNTING
ESTIMATES AND JUDGEMENTS
in conformity with IFRS requires the
management to make estimates and
assumptions that have affected the income,
expenses, assets and liabilities presented in
needed in the application of accounting
policies. The estimates are based on the
best information available on the reporting
date. The evaluation is based on both
earlier experience and assumptions about
the future that are most probable on the
reporting date. Actual results may differ
from these decisions based on estimates
and assumptions. Possible changes in
estimates are recognised in the period
in which the estimate is adjusted and
all subsequent periods. The planning
and management of Employment Fund’s
of changes in the unemployment rate,
unemployment expenses, employment
rate and payroll. Under normal conditions,
the Fund must set the insurance
all projected expenses can be covered
with the insurance contributions. The
unemployment insurance contributions
(contribution rates) are set for one calendar
year at a time. When the contributions are
changed, the employers’ and employees’
contributions are changed by the same
percentage. The forecast deviation in
the change in net position between the
budget prepared in August in the preceding
are prepared more than a year later, was
2022.
If necessary, the Fund exercises judgement
in applying the valuation methods used in
the measurement of fair value insofar as
the fair values are not received as direct
prices from active markets.
Fair value determination of current money
market investments is based on the
has used judgement when it has concluded
that the change of credit risk does not have
a material impact on the change of fair
values of investments due to their short
duration and high credit rating. The Fund’s
critical assumptions concerning the future
and key uncertainties in the reporting date
are related to the factors mentioned above.
82Financial statement 2022
Credit losses
Employment Fund applies the IFRS 9
standard model for expected losses when
estimating impairment charges associated
with uncertain unemployment insurance
contribution receivables. In this model,
expected losses are recognised for the
and the model is based on the amount of
the outstanding receivables and the time
period for which they remain outstanding.
The parameters applied in the model are
based on an estimate of the amount of
unemployment insurance contribution
receivables, liability component
receivables, reconciliation receivables
based on the Employment Contracts Act,
to be recognised as credit losses on the
reporting date. Expected credit losses
throughout the entire period of validity
are calculated by multiplying the gross
carrying value of the unpaid receivables by
the expected proportion of loss. Changes
to expected credit losses are recognised
Segment reporting
The IFRS 8 Operating Segments standard
requires entities to disclose information to
the business operations in which the entity
engages and the economic environments
standard, an operating segment is a
component of an entity
A. that engages in activities from which it
may earn revenues and incur expenses
B. whose operating results are regularly
reviewed by the entity’s most senior
executive decision-maker to make
decisions about resources to be
allocated to the segment and assess its
performance, and
C.
is available.
standard, the function of the most senior
executive decision-maker is to allocate
resources to and assess the performance of
the operating segments of an entity.
Employment Fund is tasked with collecting
unemployment insurance contributions,
the level of which has been determined by
the public authorities. The Fund pays the
collected contributions onwards, mainly to
unemployment funds.
Employment Fund uses the collected
contributions for conservative investment
contributions. The Fund also covers any
management monitors the Fund’s operations
as a single entity, which consists of the
resulting in a change in net position. The
Fund’s management does not actually
allocate resources to the entity’s activities or
review the effectiveness of operations.
For these reasons, Employment Fund’s
management has made the assessment that
the presentation of segment information
83Financial statement 2022
is not appropriate. Presenting segment
information would not improve the ability
assess the Fund’s operations, nature of
effects. According to Employment Fund’s
management, the nature of the Fund’s
operations and operating environment and
4 FINANCIAL RISK MANAGEMENT
investment risks to a level where their
losses for the Fund to the extent of creating
pressure to increase contributions or
endanger the liquidity of the Fund. The
and risk limits of Employment Fund
are provided for in more detail in the
investment principles approved by the
Supervisory Board and the investment plan
and debt-management plan approved by
the Board of Directors.
The market risk of investments is primarily
measured by using the stress-test method,
in which a risk indicator expressed as
annual volatility is assigned to each
investment class on the basis of historical
investments, and they comprise market
risk, credit and counterparty risk and
accordance with the investment principles
approved by the Supervisory Board across
various asset classes so as to reduce
level that their realisation would not result
in the Fund incurring losses that would
give rise to pressures to increase the level
of contributions. The Fund may enter into
derivative contracts for hedging purposes;
however, derivatives were not used during
the periods presented.
The Fund measures all its investments
at fair value because they have been
are itemised in note 15, along with their
fair values by asset class and the basis for
Market risk
The interest rate risk is the main
market risk factor impacting the Fund’s
investments and liabilities. The Fund’s
investment portfolio is dominated by
investments and bonds).
Employment Fund may make investments
directly, or indirectly through investment
funds. At the end of the period under
review, 14% (27%) of all investments were
indirect investments.
84Financial statement 2022
Investment market risk
31 December 2022
Risk
per cent
Capital
EUR thousand
Risk
EUR thousand
Bank deposits 0.50% 218,108 1,091
Money market 1.00% 830,516 8,305
State and municipal bonds 4.00% 231,058 9,242
Bank bonds 4.50% 307,430 13,834
Corporate bonds 5.00% 180,450 9,023
Equities 25.00% 36,111 9,028
Alternative investments 10.00% 74,958 7,496
Total risk 3.09% 1,878,632 58,019
31 December 2021
Risk
per cent
Capital
EUR thousand
Risk
EUR thousand
Bank deposits 0.50% 289,826 1,449
Money market 1.00% 356,447 3,564
State and municipal bonds 4.00% 194,018 7,761
Bank bonds 4.50% 252,160 11,347
Corporate bonds 5.00% 162,983 8,149
Equities 25.00% 38,159 9,540
Alternative investments 10.00% 42,865 4,287
Total risk 3.45% 1,336,458 46,097
The total risk was 3.09% (3.45%) of the Fund’s assets and 1.7% (1.4%)
of the Fund’s income in 2022. The risk posed by the investment
portfolio is moderate due to its conservative structure and
moderately low risk level of the securities in the portfolio.
As in 2021, all money market investments were variable-rate
investments. Altogether 8% (9%) of the bonds were at variable
to a fair value interest rate risk.
If on 31 December 2022, the Euribor rates and interest rate curve
(swap rates) had been 0.5 percentage points higher while all other
variables had remained constant, the total change in net position
would have been reduced by EUR 9.40 (6.06) million. Respectively,
if on 31 December 2022 the Euribor rates and interest rate curve
(swap rates) had been 0.5 percentage points lower, the total change
in net position would have been increased by EUR 9.40 (6.06)
million.
85Financial statement 2022
Credit risk
The credit risk of the investments is
managed by issuer credit limits. Limits
for each issuer are determined by taking
account of the absolute size, economic
position and future outlook of the issuer.
Employment Fund continuously monitors
the credit standing and future outlook of the
issuers, and when changes occur, the limits
are either increased or decreased. The
Fund mainly invests in banks in the Nordic
countries which have high credit ratings,
states with strong credit ratings (Finland,
Germany, the Netherlands, Belgium, France,
Austria and Sweden), companies mainly
in Finland and some in Sweden, and
municipalities. Cash and cash equivalents
are only held at banks with high credit
ratings.
The spread duration of the credit risk
included in the investments at the end
of the period under review was 1.28 (1.49)
years.
The average credit rating of the investment
portfolio is evaluated on Standard &
Poors scale, which is based on historical
probabilities of credit losses. The credit
rating of the investment portfolio was
estimated to be BBB+ (BBB+) on 31
December 2022.
86Financial statement 2022
creditworthiness by group.
Investments distributed by the
issuer’s rating *
31 Dec 2022
EUR thousand
31 Dec 2022
per cent
31 Dec 2021
EUR thousand
31 Dec 2021
per cent
AAA 112,814 6.4% 61,332 4.9%
AA+ 130,509 7.4% 110,224 8.8%
AA 7,391 0.4% 51,395 4.1%
AA- 555,907 31.5% 403,849 32.2%
A+ 348,434 19.7% 119,822 9.5%
A 47,589 2.7% 63,722 5.1%
A- 145,574 8.2% 121,257 9.7%
BBB+ 102,284 5.8% 55,768 4.4%
BBB 176,883 10.0% 180,243 14.4%
BBB- 67,250 3.8% 31,265 2.5%
BB+ 40,965 2.3% 6,812 0.5%
BB 4,678 0.3% 3,649 0.3%
BB- - 0.0% - 0.0%
B+ - 0.0% - 0.0%
B - 0.0% - 0.0%
B- - 0.0% - 0.0%
CCC+ - 0.0% - 0.0%
CCC - 0.0% - 0.0%
NR 27,280 1.5% 46,100 3.7%
Total 1,767,560 100.0% 1,255,438 100.0%
* The Fund’s investments in bonds mainly consist of state and bank bonds. Their creditworthiness has been
determined using the S&P credit rating. Most of the banks that the Fund has invested in have good credit
these entities is determined using credit ratings received from a third party.
The amount of Employment Fund’s
unemployment insurance contribution
receivables, liability component receivables,
reconciliation receivables based on
receivables, and interest receivables,
are included in the credit risk. The most
important factor in the realisation of
the aforementioned credit risk is related
to cases in which customers liable
for paying unemployment insurance
contributions become insolvent (due to
bankruptcy, corporate restructuring or debt
restructuring).
The number of bankruptcy petitions was
higher than in 2021. The number of corporate
quarters of 2022 compared to 2021. However,
the number of corporate restructurings
increased towards the end of 2022, as forecast
in the half-year report. However, the changes
to the Restructuring of Enterprises Act, which
entered into force on 1 July 2022 and state
that companies can seek early restructuring
have not had any impact on the collection
activities of Employment Fund.
87Financial statement 2022
The changes to the Credit Information Act entered into force on
1 December 2022. The removal of the payment default entry 30
days after the details of the debt payment have been entered in
the credit information register is the most important change
concerning the collection activities of Employment Fund. It is
still too early to estimate the impact of these changes on the
effectiveness of Employment Fund’s collection activities.
Liquidity risk
The Fund aims to manage liquidity risk as follows:
1. Liquid realisable investments
2. Short-term loans
3. Maintaining unemployment insurance contributions at a
reasonable level and increasing them as necessary
To secure its liquidity, the Fund has investments in liquid money
market instruments with less than a year’s maturity at an amount
that equals the Fund’s expenses for one month. When the liquidity
buffer decreases below the above limit, the Fund uses short-term
the Fund has a commercial paper programme totalling EUR 300
(300) million, of which EUR 200 million remain unused. The Fund
facilities (RCF) with four commercial banks. The revolving credit
facilities have not been utilised.
Unused committed revolving credit facilities
31 December
2022
31 December
2021
RCF due in one year (state guarantee) 0 800
RCF due in more than one year * 600 0
Total 600 800
* The contracts are subject to an extension option of 12 months.
Unused uncommitted revolving credit facilities
31 December
2022
31 December
2021
Commercial paper programme 200 200
Total 200 200
and domestic markets for commercial papers.
Employment Fund has the following issuer credit ratings as
• Long-term credit rating AA+, stable outlook
• Short-term credit rating A-1+, stable outlook
At the end of the period under review, EUR 1,200 (1,200) million in
bonds, and EUR 100 (100) million in commercial papers were in
use. No bank loans were in use on 31 December 2022 (EUR 0 on 31
December 2021).
88Financial statement 2022
Fixed interest rate periods for loans
31 Dec 2022
Loans
Nominal value
EUR million
Fixed interest rate
period in years Interest rate Due date Credit rating
Bond 2023 600 0.46 0.00% 16 June 2023 AA+
Bond 2027 600 4.46 0.01% 16 June 2027 AA+
Commercial papers 100 0.25 -0.05% 1–12 months No rating
Total 1,300 2.28
31 Dec 2021 Loans
Nominal value
EUR million
Fixed interest rate
period in years Interest rate Due date Credit rating
Bond 2023 600 1.46 0.00% 16 June 2023 AA+
Bond 2027 600 5.46 0.01% 16 June 2027 AA+
Commercial papers 100 0.25 -0.30% 1–12 months No rating
Total 1,300 3.20
89Financial statement 2022
based on contracts 31 Dec 2022
Less than 6
months
6–12
months
1–3
years
4–7
years
on contracts
Book value
assets (-) / liabilities
Accounts payable 881 0 0 0 881 881
Loans 700,060 0 120 600,120 1,300,300 1,298,609
Liabilities associated with
right-of-use assets 3,588 0 0 0 3,588 3,588
Total 704,529 0 120 600,120 1,304,769 1,303,077
based on contracts 31 Dec 2021
Less than 6
months
6–12
months
1–3
years
4–7
years
on contracts
Book value
assets (-) / liabilities
Accounts payable 861 0 0 0 861 861
Loans 100,060 0 600,120 600,180 1,300,360 1,299,187
Liabilities associated with
right-of-use assets 3,735 0 0 0 3,735 3,735
Total 104,656 0 600,120 600,180 1,304,956 1,303,783
90Financial statement 2022
4.2 Business cycle buffer
Under section 3 of the Act on the Financing of Unemployment
in unemployment insurance contributions due to foreseeable
maintains a business cycle buffer that accrues on the basis of
the difference between the Fund’s income and expenses. In 2022,
the maximum amount of the buffer corresponded to the annual
expenditure for an unemployment rate of six percentage points.
During a severe economic downturn, the Fund may maintain a
assets accrued in the buffer is regulated by the Fund’s investment
principles and the investment plan approved on an annual basis.
plan.
The maximum amount of the buffer is calculated by dividing
Employment Fund’s annual expenditure by the average
unemployment rate for the year and multiplying the result by six.
The following table presents the amount of the business cycle
buffer and the minimum and maximum amounts of the buffer as
Business cycle buffer
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Amount 1,258 633
Maximum amount 1,868 2,220
Minimum amount -1,868 -2,220
91Financial statement 2022
5 UNEMPLOYMENT INSURANCE CONTRIBUTIONS
1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Employer’s unemployment insurance contributions
Employer’s insurance contributions 1,323,956 1,156,781
Employer’s insurance contributions, co-owners 2,021 2,082
Total 1,325,977 1,158,862
Employee’s unemployment insurance contributions
Employee’s insurance contributions 1,420,828 1,238,402
Employee’s insurance contributions, co-owners 2,979 2,705
Total 1,423,808 1,241,107
Collection fee income
Interest on overdue employer contributions 299 340
Interest on overdue employee contributions 330 281
Collection fee income 275 159
Total 905 780
Liability components of employer’s unemployment security
Liability components 19,595 14,944
Accruals 2,729 7,826
Total 22,324 22,770
Compensation based on the Employment Contracts Act
Compensation and lay-off income according to the ECA 974 1,127
Settlement to the Ministry of Social Affairs and Health -489 -473
Total 484 654
Contributions from the Ministry of Social Affairs and Health
Earnings-related unemployment allowance 703,550 896,630
Job alternation compensation 11,012 9,225
Equalisation payment for the previous year -121 2,635
2,892 2,192
Total 717,334 910,681
Total unemployment insurance contributions 3,490,831 3,334,855
92Financial statement 2022
6 FINANCING CONTRIBUTIONS PAID
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Contributions paid by Employment Fund
Other earnings-related unemployment
allowance -684,505 -875,669
Additional days of allowance -138,902 -115,638
Lay-off allowance -191,114 -442,243
Job alternation compensation -14,481 -11,960
Compensation for administrative expenses -10,732 -12,656
Equalisation payment for the previous year 822 -4,627
Total -1,038,912 -1,462,793
Government contribution paid to
unemployment funds
Other earnings-related unemployment
allowance -688,419 -878,234
Job alternation compensation -11,012 -9,225
Unemployment allowance/entrepreneurs -6,963 -8,623
Compensation for administrative expenses -8,169 -9,773
Equalisation payment for the previous year 386 -3,572
Total -714,176 -909,426
Finnish Centre for Pensions
Equalisation payment for the previous year 36,872 -66,779
-633,000 -835,000
Total -596,128 -901,779
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
State Pension Fund
Equalisation payment for the previous year 505 -1,139
-8,570 -10,087
Total -8,065 -11,226
Social Insurance Institution of Finland
Equalisation payment for the previous year 1 1
Basic allowance, additional component,
-242,700 -239,000
Total -242,699 -238,999
Scholarships for qualified employees -11,467 -10,415
Adult education allowance -177,871 -175,307
Collection expenses for benefits -8 -6
Total -189,347 -185,728
Ministry of Economic Affairs and Employment
Equalisation payment for the previous year 0 0
-19,786 -14,391
Total -19,786 -14,391
Member State invoicing for unemployment allowances
Invoiced by Member States -61 -40
Invoiced by the Fund 92 73
Total 31 33
-2,809,083 -3,724,310
93Financial statement 2022
7 ADMINISTRATIVE EXPENSES
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Personnel expenses
-8,474 -7,887
-1,494 -1,341
Social security expenses -297 -258
Total -10,265 -9,486
Personnel expenses, management
salaries, and bonuses
Management Group (excl. Managing Director) -635 -635
Managing Director -197 -169
Board of Directors and Supervisory Board -152 -155
-159 -151
Total -1,143 -1,110
Other administrative expenses
-3,258 -3,019
-450 -575
-232 -975
-1,528 -2,114
-4,177 -4,410
-2,689 -4,801
-12,335 -15,893
Auditor’s fee
Statutory audit -85 -92
Other fees 0 -33
Total -85 -126
Total administrative expenses -22,685 -25,505
Number of personnel
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
Permanent employees 151 135
Fixed-term employees 16 16
Total 167 151
94Financial statement 2022
8 FINANCING COSTS
1 Jan–31 Dec
1 Jan–31 Dec
-1,400 -2,350
Accrued expenses from loans -262 -267
690 730
-972 -1,887
Interest on the contributions paid to the Finnish Centre for Pensions 2,673 1,119
Interest on the contributions paid to the State Pension Fund 106 102
1,806 -666
95Financial statement 2022
9 PROPERTY, PLANT AND EQUIPMENT
Machines and equipment IFRS 16 Right-of-use asset Total
Acquisition costs, 1 Jan 2022 0 0 3,735 3,735
Additions 0 0 198 198
Decreases 0 0 0 0
Acquisition costs, 31 Dec 2022 0 0 3,933 3,933
Accumulated depreciation, 1 Jan 2022 0 0 0 0
Depreciation during the period 0 0 568 568
Accrued depreciation of decreases 0 0 0 0
Accumulated depreciation, 31 Dec 2022 0 0 568 568
Carrying value, 1 Jan 2022 0 0 3,735 3,735
Carrying value, 31 Dec 2022 0 0 3,365 3,365
Machines and equipment IFRS 16 Right-of-use asset Total
Acquisition costs, 1 Jan 2021 1,013 1,741 3,257 6,011
Additions 0 0 3,735 3,735
Decreases -1,013 -1,741 -3,257 -6,011
Acquisition costs, 31 Dec 2021 0 0 3,735 3,735
Accumulated depreciation, 1 Jan 2021 1,013 1,697 2,571 5,281
Depreciation during the period 0 43 686 729
Accrued depreciation of decreases -1,013 -1,741 -3,257 -6,011
Accumulated depreciation, 31 Dec 2021 0 0 0 0
Carrying value, 1 Jan 2021 0 43 686 730
Carrying value, 31 Dec 2021 0 0 3,735 3,735
96Financial statement 2022
10 INTANGIBLE ASSETS
Software Software development expenses Intangible assets in progress * Total
Acquisition costs, 1 Jan 2022 910 13,892 0 14,802
Additions 0 0 1,088 1,088
Transfers between items 0 0 0 0
Acquisition costs, 31 Dec 2022 910 13,892 1,088 15,891
Accumulated depreciation, 1 Jan 2022 856 10,331 0 11,187
Depreciation during the period 41 2,081 0 2,122
Accumulated depreciation, 31 Dec 2022 897 12,412 0 13,309
Carrying value, 1 Jan 2022 54 3,560 0 3,614
Carrying value, 31 Dec 2022 13 1,479 1,088 2,581
Software Software development expenses Intangible assets in progress * Total
Acquisition costs, 1 Jan 2021 910 11,250 1,975 14,135
Additions 0 0 667 667
Transfers between items 0 2,642 -2,642 0
Acquisition costs, 31 Dec 2021 910 13,892 0 14,802
Accumulated depreciation, 1 Jan 2021 803 6,428 0 7,231
Depreciation during the period 53 3,903 0 3,956
Accumulated depreciation, 31 Dec 2021 856 10,331 0 11,187
Carrying value, 1 Jan 2021 107 4,821 1,975 6,902
Carrying value, 31 Dec 2021 54 3,560 0 3,614
* The item ‘Intangible assets in progress’ consists of capitalised development costs, giving rise to an internally generated intangible asset.
In 2022, capitalised development costs consisted of the development expenses required for complying with the new Restructuring Protection Act.
97Financial statement 2022
11 RECEIVABLES AND PAYABLES FROM UNEMPLOYMENT INSURANCE CONTRIBUTIONS
Receivables from unemployment insurance contributions
31 December
2022
31 December
2021
Receivables from employer’s unemployment insurance contribution * 9,911 922
Receivables from employee’s unemployment insurance contribution * 3,154 1,980
Overdue contribution and collection fee receivables * 560 455
Receivables from unemployment insurance contributions 13,626 3,356
701,769 622,164
715,394 625,520
* Includes credit loss provisions for insurance contribution receivables (note 12).
Unemployment insurance contribution liabilities
31 December
2022
31 December
2021
401 298
1,132 1,548
1,533 1,846
98Financial statement 2022
12 LIFETIME EXPECTED CREDIT LOSSES FROM THE UNEMPLOYMENT INSURANCE CONTRIBUTION
Receivables from
employer’s unemployment
Receivables from
employee’s unemployment
Overdue contribution and
Liability component and
receivables based on the
Employment Contracts Act
Adult education
recovered Total
1 January 2022 -2,654 -5,442 -600 -297 -139 -9,132
Change 798 1,233 95 -160 -17 1,949
31 December 2022 -1,856 -4,209 -505 -457 -156 -7,183
Receivables from
employer’s unemployment
Receivables from
employee’s unemployment
Overdue contribution and
Liability component and
Employment Contracts Act
Adult education
recovered Total
1 January 2021 -2,434 -4,944 -522 -206 -120 -8,225
Change -220 -498 -78 -91 -19 -906
31 December 2021 -2,654 -5,442 -600 -297 -139 -9,132
99Financial statement 2022
13 OTHER RECEIVABLES
Non-current other receivables
Other receivables (rental deposit) 0 328
Total 0 328
Current other receivables
30,995 14,311
25,500 0
8,211 9,437
Education allowance receivables 1,719 1,678
3 3
Employer’s liability component receivables and
1,845 1,500
1,343 102
292 5,072
24,341 46
1,020 312
20 0
10 10
Pay security (Ministry of Economic Affairs and Employment) 1,049 13,821
96,348 46,292
Other receivables
Total other receivables 96,348 46,621
100Financial statement 2022
14 NET FAIR VALUE GAINS ON INVESTMENTS
1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
1,753 659
5,263 1,980
671 38
Net interest income 7,034 3,460
Net foreign exchange gains 391 10
Net change in value -35,402 9,115
-15,667 -10,889
-199 -247
Net gains on investments -36,155 4,124
101Financial statement 2022
15 INVESTMENTS
fair value. The measurement of these assets is primarily based
on quoted prices or valuations based on available market data.
Financial instruments carried at fair value have been divided into
three hierarchy levels based on whether they are traded in active
markets, and to what extent the inputs are based on observable
market data, as follows:
Level 1 The valuation is based on quoted prices in active markets
Level 2 The inputs used in valuations are also based, either directly
or indirectly, using valuation techniques on observable inputs
other than those on Level 1.
Level 3 The valuation is based on information other than
observable market data.
102Financial statement 2022
31 December 2022 Level 1 Level 2 Level 3 Total
State and municipal bonds 181,471 49,587 0 231,058
Bank bonds 297,854 0 0 297,854
Corporate bonds 166,536 0 0 166,536
Investments in funds and shares 146,135 13,795 0 159,931
Mezzanine funds 0 0 1,030 1,030
Deposits 0 168,165 0 168,165
0 372,754 0 372,754
Municipal papers 0 7,979 0 7,979
Commercial papers 0 181,288 0 181,288
Alternative investments 0 0 73,928 73,928
Total 791,997 793,568 74,958 1,660,524
31 December 2021 Level 1 Level 2 Level 3 Total
State and municipal bonds 118,939 75,079 0 194,018
Bank bonds 232,603 0 0 232,603
Corporate bonds 148,066 0 0 148,066
Investments in funds and shares 221,257 18,815 0 240,072
Mezzanine funds 0 0 1,988 1,988
Deposits 0 105,140 0 105,140
0 21,017 0 21,017
Municipal papers 0 1,000 0 1,000
Commercial papers 0 61,512 0 61,512
Alternative investments 0 0 40,877 40,877
Total 720,864 282,563 42,865 1,046,293
103Financial statement 2022
1 January 2022 Purchases Sales 31 December 2022
Mezzanine funds 1,988 -130 0 17 -845 1,030
Alternative investments 40,877 2,312 0 30,739 0 73,928
Total 42,865 2,182 0 30,756 -845 74,958
1 January 2021 Purchases Sales 31 December 2021
Mezzanine funds 2,904 454 0 19 -1,389 1,988
Alternative investments 18,566 1,074 0 21,237 0 40,877
Total 21,470 1,528 0 21,256 -1,389 42,865
papers at Level 2
method based on the Euribor or swap curve and on the forward
rate, insofar as elements of foreign currencies are involved.
Based on the management’s judgement, the discount factor has
been adjusted for the effect of changes in the credit risk of the
investment. However, the adjustment has not had any material
impact.
Level 3 are mezzanine funds that are
valued based on valuations prepared by the issuer. Investment
funds have been measured at the net asset value of the fund as
reported by the fund manager as of the reporting date, and they
activity and marketability. Equity investments are quoted on the
amount of equity investments is minor.
104Financial statement 2022
16 CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Bank deposits 224,711 292,326
Total cash and cash equivalents 224,711 292,326
17 LOANS
Long-term loans
Employment Fund bonds 598,205 1,198,945
Total long-term loans 598,205 1,198,945
Short-term loans
600,358 0
100,046 100,242
700,404 100,242
105Financial statement 2022
18 OTHER LIABILITIES
Other liabilities 31 December 2022 31 December 2021
881 861
7,112 3,481
Accruals of adult education allowance 16,290 11,618
8,482 11,270
Ministry of Economic Affairs and
20,835 28,212
6,299 8,319
0 610
72,788 9
534 564
439 531
2,641 7,937
1,213 1,144
3,588 3,735
3,733 5,689
-29 -166
144,805 83,813
106Financial statement 2022
19 LIABILITIES AND RECEIVABLES NOT RECOGNISED
IN THE STATEMENT OF NET POSITION
31 December
2022
31 December
2021
Committed capital 5,250 5,250
Realised -5,056 -5,039
Total investment commitments 194 211
needs of the investment fund. The commitments have no maturity
date.
Operating lease commitments
on non-cancellable lease contracts. On the balance sheet date,
there are three years and three months remaining on the lease
becomes cancellable and subject to a notice period of nine months.
The remaining term of the lease for the car is one year and ten
months.
20 RELATED PARTIES
Related parties of the Fund comprise the Supervisory Board, the
Board of Directors and the Management Group. Employment
Fund’s Supervisory Board is appointed by the Government on
the proposal of the labour market parties. The Supervisory
Board prepares the proposal for the level of unemployment
insurance contributions in its autumn meeting. The Board of
Directors is appointed by the Supervisory Board. The operations
of Employment Fund are supervised by the Financial Supervisory
Authority. The Ministry of Social Affairs and Health also has the
right to receive information about the Fund’s operations.
107Financial statement 2022
The government contributions payable to the unemployment
funds are received from the Ministry of Social Affairs and Health.
The Fund regularly pays contributions to the Finnish Centre for
Pensions, State Pension Fund, Social Insurance Institution of
Finland and the Ministry of Economic Affairs and Employment.
The regulations on related-party transactions set out in the
Limited Liability Companies Act are not applicable to Employment
Fund’s operations. However, Employment Fund complies with IFRS
standards and guidelines regarding related-party transactions
members of the Supervisory Board, members of the Board of
Directors, the Managing Director, the main auditor, the members of
the Management Group, and their spouses, trustees, and controlled
undertakings. Transactions involving related parties are handled
in accordance with the guidelines on related-party transactions
approved by the Board of Directors. There were no major related-
party transactions in 2022.
and they do not include social security contributions. More
detailed breakdowns by each body can be found in the section
presenting Employment Fund’s remuneration report for 2021.
Directors and the Supervisory Board
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
152 155
28 26
Total 180 181
Remuneration of the Management Group
members (excluding the Managing Director)
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
568 612
100 97
Total 668 732
Managing Director’s salaries and bonuses
1 Jan–31 Dec
2022
1 Jan–31 Dec
2021
179 170
31 28
Total 209 197
108Financial statement 2022
SIGNATURES ON THE ANNUAL REPORT AND FINANCIAL STATEMENTS
Helsinki, 28 February 2023
Vesa Rantahalvari,
Chair
Pekka Piispanen,
Vice Chair
Tuomas Aarto
Jarkko Eloranta
Minna Etu-Seppälä
Riikka Heikinheimo
Minna Helle
Markku Jalonen
Patrizio Lainà
Henrika Nybondas-Kangas
Antti Palola
Saana Siekkinen
Heikki Taulu
Pirjo Väänänen
Janne Metsämäki,
Managing Director
Signatures
109Financial statement 2022
AUDITOR’S STATEMENT
An audit report has been provided today.
Helsinki, 1 March 2023
KPMG Oy Ab
Marcus Tötterman
Authorised Public Accountant, KHT
Auditor’s statement
110Financial statement 2022
Auditor’s Report
To the Supervisory Board of the Employment Fund
REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS
Opinion
of the Employment Fund (business
identity code 1098099-7) for the year
statements comprise the statement of net
position, the statement of changes in net
accounting policies.
accordance with International Financial
Reporting Standards (IFRS) as adopted
by the EU and comply with statutory
requirements.
Our opinion is consistent with the
additional report submitted to the Board of
Directors.
Basis for Opinion
We conducted our audit in accordance
with good auditing practice in Finland.
Our responsibilities under good auditing
practice are further described in the
Auditor’s Responsibilities for the
Audit of
the Financial Statements
section of our
report.
We are independent of the fund in
accordance with the ethical requirements
that are applicable in Finland and are
our other ethical responsibilities in
accordance with these requirements.
We have not provided any non-audit
services to the fund.
We believe that the audit evidence we have
provide a basis for our opinion.
Materiality
by our application of materiality. The
materiality is determined based on our
professional judgement and is used to
determine the nature, timing and extent
of our audit procedures and to evaluate
The level of materiality we set is based
on our assessment of the magnitude of
misstatements that, individually or in
aggregate, could reasonably be expected
statements. We have also taken into
account misstatements and/or possible
misstatements that in our opinion are
Auditor’s report
111Financial statement 2022
material for qualitative reasons for the
Key Audit Matters
Key audit matters are those matters that,
in our professional judgment, were of most
statements of the current period. These
matters were addressed in the context of
whole, and in forming our opinion thereon,
and we do not provide a separate opinion
material misstatement referred to in the EU
Regulation No 537/2014 point (c) of Article
10(2) are included in the description of key
audit matters below.
We have also addressed the risk of
management override of internal controls.
This includes consideration of whether
there was evidence of management
bias that represented a risk of material
misstatement due to fraud.
The key audit matter How the matter was addressed in the audit
• The determination and collection of
unemployment insurance contributions by the
Employment Fund is based on legislation. The
unemployment insurance contributions which
have been presented in the statement of changes
in net position for the year 2022, amounted to EUR
3.5 billion.
• The unemployment insurance contributions
must be determined in such a way so that the
Employment Fund is able to meet the obligations
being responsible for. Unemployment insurance
contributions are determined once per calendar
year, in the preceding year.
• The Employment Fund determines the
contribution amounts and makes prepayment
decisions based on the contribution rates
Employment Fund collects these prepayments.
• The Employment Fund monitors defaults
concerning the obligation to pay unemployment
insurance contributions.
• As the amount of unemployment insurance
statements and the determination and
collection of the contributions is subject to legal
matter.
• Our audit has included assessing the process
to determine the unemployment insurance
contributions and evaluating the control
environment.
• We have evaluated the process of invoicing,
collecting and managing unemployment
insurance contributions and have performed
substantive testing on chains of transactions.
• We have assessed and tested the controls for
determining and receiving contributions and for
monitoring of payments received.
•
payment rates applied in the system environment
of the Employment Fund.
• In addition, we have familiarised ourselves
with the methods for accruing unemployment
insurance contributions in accordance with the
accruals principle and accounting for impairment
of unemployment insurance receivables.
• The audit has also included testing of the
management and the transfer of information
between systems.
Auditor’s report
112Financial statement 2022
Responsibilities of the Board of
Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing
Director are responsible for the preparation
give a true and fair view in accordance
with International Financial Reporting
Standards (IFRS) as adopted by the EU, and
fair view in accordance with the laws and
regulations governing the preparation of
with statutory requirements. The Board of
Directors and the Managing Director are
also responsible for such internal control
as they determine is necessary to enable
that are free from material misstatement,
whether due to fraud or error.
the Board of Directors and the Managing
Director are responsible for assessing
the fund’s ability to continue as a going
concern, disclosing, as applicable, matters
relating to going concern and using the
going concern basis of accounting. The
going concern basis of accounting unless
there is an intention to liquidate the fund
or cease operations, or there is no realistic
alternative but to do so.
Auditor’s Responsibilities for the
Audit of the Financial Statements
Our objectives are to obtain reasonable
statements as a whole are free from
material misstatement, whether due to
fraud or error, and to issue an auditor’s
report that includes our opinion.
Reasonable assurance is a high level of
assurance, but is not a guarantee that
an audit conducted in accordance with
good auditing practice will always detect
a material misstatement when it exists.
Misstatements can arise from fraud or error
and are considered material if, individually
or in the aggregate, they could reasonably
decisions of users taken on the basis of the
As part of an audit in accordance with good
auditing practice, we exercise professional
judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of
statements, whether due to fraud
or error, design and perform audit
procedures responsive to those risks,
and obtain audit evidence that is
a basis for our opinion. The risk of not
detecting a material misstatement
resulting from fraud is higher than for
one resulting from error, as fraud may
involve collusion, forgery, intentional
omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal
control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances, but
not for the purpose of expressing an
opinion on the effectiveness of the
fund’s internal control.
• Evaluate the appropriateness of
accounting policies used and the
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113Financial statement 2022
reasonableness of accounting estimates
and related disclosures made by
management.
• Conclude on the appropriateness of the
Board of Directors’ and the Managing
Director’s use of the going concern
basis of accounting and based on the
audit evidence obtained, whether a
material uncertainty exists related
to events or conditions that may cast
to continue as a going concern. If we
conclude that a material uncertainty
exists, we are required to draw attention
in our auditor’s report to the related
or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are
based on the audit evidence obtained
up to the date of our auditor’s report.
However, future events or conditions
may cause the fund to cease to continue
as a going concern.
• Evaluate the overall presentation,
statements, including the disclosures,
represent the underlying transactions
statements give a true and fair view.
We communicate with those charged
with governance regarding, among other
matters, the planned scope and timing of
internal control that we identify during our
audit.
We also provide those charged with
governance with a statement that we
have complied with relevant ethical
requirements regarding independence, and
communicate with them all relationships
and other matters that may reasonably be
thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with
those charged with governance, we
determine those matters that were of most
statements of the current period and
are therefore the key audit matters. We
describe these matters in our auditor’s
report unless law or regulation precludes
public disclosure about the matter or
when, in extremely rare circumstances,
we determine that a matter should not
be communicated in our report because
the adverse consequences of doing so
would reasonably be expected to outweigh
communication.
Auditor’s report
114Financial statement 2022
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
Employment Fund was established in 2019
and became a public interest entity during
fund’s auditors since its establishment.
Other Information
The Board of Directors and the Managing
Director are responsible for the other
information. The other information
comprises the report of the Board of
Directors and the information included in
the Annual Report, but does not include
report thereon.
does not cover the other information.
In connection with our audit of the
is to read the other information and, in
doing so, consider whether the other
information is materially inconsistent with
obtained in the audit, or otherwise appears
to be materially misstated. With respect
to the report of the Board of Directors, our
responsibility also includes considering
whether the report of the Board of Directors
has been prepared in accordance with the
applicable laws and regulations.
In our opinion, the information in the report
of the Board of Directors is consistent with
and the report of the Board of Directors
has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed,
we conclude that there is a material
misstatement of the other information, we
are required to report that fact. We have
nothing to report in this regard.
Helsinki, 1 March, 2023
KPMG OY AB
Marcus Tötterman
Authorised Public Accountant, KHT
Auditor’s report
