Private Unemployment Insurance Companies by ztc36857

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									      LIS variable      V2 Mandatory Employer Contributions
       Contents         Employers' social security contributions (työnantajan sosiaaliturvamaksut)
(national programmes)   VARIABLE NOT AVAILABLE IN ORIGINAL SURVEY
                        Act on Employers' Social Security Contributions of 4 July 1963
                        Sickness Insurance Act of 1963, as amended.
     Legislation
                        National Pensions Act of 8 June 1956
                        Act on Unemployment Contribution of 3 December 1993
      Coverage          All private and public employers.
                        Social Insurance Institution (Sickness Insurance and National Pension Scheme), Central Fund of the
      Beneficiary       Unemployment Funds (Earnings-related Unemployment Insurance), Pension Security Centre
(financed programmes)   (Employment pensions), Insurance Companies (Employment Accident and Occupational Diseases
                        Insurance, Group Life Insurance).
Basis of assessement    Salaries and wages subject to withholding.
                        Sickness Insurance: 1.60% of payroll for private sector, municipality and church; 2.85% of payroll for
                        the State.
                        Employment Accident and Occupational Diseases Insurance : insurance premiums, varying acording
                        to risk (onaverage 1.4% of payroll).
                        Group Life Insurance: 0.1% of payroll.
                        National Pension Scheme: 2.4%/4.0%/4.9% of payroll according to the amount of redemptions and
        Rate
                        ratio to payroll for private sector employers; 3.15% of payroll for municipalities and church, and
                        3.95% of payroll for the State.
                        Earnings-related unemployment insurance: 0.9% on first FIM 5 million of payroll, 3.45% on
                        exceeding amount.
                        Employment pension: 16.8% (average) in the private sector; 21.4% the local government, 18.8% the
                        State and 27% the church.
     Collection         By withholding.
      LIS variable      V7 Mandatory Contributions for Self-Employment
       Contents         Entrepreneurs' social security contributions (työnantajan sosiaaliturvamaksut)
(national programmes)   VARIABLE NOT SEPARATELY AVAILABLE IN ORIGINAL SURVEY (included in V13)
                        Act on Employers' Social Security Contributions of 4 July 1963
     Legislation
                        National Pensions Act of 8 June 1956
       Coverage         Self-employed workers and farmers
      Beneficiary
                        Pension Security Centre (Employment pensions).
(financed programmes)
 Basis of assessement
          Rate          21.0% for farmers and self-employed.
       Collection       By withholding.
    LIS variable      V11 Income Taxes
                      State income taxes on earned income (valtion tulovero ansiotulosta)
     Contents         Tax on investment income (vero pääomatulosta) , excl. tax on capital gains
(national schemes)    Communal tax on earned income (kunnallisvero)
                      Withholding tax at source on interest (korkotulon lähdevero)
                      Income Tax Act of 30 December 1992
    Legislation
                      Act on Tax Withheld at Source from Interest of 28 Decemebr 1990.
                      State income tax on
                                                  Resident individuals and estates of deceased persons.
                      earnings
                      Tax on investment
                                                  Resident individuals and estates of deceased persons.
                      income
     Coverage
                      Communal tax on earned      Individuals and estates of deceased persons who are residents of the
                      income                      municipality in question.
                      Withholding tax at source
                                                  Resident individuals and the domestic estates of deceased persons.
                      on interest
                      State income tax on
                                                  The State.
                      earnings
                      Tax on investment
                                                  The State.
                      income
    Beneficiary
                      Communal tax on earned
                                                  The municipalities.
                      income
                      Withholding tax at source
                                                  The State.
                      on interest

                                                  Taxable income: the ordinary taxable earned income: salaries, wages and
                                                  pensions, social benefits, unemployment benefits, earned income share of
                                                  business income and income from agriculture as well as the earned
                                                  income share of income from partnerships, the earned income share of
                                                  dividends distributed by non-listed companies, scholarships and awards
                      State income tax on
                                                  and 80% of the distributions from employee investment funds.
                      earnings
                                                  Tax units: married persons are taxed separately both on earned income
                                                  and investment income; minors are taxed on their own income, separately
                                                  from their parents; non-residents are taxed on the income in Finland
                                                  according to the Act on Withholding Tax on Non-Residents Income or the
Basis of assessment                               Act on Withholding Tax for Foreign Employees.

                                                  The proceeds from capital, capital gains and other income yielded by
                                                  assets: interest and renatal income, dividends from companies listed on a
                      Tax on investment           stock exchange, benefit from a life insurance policy, income from forestry,
                      income                      distributions by investment funds, income from patents or copyrights (if
                                                  inheritedor acquired for financial consideration), income from the sale of
                                                  materials taken from the ground.
                      Communal tax on earned
                                                Same as for State income tax on earnings.
                      income
                      Withholding tax at source The gross amount of the interest from domestic bank deposits and from
                      on interest               bonds offered for subsription by the public.
                                                  Certain pensions and social benefits, inheritances and gifts, amounts
                                                  received as maintenance for a child, major national and international
                                                  awards, most scholarships, most part of income derived by a resident
                      State income tax on         individual from employment abroad lasting at least 6 months, certain
                      earnings                    compensation for specific expenses paid to persons serving at Finnish
                                                  diplomatic missions or consular posts, indemnification in certain cases,
                                                  daily allowances and travelling allowances, certain benefits provided by
                                                  the employer for the personnel, income from certain natural products.
    Exemptions
                                                  Interest income on bank accounts and certain bonds, on which withholding
                      Tax on investment           tax is levied on the interest income; a capital gain derived from the sale of
                      income                      the taxpayer's own flat or house (if main home); the annual gain from the
                                                  disposal of household effects; exchange rate gains.
                      Communal tax on earned
                                                See State income tax on earnings.
                      income
                      Withholding tax at source
                                                Interest paid by a person other than a bank or an issuer of bonds.
                      on interest
                                                All expenses incurred in acquiring and maintaining chargeable income
                                                (natural deductions) plus: employees' obligatory pension insurance
                                                contributions and the unemployment insurance contribution; subject to
                      State income tax on       certain restrictions, premiums paid by a taxpayer for voluntary pension
                      earnings                  insurance up to FIM 50,000; a standard deduction for work-related
                                                expenses; a deduction granted to sailors and deductions granted to
                                                forestry workers, a discretionary allowance for circumstantial incapacity to
                                                pay taxes; pension income allowance.
    Deductions                                  All expenses incurred in acquiring and maintaining chargeable income
                      Tax on investment
                                                (natural deductions) plus interest expenses if the debt is related to the
                      income
                                                acquisition of taxable income or the acquisition or repair of main home.
                                                Same as for State income tax on earnings, plus: earned income allowance
                      Communal tax on earned (not granted in respect of social security benefits and pensions); disabled
                      income                    person's allowance; student grant allowance; basic allowance for
                                                taxpayers with a small income.
                      Withholding tax at source
                                                No deductions are allowed.
                      on interest
                                                The tax on earned income is levied according to a progressive tax scale
                                                decided annually by Parliament:
                                                - no tax for incomes below FIM 47,599
                                                - 5% for incomes between FIM 47,600 and 63,599
                      State income tax on
                                                - 15% for incomes between FIM 63,600 and 80,999
                      earnings
                                                - 19% for incomes between FIM 81,000 and 112,999
                                                - 25% for incomes between FIM 113,000 and 177,999
       Rate                                     - 31% for incomes between FIM 178,000 and 314,999
                                                - 37.5% for incomes above FIM 315,000
                      Tax on investment
                                                Flat rate of 29%.
                      income
                      Communal tax on earned
                                                Flat rate varying between 15.5 and 19.75% according to the municipality.
                      income
                      Withholding tax at source
                                                29%.
                      on interest
                                                The employer, or any other person or agency paying a salary or other
                      State income tax on
                                                income or benefit is obliged to withhold an advance payment on salaries,
                      earnings
                                                wages and other sums paid;
                      Tax on investment
                                                By annual assessment.
    Collection        income
                      Communal tax on earned
                                                Same as for State income tax on earnings.
                      income
                      Withholding tax at source
                                                The tax is collected mainly by the banks that pay the interest.
                      on interest
    LIS variable      V12 Property / wealth taxes
     Contents         Net wealth tax (or Capital tax) (varallisuusvero)
(national schemes)    Real property tax (kiinteistövero).
                      Net wealth tax              Act on Tax on Net Wealth of 30 December 1992.
    Legislation
                      Real property tax           Act on Real Property Tax of 20 July 1992.
                                                  Individuals who are residents in Finland at the close of the calendar year
                      Net wealth tax
                                                  and deceased residents' estates.
     Coverage
                                                  Persons who own real property situated in Finland in the beginning of the
                      Real property tax
                                                  calendar year (including non-residents).
                      Net wealth tax              The State.
    Beneficiary
                      Real property tax           The municipality in which the real property is situated.
                                                  Taxable income: the taxpayer's total world-wide net wealth. The assests
                                                  are valued at the current prices that they had in the hands of the owner
                                                  and at the place where they were located; the taxable value of publicy
                                                  quoted securities, unit trusts and employment-related options is 70% of
                      Net wealth tax              the market vakue.
Basis of assessment                               Tax unit: spouses are taxed separately, whereas the taxation of minors is
                                                  based on the principle of joitn taxation; the assets of minors and assets of
                                                  teh parent with higher taxable assets are aggregated and their total
                                                  liabilities deducted.
                                                  The taxable value of each property is the value assessed for the wealth
                      Real property tax
                                                  tax.
                                                 Furniture and household effects and other belongings exclusively
                                                 intended for the personal use of the family (excl. items of exceptionally
                      Net wealth tax
                                                 high value such as boats); the right to the most common pensions
                                                 (specified by law); the right to alimony payments; etc.
    Exemptions
                                                 Forests and agricultural land; public places, streets, cemeteries and
                      Real property tax          similar premises (municipalities are not liable to pay tax); diplomatic and
                                                 consular property to the extent provided for in international agreements.
                                                 The taxpayer's debts are deducted from his assets when computing
                                                 taxable net wealth (the deducible amounts are not affected by the
                      Net wealth tax
    Deductions                                   existence of exempt assets); resident individuals are granted fixed
                                                 deductions for every child under 17 and for owner-occupied dwellings.
                      Real property tax          None.
                                                 Levied according to a table set annually by Parliament:
                      Net wealth tax             basic tax amount of FIM 500 on net wealth over FIM 1.1 million and 0.9%
                                                 n the balance that is in excess of FIM 1.1 million.
                                                 Each municipal council determines annually the applicable tax rates within
                                                 statutory limits.
       Rate                                      Each council has to set at least two rates: a general property tax rate
                                                 (varying between 0.5 and 1.0%) and a rate for buildings used primarily as
                      Real property tax
                                                 permanent residences (varying between 0.22% and 0.5%); moreover the
                                                 council can decide that the tax rate applied to buildings used as second
                                                 residences (i.e. summer houses) can be not more than 0.6% higher than
                                                 the tax rate to be applied to permanent residences..
                      Net wealth tax             By means of annual assessement.
    Collection                                   The tax is payable in two instalments if it is above a given limit, otherwise
                      Real property tax
                                                 it is payable in a lump sum.
     LIS variable       V13 Mandatory Employee Contributions
                        Insured persons' social security contributions (työntekijän sosiaaliturvamaksut ), incl:
                        - national sickness insurance payment (sairausvakuutusmaksu)
                        - mandatory employee pension and unemployment insurance payment (työntekijän pakolliset
       Contents
                        työttömyys- ja eläkevakuutusmaksut )
(national programmes)
                        - sailors pension insurance payment (merimieseläkevakuutusmaksut )
                        - other mandatory unemployment and pension (muut pakolliset työttömyys- ja
                        eläkevakuutusmaksut )
                        Act on Sickenss Insurance of 4 July 1963
     Legislation        Act on National Pensions of 8 June 1956
                        Act on Employees Unemployment Contribution of 3 Decemebr 1993
                        Sickness Insurance: all income earners.
      Coverage
                        Earnings-related Unemployment Insurance and Employment Pension: all employees.
                        Social Insurance Institution (Sickness Insurance), Central Fund of the Unemployment Funds
      Beneficiary
                        (Earnings-related Unemployment Insurance), Pension Security Centre (Employment Pension),
(financed programmes)
                        Farmers' Pension Institution (Employment Pension), Insurance Companies.
                        Sickness Insurance: taxable income for municipal taxation.
Basis of assessement
                        Earnings-related Unemployment Insurance and Employment Pension: gross salary.
                        Sickness Insurance: 1.5% on taxable income plus additionally 1.7% on pension income.
                        National Pension Insurance: no employees contributions.
        Rate            Earnings-related unemployment insurance: membership fees to unemployment funds (Funds
                        finance 5.5% of costs for daily allowances); employees' additional contribution of 1.0% of salary.
                        Employment pension: 4.7% of salary.
     Collection         By withholding.
    LIS variable      V14 Other direct taxes
     Contents
                      Church tax (kirkollisvero)
(national schemes)
    Legislation       Income Tax Act of 30 December 1992.
                      Individuals who are members of the local communities of the Evangelical Lutheran or the Orthodox
     Coverage
                      Church.
    Beneficiary       The local communities of the Evangelical Lutheran or the Orthodox Church.
Basis of assessment   Same taxable income as determined for communal tax purposes.
        Rate          Flat rate varying between 1 and 2.25%.
     Collection       The tax is collected jointly with communal income tax.
     LIS variable         V16 Sickness benefits
                          Sickness allowance (sairauspäivärahat suoraan vakuutetulle )
                          Rehabilitation allowance (kuntoutusraha )
       Contents
                          Special care allowance (erityishoitoraha)
(national programmes)
                          Supplementay sickness benefits from benevolent funds (sairaus- ja äitiyspäivärahat verotuksesta,
                          jotka eivät sisälly Kelan tietoihin - mm. täydennyspäivärahat )
                          Sickness Insurance: Law of 1897 (first law), Sickness Insurance Act of 1963, as amended.
      Legislation
                          Rehabilitation Allowances: Rehabilitation Allowances Act
                          Sickness and Rehabilitation Allowances: Employed, self-employed and disabled persons who
                          were involuntarily unemployed aged 16-64.
      Coverage
                          Special care allowances: All residents (not payable to persons receiving unemployment allowance
                          or labour market subsidy).
                                                     The person must be incapable of work due to sickness certified by a
                            Sickness allowance
                                                     doctor.
                                                   Persons between 16 and 64 years of age who are living in Finland and
                                                   are participating in a rehabilitation programme which requires them to be
                                                   absent from their regular job.
                                                   Participation in rehabilitation programmes follows the presence of a
                                                   handicap caused by an illness or injury which significantly impairs the
                                                   person's capacity to work and to function and which could respond to
                          Rehabilitation allowance
                                                   rehabilitation (this is always an individual assessment). Recipients of
                                                   disability, individual early retirement or unemployment pension may also
                                                   undergo rehabilitation, and they are entitled to receive a rehabilitation
                                                   allowance provided that the rehabilitation lasts more than 30 days.
                                                   The rehabilitation assessment is required by law at the latest when the
                                                   client has received sickness allowance for 60 days.
 Qualifying conditions                             Payable to parents who take part in treatment or rehabilitation arranged
                                                   for their child either in a hospital, in a hospital outpatient clinic, in the
                                                   form of a rehabilitation / adaptation training course or in the case of a
                                                   severe illness, at home (in connection with treatment at a hospital or
                                                   outpatient clinic). Special care allowance can also be paid to those
                                                   participating in the treatment or rehabilitation of their partner's child or an
                          Special care allowance
                                                   adopted or foster child.
                                                   The principal qualifying condition is that the recipient, on account of
                                                   participating in the treatment or rehabilitation, cannot carry out his or her
                                                   regular work and is not paid during the leave of absence. Housewives,
                                                   students and self-employed persons can also get special care
                                                   allowance.
                                                   Sickness and maternity benefits granted by law to the members of
                          Supplementary sickness employer's funds in place of the allowances from the National Health
                                  benefits         Insurance. These employer's funds may also pay out other extra
                                                   benefits (in addition to what is required by law) to their members.
                                                   No legal regulations for the continuation of payment of salaries.
                                                   Duration: benefits are limited to 300 days (excluding Sundays) over a 2
                                                   year period, for the same illness.
                                                   Waiting period: 9 days (excl. Sundays), following the day on which the
                                                   illness begins.
                                                   Amount: daily amounts dependent on annual earnings:
                            Sickness allowance     - under FIM 5,390: benefit is means-tested and payable only if sick leave
                                                   lasts more than 60 days with limitations;
                                                   - between FIM 5,400 and FIM 140,560: 70% of 1/300 earnings;
                                                   - between FIM 140,570 and FIM 216,250: FIM 327.97 plus 40% of 1/300
                                                   of earnings exceeding FIM 140,560;
                                                   - above FIM 216,250: FIM 428.89 plus 25% of 1/300 of earnings
                                                   exceeding FIM 216,250.
                                                   Same as the sickness allowance, i.e. determined on the basis of the
                                                   recipient's earned income assessed by the tax authorities, or more
                                                   substantial earnings during the six months preceding application; if the
                                                   recipient has during the month preceding the start of rehabilitation
                                                   allowance received unemployment allowance, labour market subsidy, or
                                                   study grant, the rehabilitation allowance is calculated on the basis of the
                                                   previous benefit.
                          Rehabilitation allowance Recipients of disability, individual early retirement or unemployment
       Benefits
                                                   pension undergoing rehabilitation obtain (in addition to the regular
                                                   pension) a rehabilitation allowance equal to 10% of the total amount of
                                                   the pension, provided that the rehabilitation lasts more than 30 days.
                                                   This rule also applies to recipients of change-of-generations pension.
                                                   During vocational training, persons living independently in their own
                                                   households as well as those with dependants receive a benefit equal to
                                                   at least the study grant under the Act on Student Financial Aid.
                                                 Duration: Special care allowance is generally paid for up to 60 workdays
                                                 per child in a calendar year. Separate counts are kept for hospital care
                                                 and home care. The payment can be extended if the attending physician
                                                 deems it necessary. However, entitlement on account of home care is
                          Special care allowance
                                                 normally limited to 90 workdays.
                                                 Amount: Dependent on claimant's earnings; if the claimant's income is
                                                 too low to qualify as the basis on which the allowance is calculated, the
                                                 allowance is paid out at its minimum rate (FIM 10.09 per day in 2002).
                                                      Includes:
                                                      - sickness and maternity allowances to which funds' members are
                           Supplementay sickness
                                                      entitled by law (equal to National Insurance sickness and maternity
                                    benefits
                                                      allowances?);
                                                      - other voluntary extra benefits.
                          In the case of rehabilitation clients who receive, besides the rehabilitation allowance, a
                          compensation for loss of income according to some other law, only that part of the rehabilitation
                          allowance which exceeds the other compensation is paid. This does not apply to persons on
Accumulation with other   disability pension.
       income             Special care allowance is secondary to special maternity allowance, maternity, paternity or
                          parental allowance, sickness allowance, and compensation paid under the terms of some other
                          law (the excess is paid). Special care allowance is not paid to persons receiving unemployment
                          allowance or labour market subsidy.
                          The rate of the rehabilitation allowance is normally adjusted in January to changes in the TEL
      Adjustment          index.
                                                      Employer and employee contributions (see V2 and V13) plus state
                              Financing principle     subsidy (State pays the cost of minimum daily allowances plus an
                                                      annual subsidy to cover any deficit; in 2000, 16% of total cost).
      Financing
                                    Taxation          All benefits are liable to taxation. No tax reductions.
                              Contributions from
                                    benefits          Not applicable.
      LIS variable        V17S1 Short-term occupational injury and disease benefits
                          Employment Accident and Occupational Diseases short-term benefits, inlcuding daily allowances and
                          helplessness supplements
       Contents
                          Military Accident short-term benefits (for accidents happened before 1991)
(national programmes)
                          Motor Insurance short-term benefits
                          Patient insurance short-term benefits
                          Employment Accident Insurance: Act of 5 December 1895 (first lwa); Employment Accident
                          Insurance Act of 20 August 1948, as amended and Act on Farmers' Employment Accident Insurance
                          (MaTa).
      Legislation         Occupational Diseases Insurance: Act of 12 May 1939 (first law); Occupational Diseases Act of 29
                          December 1988.
                          Military Accident Act.
                          Motor Insurance Act.
                          Employment Accident and Occupational Diseases Insurance: all employees, farmers, some students
                          and trainees; self-employed persons may join voluntarily.
       Coverage           Military Accident Insurance: all persons in the Armed Forces.
                          Motor Insurance: everybody.
                          Patient Insurance: all patients of hospitals, independent doctors, etc.

                                                     The incapacity must result from an employment accident (an accident
                                                     injury occurred at work, including travel between home and work, in
                                                     circumstances deriving from an employment) or an occupational disease
                                                     (any disease which is primarily due to physical, chemical or biological
                                                     factors associated with work done during a period of employment; there is
                           Employment Accident a list of generally recognised occupational diseases), and must be
                               and Occupational      temporary (the disablement must last for at least three consecutive days
                              Diseases benefits      not counting the day on which the accident occurred, up to one year).
                                                     , daily allowances and supplementary benefits are granted; in case of
                                                     permanent incapacity (the person's working capacity -fixed by the
 Qualifying conditions
                                                     competent institution- has to be reduced at least by 10% and the reduction
                                                     in the amount of annual wages has to be at least 5%) or death (if there are
                                                     a surviving spouse and/or children under 18 or 18-24 if studying or
                                                     handicapped), a pension is paid.
                                                     Daily allowances and supplementary additional benefits granted to militars
                          Military Accident benefits injured before 1991 (if accident happened after 1991, it is subject to
                                                     Military Injuries Act, included in V23).
                                                     Paid in case of bodily injuries suffered resulting from the use of a motor
                          Motor Insurance benefits
                                                     vehicle.
                               Patient insurance     Paid if something has gone wrong with medical tretment by compulsory
                                    benefits         patient insurance for hospitals, independent doctors, etc.

                            Employment Accident
                                                   Daily allowance: equal to the sick pay for the first 4 weeks; after 4 weeks
                               and Occupational
                                                   it is the 360th part of the annual earnings of the insured person.
                              Diseases benefits:
                                                   Helplessness supplement : in case of need for another person's care a
                           I. Temporary incapacity
                                                   supplement to the daily allowance of up to FIM 123 per day is also granted.
                          Military Accident benefits
                                                   Daily allowances.(compensation for loss of income): if an injury leads to
                                                   Daily allowance
                                                   temporary disability, the injured is entitled to compensation for the loss of
                                                   income; the amount of the allowance equals the actual amount of income
                                                   lost.
                                                   Compensation for pain and suffering: compensation for pain and suffering
                                                   is paid for injuries which are not insignificant.
                                                   Compensation for permanent defect or handicap: a permanent defect or
                                                   handicap entitles the injured to a non-recurring compensation, which is
                                                   fixed in accordance with standards issued by the Traffic Accident Board.
       Benefits
                                                   Compensation for permanent cosmetic handicap
                                                   Compensation for home care costs : paid to injured who depends on
                          Motor Insurance benefits another person for care while convalescing at home.
                                                   Compensation for clothing: paid to injured for wear and tear on clothing
                                                   caused by use of prothesis or other aid.
                                                   Compensation for increased cost of household management: if an injured
                                                   incurs higher than usual household management costs as a result of the
                                                   injury, e.g. property maintenance costs, all necessary and unavoidable
                                                   costs are compensated under the Insurance.
                                                   Non-recurring compensation for delay in income: this compensation may
                                                   be paid in cases where a traffic accident interrupts professional or
                                                   vocational studies to the extent that the injured's entry to the labour market
                                                   is delayed.
                             Patient insurance
                                  benefits         Daily allowances.

                          Accumulation with new earnings possible; if combined with pensions or other social security benefits,
Accumulation with other   those are reduced.
       income             Compensation from a motor insurance policy take precedence over compensations from the national
                          health insurance and employment pensions; compensations from employment accident and military
                          injuries insurance, on the other hand, take precedence over motor insurance compensations.
                          All benefits are annually adjusted according to the employment pension index (TEL-index) prescribed
      Adjustment
                          by law.
                                                      Employment Accident and Occupational Diseases Insurance: employer
                                                      premiums, varying according to risk (average 1.4% of payroll); insurance
                              Financing principle
                                                      for farmers is financed by the state for 32.95%; mixed system, partly
                                                      funded and pay-as-you go.
      Financing
                                                      Daily allowances are subject to taxation (see V19S1 for pension
                                    Taxation
                                                      deductions); all other allowances and grants are not subject to taxation.
                              Contributions from
                                     benefits         No contributions.
     LIS variable         V17S2 Long-term occupational injury and disease benefits
                          Employment Accident and Occupational Diseases Insurance pensions
       Contents           Military Accident Insurance pensions (for accidents happened before 1991)
(national programmes)     Motor Insurance pensions
                          Patient insurance pensions
                          Employment Accident Insurance: Act of 5 December 1895 (first lwa); Employment Accident
                          Insurance Act of 20 August 1948, as amended and Act on Farmers' Employment Accident Insurance
                          (MaTa).
      Legislation         Occupational Diseases Insurance: Act of 12 May 1939 (first law); Occupational Diseases Act of 29
                          December 1988.
                          Military Accident Act.
                          Motor Insurance Act.
                          Employment Accident and Occupational Diseases Insurance: all employees, farmers, some
                          students and trainees; self-employed persons may join voluntarily.
      Coverage            Military Accident Insurance: all persons in the Armed Forces.
                          Motor Insurance: everybody.
                          Patient Insurance: all patients of hospitals, independent doctors, etc.
                                                     The incapacity must result from an employment accident (an accident
                                                     injury occurred at work, including travel between home and work, in
                                                     circumstances deriving from an employment) or an occupational disease
                                                     (any disease which is primarily due to physical, chemical or biological
                            Employment Accident factors associated with work done during a period of employment; there is
                               and Occupational      a list of generally recognised occupational diseases) and must be
                               Diseases benefits     permanent (the person's working capacity -fixed by the competent
                                                     institution- has to be reduced at least by 10% and the reduction in the
 Qualifying conditions                               amount of annual wages has to be at least 5%) or death (if there are a
                                                     surviving spouse and/or children under 18 or 18-24 if studying or
                                                     handicapped).
                                                     Benefits granted to militars injured before 1991 (if accident happened
                          Military Accident benefits
                                                     after 1991, it is subject to Military Injuries Act, included in V23).
                                                     Paid in case of bodily injuries suffered resulting from the use of a motor
                          Motor Insurance benefits
                                                     vehicle.
                               Patient insurance     Paid if something has gone wrong with medical tretment by compulsory
                                    benefits         patient insurance for hospitals, independent doctors, etc.

                                                   Reference earnings (E): total earnings the insured probably would have
                                                   earned in one year without the employment injury or occupational
                                                   disease; E is at least FIM 48,500 per year.
                                                   Formula: 85% x E; after the age of 65: 70% x E.
                                                   Proportional reduced amount of the full pension in case of partial
                            Employment Accident
                                                   incapacity; if the pension is not more than 20% of the full pension, it can
                               and Occupational
                                                   be converted into a lump-sum upon the request of the insured person.
                              Diseases benefits:
                                                   Inconvenience allowance (haittaraha): paid in addition to the pension,
                          II. Permanent incapacity
                                                   graded into 20 classes according to the degree of incapacity (maximum
                                                   equals 60% of the minimum average annual earnigns applied for
                                                   calculation of cash benefits).
                                                   Helplessness supplement: in case of need for another person's care a
                                                   supplement to the daily allowance or the pension of up to FIM 123 per
                                                   day is also granted.
                                                   Wdow/er's pension: 40% x E if there are no other beneficiaries (the
       Benefits                                    amount is deceasing when the number of child beneficiaries increases).
                            Employment Accident
                                                   Orphan's pension: 25% x E if there is 1 child, 40% with 2 children, 50%
                               and Occupational
                                                   with 3 children and 55% with 4 or more children.
                              Diseases benefits:
                                                   Maximum ot total pension to all beneficiaries: 70% x E
                                   III. Death
                                                   Funeral grant (hauausavustus) : in case of death, a funeral grant
                                                   amounting to FIM 20,300 is paid to the survivors.
                          Military Accident benefits
                                                   Disability and survivors' pensions.
                                                   Disability pension (recurring benefits): if an injury leads to permanent
                                                   disability, the injured is entitled to pension benefits; the amount of the
                                                   benefit equals the actual loss of income.
                          Motor Insurance benefits Family pension: i f an accident results in a death, the deceased's family is
                                                   entitled to family pension.
                                                   Funeral expenses: if an accident results in a death, funeral expenses are
                                                   compensated up to a reasonable amount.
                             Patient insurance
                                  benefits         Disability and survivors' pensions.
                          Accumulation with new earnings possible; if combined with pensions or other social security
                          benefits, those are reduced.
Accumulation with other   Compensation from a motor insurance policy take precedence over compensations from the
       income             national health insurance and employment pensions; compensations from employment accident and
                          military injuries insurance, on the other hand, take precedence over motor insurance
                          compensations.
                          All benefits are annually adjusted according to the employment pension index (TEL-index)
      Adjustment
                          prescribed by law.
                                                      Employment Accident and Occupational Diseases Insurance: employer
                                                      premiums, varying according to risk (average 1.4% of payroll); insurance
                              Financing principle
                                                      for farmers is financed by the state for 32.95%; mixed system, partly
                                                      funded and pay-as-you go.
                                                      Disability and survivors' pensions are subject to taxation (see V19S1 for
      Financing
                                    Taxation          pension deductions); all other allowances and grants are not subject to
                                                      taxation.
                                                      Sickness insurance premium for pensioners of 1.5% of taxable income
                              Contributions from      plus additionally 1.7% on pension income.
                                    benefits          No other contributions.
     LIS variable         V18S1 Disability pensions
                          Disability pensions (työkyvyttömyyseläke) from the National Pension Insurance (kansaneläke) ,
                          including:
                          - disability pension
                          - rehabilitation cash benefit (kuntoutustoiminnan tuki) (replaced the temporary disability pension on
                          1.1.1996)
                          - individual early retirement
       Contents
                          Disability pensions (työkyvyttömyyseläke) from private sector employment pension insurance
(national programmes)
                          (yksityisen sektorin työ- ja yrittäjäeläkkeet) , including:
                          - ordinary or partial disability pension
                          - rehabilitation cash benefit
                          - individual early retirement
                          Disability pensions (työkyvyttömyyseläke) from public sector occupational pensions (julkisen sektorin
                          työeläkkeet)
                          First law: law of 31 May 1937.
      Legislation
                          Basic legislation: National Pension Act of 1956.
                          National Pension Insurance: compulsory coverage for all Finnish citizens aged 16 to 65. Coverage also
                          for some residents.
      Coverage
                          Private sector employment pension insurance
                          Public sector employment pension insurance



                                                      Payable to disabled persons whose other pensions and compensations do
                                                      not exceed the amount allowed for minimum national pension, who live in
                                                      Finland and satisfy the residence requirement, who are between 16 and 64
                                                      years of age and who have an illness, defect or injury that prevents them
                            Disability pension from from engaging in gainful employment by which they could support
                               National Pension       themselves or from working in their own household or who are permanently
                                  Insurance           blind, without mobile ability or need constant attendance.
                                                      Entitlement is conditional upon exhaustion of the maximum sickness
                                                      allowance period (300 days, except in the case of persons disabled before
                                                      age 15), even if there was no entitlement to sickness allowance, and upon
                                                      rehabilitation assessment (if rehabilitation is assessed possible, the
                                                      applicantion will be turned down and the applicant will be referred to suitable
                                                      rehabilitation and other services (see Rehabilitation benefits, V16).
                                                      The claimant must be between 60 and 64 years of age (for persons born in
                                                      1943 or earlier, the lower limit is still 58 years); his/her capacity for work
                                                      must have been permanently reduced to an extent that he or she cannot
                                                      reasonably be expected to continue working, taking into account the
                                                      combined effect of the following factors: illness, defect or injury, the overall
                          Individual early retirement
                                                      effects of aging on the claimant's ability to cope with work demands, long
                            pension from National
                                                      work history, work-induced strain and fatigue and circumstances at work;
                              Pension Insurance
                                                      claimant must have stopped working or reduced his or her working hours
                                                      under the TEL mandatory insurance limit; the claimant must live in Finland
                                                      and fulfil the residence requirement and the recipient's other pensions and
 Qualifying conditions
                                                      compensations must not exceed the maximum limit for eligibility for a
                                                      minimum national pension.
                                                      Temporary disability pension awarded if it is shown that the person's ability
                              Rehabilitation cash     to work will be restored through treatment or rehabilitation; it may only be
                             benefit from National    awarded in such a case that a rehabilitation plan has been devised for the
                              Pension Insurance       employee and that this will serve for the course of treatment and
                                                      rehabilitation.

                                                    Ordinary disability pension is payable to an insured person (accrual status
                                                    from the first day of employment for employees and at least 4 months of
                                                    affiliation for self-employed) who has lost at least 3/5 of his work capacity
                                                    (2/5 for partial disability pension ) through illness and whose incapacity is
                           Disability pensions from estimated to last for at least one year.
                                private sector      Rehabilitation cash benefit is payable to an insured person (as above)
                            employment pension      whose ability to work is assessed to be restorable by rehabilitation.
                                  insurance         Individual early retirement pension is payable to an insured person (as
                                                    above) who has reached the age of 60, has had a long working career and
                                                    who is incapable of continuing at his/her present employment because of
                                                    work-related stress and fatigue and other factors; according to transitional
                                                    provisions, the age limit is 58 for persons born in 1943 or earlier.


                           Disability pensions from
                          public sector employment
                             pension insurance
                                                      Duration : ordinary disability pension is granted for an indefinite period (i.e.
                                                      until the recipient's circumstances change in way that affect his or her
                                                      entitlement); at the age of 65 the disability pension is automatically converted
                                                      into old-age pension.
                                                      Amount: full amount between FIM 2,231 and FIM 2,655 according to marital
                                                      status and municipality (a full pension is awarded if resident in Finalnd 80%
                           Disability pension from    of time after age 16 and before disability, or if disability arose before age
                              National Pension        21and while living in Finalnd); otherwise pension is adjusted to the length of
                                 Insurance            residence; reduced by 50% of the amount of employment pension and other
                                                      Finnish and foreign pensions.
                                                      Pensioners care allowance: payable to to people receiving a full disability
                                                      pension (or rehabilitation cash benefit, see V16) to compensate for costs
                                                      arising from home care or other special expenses caused by illness or injury;
                                                      3 categories depending on the degree of strain: FIM 284, FIM 708 and FIM
                                                      1,415 per month.

                                                      Duration : from the entitlement to the pensin for as long as the conditions are
                                                      fulfilled, converted automatically to old-age pension at the age of 65.
                          Individual early retirement
                                                      Amount: same rate as a disability pension, other things being equal.
                            pension from National
                                                      If the recipient has earnings in excess of the specified limit, the pension is
                              Pension Insurance
                                                      reduced by 50%. If the earnings exceed 60% of the pensionable earnings on
       Benefits                                       which the employment pension is based, both the national pension and the
                                                      employment pension are suspended.
                              Rehabilitation cash
                             benefit from National    Same as disability pension.
                              Pension Insurance
                                                      Duration: from the end of the maximum perod of payment of sickness
                                                      benefit (300 days) for the ordinary and rehabilitation pensions (entitlement is
                                                      more flexible for individual early retirement) for as long as the conditions are
                                                      fulfilled; all three are converted automatically to old-age pension at the age of
                                                      65.
                           Disability pensions from
                                                      Reference earnings: same as for old-age pensions (see above).
                                 private sector
                                                      Formula: 1.5% accrued pension per accrual year (accrual rates for credited
                             employment pension
                                                      periods is 1.5% up to age 50, 1.2% for 50-59 years and 0.8% freom 60
                                   insurance
                                                      years) for all three pensions; 50% of the full pension for partial disability
                                                      pension; the rehabilitation cash benefit is further incremented by 33% for
                                                      periods of active rehabilitation arranged by the employment pension
                                                      institution.
                                                      No supplements for spouse or children.
                           Disability pensions from
                          public sector employment
                             pension insurance


                          Only one pension from National Pension Scheme may be paid (old-age, disability or survivors).
                          Employment pension and other Finnish or foreign pensions received reduce the national pension by
                          50%.
                          Accumulation with earnings: not possible with disability pension (the pension can be suspended for 6-
Accumulation with other   12 months if the pensioner finds employment); in the case of individual early retirement pension, the
       income             pensioner is allowed to work while receivng the pension within the following limits: if earings exceed FIM
                          1,206 per month but do not exceed 3/5 of the pensionable salary, the full pension is changed to a partial
                          pension; otherwise, the payment of the pension is suspended for the working period.
                          The employment disability pension is secondary to the employment accident insurance benefit, and only
                          the part of employment pension in excess of the compensation under employment accident insurance is
                          payable; the same applies to traffic insurance compensations.
                          All benefits are annually adjusted according to the employment pension index (TEL-index) prescribed by
      Adjustment
                          law.
                                                       National Insurance Pensions: employers' contributions and state subsidy;
                                                       current income financing (pay-as-you-go); state pays 29% of pension
                                                       expenditure plus an annual state subsidy to cover any deficit plus some
                              Financing principle
                                                       specific allowances.
                                                       Disability Allowance and Pensioners' Care Allowance: financed by the
                                                       state.
                                                       National Insurance Pensions: fully liable to taxation and taxed as other
      Financing
                                                       earnings (e.g. wages), but the legislation foresees pensions deductions (see
                                   Taxation
                                                       V19S1).
                                                       Disability Allowance and Pensioners' Care Allowance: not taxed.
                                                       National Insurance Pensions: sickness insurance premium for pensioners
                              Contributions from       of 1.5% of taxable income plus additionally 1.7% on pension income; no
                                    benefits           other contributions.
                                                       Disability Allowance and Pensioners' Care Allowance: none.
      LIS variable        V18S2 Disability allowances
                          Pensioners care allowance (elakkeensaajien hoitotuki) from National Pension Insurance
       Contents
                          (kansaneläke)
(national programmes)
                          Disability allowance (vammaistuki)
                          First law: law of 31 May 1937.
      Legislation
                          Basic legislation: National Pension Act of 1956.
                          Disability and individual early retirement pension: compulsory coverage for all Finnish citizens aged
       Coverage           16 to 65. Coverage also for some residents.
                          Dsability allowances: all residents.
                                                      Payable to pensioners aged 65 or more (or aged less than 65 but
                               Pensioners care        receiving a full disability pension, rehabilitation subsidy) to compensate for
                                   allowance          costs arising from home care or other special expenses caused by illness
 Qualifying conditions                                or injury.
                                                      Paid to 16-64 year old persons who are not in receipt of a pension but
                             Disability Allowance     whose health is weakened through illness or injury to compensate for
                                                      hardship, necessary services, etc.

                                                     Payable to to people receiving a full disability pension (or rehabilitation
                              Pensioners care
                                                     cash benefit, see V16) to compensate for costs arising from home care or
                                allowance
                                                     other special expenses caused by illness or injury; 3 categories depending
       Benefits
                                                     on the degree of strain: FIM 284, FIM 708 and FIM 1,415 per month.
                                                     There is a three-tier scale of benefits depending only on the degree of
                            Disability Allowance     disability: a lower rate of FIM 424, a higher rate of FIM 990 and a special
                                                     rate of FIM 1,839 per month.
Accumulation with other
       income
                          All benefits are annually adjusted according to the employment pension index (TEL-index)
      Adjustment
                          prescribed by law.
                              Financing principle    Financed by the state.
                                   Taxation          Not taxable.
      Financing
                              Contributions from
                                   benefits          None.
     LIS variable         V19S1a Universal old-age pensions
                          Old-age and early old-age pensions (vanhuuseläke ) from the National Pension Insurance
                          (kansaneläke ), including:
                          - basic amount
       Contents           - addition to basic (lisäosa) (only for recipients of old-age pension, no new supplemensts granted
(national programmes)     after 1.1.1996)
                          - spouse increase (puolisolisä) (no new supplemensts granted after 1.1.1996)
                          - child increase (lapsikorotus) (no new supplemensts granted after 1.1.1996)
                          - pensioners care allowance (elakkeensaajien hoitotuki) (only for recipients of old-age pension)
      Legislation         National Pensions Act, 1956
       Coverage           Compulsory coverage for all Finnish citizens aged 16 to 65. Coverage also for some residents.
                                                     Minimum period of membership: 3 years of residence in Finland (i.e.
                                                     domicile in Finalnd and spend there at least half of each year) after the
                                                     age of 16 for Finnish citizens (employees from EU/EEA memberr
                                                     countries as well as their family members, refugees and stateless
                                                     persons are regarded as Finnish citizens; citizens of certain countries
                              Old-age pension        with which Finland has signed a social security agreement have the
 Qualifying conditions                               same rights as Finnish citizens); citizens of other countries are entitled
                                                     to a Finnish national pension if after the age of 16 they have lived in
                                                     Finland for an uninterrupted period of at least 5 years.
                                                     Standard retirement age: 65 years (deferment is possible with no upper
                                                     age limit).
                                                     Early old-age pension can be taken as early as from 60 year old, under
                           Early old-age pension     the same conditions as regular old-age pension (see above).
                                                     Basic amount: full amount (40 years of residence in Finland between
                                                     the ages of 16 and 65) between FIM 2,231 and FIM 2,655 per month
                                                     according to marital status and municipality; if years of residence are
                                                     less than 40, the pension is proportional to the length of residence; the
                                                     amount is increased by 0.6% per month beyond the age of 65 (deferred
                                                     pension).
                                                     Addition to basic: between FIM 1,681 and FIM 2,086 (1996 values) per
                                                     month according to marital status and municipality for fulll pension (no
                                                     new supplements granted after 1.1.1996).
                                                     Spouse increase: FIM 81 per month (gradually reduced by one fifth a
                              Old-age pension        year starting from 1997 and will be abolished by 2001) if the spouse has
                                                     no income of his/her own (no new supplements granted after 1.1.1996).
       Benefits                                      Child increase: FIM 105 per month per child (gradually reduced by one
                                                     fifth a year starting from 1998 and will be abolished by 2002), payable if
                                                     the recipient has a child (or more) under the age of 16 who lives in the
                                                     pensioner's household and whom the pensioner supports (at least by
                                                     making child maintenance payments) (no new supplements granted
                                                     after 1.2.96).
                                                     Pensioners care allowance: payable to old-age pensioners to
                                                     compensate for costs arising from home care or other special expenses
                                                     Basic amount: the pension is permanently reduced by 0.4% per month
                                                     if it is taken earlier (early old-age pension).
                           Early old-age pension     Early old-age pension cannot be supplemented by pensioners' care
                                                     allowance or housing allowance, but font-veteerans' supplement is
                                                     available.
                          Only one pension from National Pension Scheme may be paid (old-age, disability or survivors).
Accumulation with other   Employment pension and other Finnish or foreign pensions received reduce the national pension
       income             by 50%.
                          Accumulation with earnings: earnings do not affect entitlement or amount of old-age pension.
                          Annually on the basis of the evolution of the cost-of-living index (taking into account the cost-of-
      Adjustment
                          living classification of the municipality in which the recipient lives).
                                                       Employers' contributions (see V2) and state subsidy. Current income
                                                       financing (pay-as-you-go). State pays 29% of pension expenditure plus
                              Financing principle
                                                       an annual state subsidy to cover any deficit plus some specific
                                                       allowances.
                                                       National Insurance Pensions (basic amount and addition to basic) are
                                                       fully liable to taxation and taxed as other earnings (e.g. wages), but the
                                                       legislation foresees pensions deductions:
                                                       The amount of the full pension deduction for pension income per year is
                                                       FIM 34,900 (single person) and FIM 29,500 (married persons) for local
                                                       taxes, and FIM 23,200 (for all) for Government taxes.
      Financing                                        When pension is higher than the full pension amount, the deduction is
                                    Taxation
                                                       reduced by 70% of the exceeding amount (pension deduction = full
                                                       deduction - 70% (pension - full deduction).
                                                       No deduction is given when the pension is higher than FIM 84,755
                                                       (single) or FIM 71,641 (married) for local taxes and FIM 56,341 (for all)
                                                       for Government taxes.
                                                       Spouse increase, child increase and Pensioners Care Allowance are not
                                                       liable to taxation.
                                                       Sickness insurance premium for pensioners of 1.5% of taxable income
                              Contributions from       plus additionally 1.7% on pension income.
                                    benefits           No other contributions.
     LIS variable         V19S1b Employment-related old-age pensions
                          Old-age pensions (vanhuuseläke) from private sector employment pension insurance (yksityisen
                          sektorin työ- ja yrittäjäeläkkeet ), including:
       Contents
                          - old-age pension
(national programmes)
                          - early retirement pension
                          - part-time pension
                          Seamen's Pension Act 72/1956 (MEL)
                          Employees' Pensions Act 395/1961 (TEL)
                          Temporary Employees' Pensions Act 134/1962 (LEL)
      Legislation
                          Self-employed Persons' Pensions Act 468/1969 (YEL)
                          Farmers' Pensions Act 467/1969 (MYEL)
                          Pension Act for Performing Artists and Certain Other Employee Groups 1056/1998 (TaEL)
                          All employees, self-employed persons and farmers are covered under statutory employment
                          pension insurance and are entitled to a pension under the employment pension acts under which
                          they have been insured.
      Coverage
                          Self-employed and farmers are liable to take out insurance after 4 months of self-employment and
                          when the annual insurable income exceeds FIM 28,947 for self-employed and FIM 14,473 for
                          farmers).
                                                   Must be at least 65 years old (deferment is possible), must have at least
                                                   1 month of employment and salary must be above given minimum for
                                                   employees (e.g TEL: FIM 1,206 per month); for shorter employment
                               Old-age pension
                                                   periods and/or income below the minimum, pension is accrued if the
                                                   total annual income is above FIM 3,806; for self-employed and farmers
                                                   from beginning of insurance.
 Qualifying conditions
                          Early-retirement pension Possible from the age of 60.
                                                     Payable to persons aged 58-64 (temporarily reduced to 56 years
                                                     between 1.7.1998 and 31.12.2002), if working hours are reduced
                             Part-time pension
                                                     considerably (16-28 hours per week) and the income is reduced to 35-
                                                     70% of earlier earnings.
                                                     Reference earnings: pensionable salary is based on the earnings of the
                                                     last 10 years and calculated separately for each employment
                                                     relationship; the number of years to be taken into account will be
                                                     gradually raised from 4 to 10 years starting from 1996; the full 10-year
                                                     period being fully in effect by the year 2005; years with exceptionally low
                                                     annual income will not be taken into account; no ceiling for reference
                              Old-age pension
                                                     earnings.
       Benefits                                      Formula: the target is 60% of pensionable salary after 40 years; the
                                                     accrual rate is 1.5% of reference earnings per year, increased to 2.5%
                                                     after the age of 60; the pension is permanently reduced by 0.4% per
                                                     month if it is taken early, whereas it is increased by 0.6% per month
                                                     beyond the age of 65);
                                                      The pension is permanently reduced by 0.4% per month if it is taken
                          Early-retirement pension
                                                      early
                              Part-time pension       Part-time pension amounts to 50% of the loss of income.
                          Accumulation of old-age pension with with earnings is possible; within certain limits, the pensioner
                          is allowed to work while receiving disability pensions: in case of ordinary disability pension, if
                          earnings are 40% but not 60% of the pensionable salary, the full disability pension is changed to a
                          partial disability pension, whereas if earnings exceed 60% of the pensionable salary, the pension
                          is withdrawn; in case of individual early retirement pension, if earnings exceed FIM 1,206 per
Accumulation with other
                          month but do not exceed 3/5 of the pensionable salary, the full pension is changed to a partial
       income
                          pension, whereas if earnings exceed 3/5 of teh pensionable salary, the payment of the pension is
                          suspended for the working period.
                          Only one pension from National Pension Scheme may be paid (old-age, disability or survivors).
                          Employment pension and other Finnish or foreign pensions received reduce the national pension
                          by 50%.
                          Earnings-related benefits payable to pensioners aged 65 and older are adjusted yearly according
      Adjustment          to 20% of the annual average increase in wage (or 50% if pensioner is under age 65) and 80% of
                          annual average increase in price (50% if pensioner is under age 65) changes.
                                                    Employers', self-employed and employees' contributions (see V2, V7
                                                    and V13) plus state subsidy for farmers' and self-employed persons'
                             Financing principle
                                                    pension schemes (to cover any deficit) and seamen's pension scheme
                                                    (exactly 33%). Current income financing (pay-as-you-go).
                                                    Pensions are fully liable to taxation and taxed as other earnings (e.g.
                                                    wages), but the legislation foresees pensions deductions.
                                                    The amount of the full pension deduction for pension income per year is
                                                    FIM 34,900 (single person) and FIM 29,500 (married persons) for local
                                                    taxes, and FIM 23,200 (for all) for Government taxes.
      Financing
                                  Taxation          When pension is higher than the full pension amount, the deduction is
                                                    reduced by 70% of the exceeding amount (pension deduction = full
                                                    deduction - 70% (pension - full deduction).
                                                    No deduction is given when the pension is higher than FIM 84,755
                                                    (single) or FIM 71,641 (married) for local taxes and FIM 56,341 (for all)
                                                    for Government taxes.
                                                    Sickness insurance premium for pensioners of 1.5% of taxable income
                              Contributions from    plus additionally 1.7% on pension income.
                                   benefits         No other contributions.
      LIS variable        V19S1c Old-age pensions for public sector employees
                          Old-age pensions (vanhuuseläke) from private sector employment pension insurance (yksityisen
                          sektorin työ- ja yrittäjäeläkkeet ), including:
       Contents
                          - old-age pensions
(national programmes)
                          - early retirement pensions
                          - part-time pensions
                          State Employees' Pensions Act (VEL)
      Legislation         Local Government Employees' Pensions Act (KVTEL)
                          Church pensions (KiEL)
                          State Employees' Pensions Act (VEL): officials and employees of the State, part of comprehensive
                          and upper secondary school headmasters, teachers and other personnel; pension provision for
                          persons in the service of the Bank of Finland and the Social Insurance Institution has been arranged
                          on the basis of the pension regulations of these institutions; the pensions for employees in the
                          service of the Orthodox Church of Finland is normally determined according to VEL; pension
                          provision for the President of the Republic, members of the Council of State and members of
       Coverage           Parliament has been prescribed by separate acts.
                          Local Government Employees' Pensions Act (KVTEL): persons employed by the municipalities.
                          Church pensions (KiEL): persons employed by or in the service of the Evangelical-Lutheran
                          Church, parishes, federation of parishes or other associations of parishes; a priest or lecturer
                          employed by an association, foundation or institution, and whom the chapter has given the right to
                          perform the work, deaconess with teaching at a deaconesses' institution as her or his primary
                          source of income, persons in the service of an organisation between churches, or comparable
                          organisation, persons in the service of another Evangelical-Lutheran Church or its parish working
 Qualifying conditions
        Benefits
Accumulation with other   Only one pension from National Pension Scheme may be paid (old-age, disability or survivors).
        income            Employment pension and other Finnish or foreign pensions received reduce the national pension by
                          Annually on the basis of the evolution of the cost-of-living index (taking into account the cost-of-
      Adjustment
                          living classification of the municipality in which the recipient lives).
                                                       Employers', self-employed and employees' contributions (see V2, V7 and
                                                       V13) plus state subsidy for farmers' and self-employed persons' pension
                               Financing principle
                                                       schemes (to cover any deficit) and seamen's pension scheme (exactly
                                                       33%). Current income financing (pay-as-you-go).
      Financing
                                    Taxation           Child increase is free from tax.
                                                       Sickness insurance premium for pensioners of 1.5% of taxable income
                               Contributions from      plus additionally 1.7% on pension income.
                                    benefits           No other contributions.
     LIS variable         V19S3 Early retirement benefit
                          Unemployment pensions (työttömyyseläke) from:
       Contents           - National Pension Insurance (kansaneläke)
(national programmes)     - private sector employment pension insurance (yksityisen sektorin työ- ja yrittäjäeläkkeet)
                          - public sector employment pension insurance (julkisen sektorin työeläkkeet)
                          National Pensions Act, 1956
                          Seamen's Pension Act 72/1956 (MEL)
                          Employees' Pensions Act 395/1961 (TEL)
                          Temporary Employees' Pensions Act 134/1962 (LEL)
                          Self-employed Persons' Pensions Act 468/1969 (YEL)
      Legislation
                          Farmers' Pensions Act 467/1969 (MYEL)
                          Pension Act for Performing Artists and Certain Other Employee Groups 1056/1998 (TaEL)
                          State Employees' Pensions Act (VEL)
                          Local Government Employees' Pensions Act (KVTEL)
                          Church pensions (KiEL)
                          National pension insurance: Compulsory coverage for all Finnish citizens aged 16 to 65. Coverage
                          also for some residents.
                          Employment pension insurance: all employees, self-employed persons and farmers are covered
       Coverage           under statutory employment pension insurance and are entitled to a pension under the employment
                          pension acts under which they have been insured; self-employed and farmers are liable to take out
                          insurance after 4 months of self-employment and when the annual insurable income exceeds FIM
                          28,947 for self-employed and FIM 14,473 for farmers).

                                                Payable to persons who have been unemployed for a long time and who
                                                are aged between 60 and 64; can present a statement on unemployment
                                                issued by the employment office; have been issued a certificate showing
                                                that they have received unemployment allowance for the maximum
                                                period allowed (for at least 500 days or until age 60); have worked at
                                                least 5 years out of the previous 15.
                                                Furthermore, the claimant must be living in Finland and fulfil the
                                                residence requirements and his or her other pensions and
                          National unemployment
                                                compensations must not exceed the maximum limit allowed to receive
                                 pension
                                                the minimum national pension.
                                                Unemployment pension can be awarded under the rules applicable
                                                before 1 January 1994 to applicants who were born in 1938 or earlier and
                                                entitled to unemployment allowance or adult education grant under the
                                                labour market training provisions as of 1 January 1994; in this case, the
                                                requirement regarding previous employment (five out of fifteen years) is
                                                waived; persons aged 60 or over can seek a pension as soon as they
                                                have received unemployment allowance for 200 days.
 Qualifying conditions
                                                       Payable to persons who have been unemployed for a long time and who
                                                       are aged between 60 and 64; can present a statement on unemployment
                                                       issued by the employment office; have been issued a certificate showing
                                                       that they have received unemployment allowance for the maximum
                                                       period allowed (for at least 500 days or until age 60); have worked at
                            Unemployment pension
                                                       least 5 years out of the previous 15.
                               from private sector
                                                       It can be awarded under the rules applicable before 1 January 1994 to
                             employment pension
                                                       applicants who were born in 1938 or earlier and entitled to unemployment
                                    insurance
                                                       allowance or adult education grant under the labour market training
                                                       provisions as of 1 January 1994; in this case, the requirement regarding
                                                       previous employment (five out of fifteen years) is waived; persons aged
                                                       60 or over can seek a pension as soon as they have received
                                                       unemployment allowance for 200 days.
                            Unemployment pension
                                from public sector
                             employment pension
                                    insurance
                            National unemployment
                                     pension           The amount corresponds to the disability pension (see V18S1).
                            Unemployment pension
                               from private sector
                             employment pension
       Benefits
                                    insurance          The amount corresponds to the disability pension (see V18S1).
                            Unemployment pension
                                from public sector
                             employment pension
                                    insurance          The amount corresponds to the disability pension (see V18S1).
                          Only one pension from National Pension Scheme may be paid (old-age, disability or survivors).
Accumulation with other
                          Employment pension and other Finnish or foreign pensions received reduce the national pension by
       income
                          50%.
                          Annually on the basis of the evolution of the cost-of-living index (taking into account the cost-of-
      Adjustment
                          living classification of the municipality in which the recipient lives).
                               Financing principle     Tax financed. Current income financing (pay-as-you-go).
                                                       Pensions are fully liable to taxation and taxed as other earnings (e.g.
                                     Taxation
                                                       wages), but the legislation foresees pensions deductions (see V19S1).
      Financing
                                                       Sickness insurance premium for pensioners of 1.5% of taxable income
                               Contributions from      plus additionally 1.7% on pension income.
                                     benefits          No other contributions.
     LIS variable         V19S4 Survivors pensions
                          National survivors pension (kansaneläke - perhe-eläke ):
                          - spouse's pension (leskeneläke ), incl. basic amount (perusmäärä ) and additional amount
                          (täydennysmäärä ),
                          - orphans pension (lapseneläke ).
                          Survivors' benefits (perhe-eläke) from private sector employment pension insurance (yksityisen
       Contents
                          sektorin työ- ja yrittäjäeläkkeet) , including:
(national programmes)
                          - suriving spouse's pension
                          - former spouse's pension
                          - orphan' s pension
                          Survivors' benefits (perhe-eläke) from public sector employment pension insurance (julkisen
                          sektorin työeläkkeet)
                          National Pensions Act, 1956
                          Survivors' Pension Act, 1969
                          Seamen's Pension Act 72/1956 (MEL)
                          Employees' Pensions Act 395/1961 (TEL)
                          Temporary Employees' Pensions Act 134/1962 (LEL)
      Legislation         Self-employed Persons' Pensions Act 468/1969 (YEL)
                          Farmers' Pensions Act 467/1969 (MYEL)
                          Pension Act for Performing Artists and Certain Other Employee Groups 1056/1998 (TaEL)
                          State Employees' Pensions Act (VEL)
                          Local Government Employees' Pensions Act (KVTEL)
                          Church pensions (KiEL)
                          National pension insurance: Compulsory coverage for all Finnish citizens aged 16 to 65.
                          Coverage also for some residents.
                          Employment pension insurance: all employees, self-employed persons and farmers are covered
       Coverage           under statutory employment pension insurance and are entitled to a pension under the
                          employment pension acts under which they have been insured; self-employed and farmers are
                          liable to take out insurance after 4 months of self-employment and when the annual insurable
                          income exceeds FIM 28,947 for self-employed and FIM 14,473 for farmers).
                                                  Deceased insured person: 3 years of residence after the age of 16,
                                                  resident in Finland at the time of death: the deceased must have been
                                                  under the age of 65 at the time of marriage for surviving spouse
                                                  pension.
                                                  Surviving spouse: must have resided in Finland 3 years after the age of
                                                  16, must not be receiving a Finnish national pension or a comparable
                                                  foreign benefit, and:
                                                  - if widow/er has or had common child with the deceased, he/she must
                            National survivors    be under the age of 65;
                                  pensions        - otherwise he/she must have been at least 50 at the time of death and
                                                  the marriage must have occurred before she/he was aged 50 and the
                                                  marriage must have lasted at least 5 years. There are some exceptions
                                                  for widow/ers born before 1 July 1950.
                                                  Children: the orphan must have been the child (incl. adoptive and
                                                  foster) of the deceased, or in case of step children, the deceased must
 Qualifying conditions                            have been the child's legal guardian and must have lived in the same
                                                  houshold). The orphan must be under the age of 18 or aged 18-20 if full-
                                                  time student.
                                                  Deceased person: must have been insured at time of death.
                                                  Spouses with common child (with the deceased insured): must be
                                                  married before the deceased reached the age of 65.
                          Survivors' pension from
                                                  Spouses with no (common) child: the widow/er need to have reached
                               private sector
                                                  the age of 50, the marriage lasted at least 5 years and the mariage
                           employment pension
                                                  occurred before the deceased turned 65 and the widow/widower turned
                                 insurance
                                                  50.
                                                  Former spouse: must receive alimony from the deceased.
                                                  Children: must be under 18.
                          Survivors' pension from
                               public sector
                           employment pension
                                 insurance
                                                  Initial pension: for the first 6 months the spouse receives a basic
                                                  amount of FIM 1,173 - FIM 1,408 per month (proportional to the lenght
                                                  of the period which the deceased lived in Finland); this amount can be
                                                  increased (additional amount ), depending on the spouse's other
                                                  income, up to FIM 2,231-FIM 2,655.
                                                  Continuing pension: after 6 months, the basic amount of the pension is
                                                  continued only if the surviving spouse is supporting a child under the
                             National Pension
                                                  age of 18; if there is no child the entitlement and amount of the
                                Insurance:
                                                  additional amount depend on other income and property.
                            spouse's pension
                                                  Both the initial and continuing pensions are stopped when the widow or
                                                  widower turns 65.
                                                  In case of remarriage, pension ceases if the widow/er is under the age
                                                  of 50 and a grant of 1 year pension is given, provided that the pension
                                                  had been paid for at least 12 months and that the spouse died before 1
                                                  July 1990. Remarriage after age 50 does not affect the penion
                                                  entitlement, provided remarriage occured after 1 July 1990.

                                                    Orphans having lost one parent: a basic amount of FIM 275 per month
                              National Pension      is paid if the child is under the age of 18 or aged 18-20 if full-time
                                 Insurance:         student; additional amount is paid only to a child under the age of 18
                              orphan's pension      (full amount is FIM 367 per month, reduced by other survivor pensions).
                                                    Orphans having lost both parents: separate pension after both parents.
       Benefits
                                                  Surviving spouse : the pension is 17-50% of the pension of the
                                                  deceased, depending on how many children are entitled to a child
                                                  pension; the pension equals the pension of the deceased when the
                                                  beneficiaries are a widow/er and two children; if the deceased person
                                                  was not retired at the time of death, the survivors' pension is calculated
                                                  on the basis of the invalidity pension the deceased would have been
                          Survivors' pension from entitled to at the time of death; pension ceases if the widow/er is under
                               private sector     the age of 50 and remarries (grant of 3 years' pension).
                           employment pension Former spouse: spouse's pension is divided: the part to be paid to the
                                 insurance        former spouse depends on the amount of alimony.
                                                  Orphans having lost one parent: the pension is 33-83% of the pension
                                                  of the deceased, depending on how many children are entitled to a child
                                                  pension (see above).
                                                  Orphans having lost both parents: separate pensions after both parents;
                                                  a total addition of 2/12 of teh total of both pensions is paid to all children
                                                  together.

                          Survivors' pension from
                               public sector
                           employment pension
                                 insurance

                          Recipients of survivor's pension who begin to receive a disability, unemployment, indiviudual early
                          retirement or early old-age pension from KELA, or a similar foreign benefit, cannot at the same
Accumulation with other
                          time receive national survivor's pension. However, spouses are entitled to any part of the spouse's
       income
                          initial pension that exceeds the other pension received from KELA. Child disability allowance and
                          disability allowance can be paid to an orphan's pension recipient.
      Adjustment          Annually on the basis of the evolution of the cost-of-living index.
                              Financing principle    Tax financed. Current income financing (pay-as-you-go).
                                                     Survivors' pensions are subject to tax (see V19S1 for a brief description
                                    Taxation         of taxation), with the exception of national survivors' pensions based on
      Financing                                      a death that occurred before 1 July 1990.
                                                     Sickness insurance premium for pensioners of 1.5% of taxable income
                               Contributions from    plus additionally 1.7% on pension income.
                                    benefits         No other contributions.
       LIS variable       V19SR State old-age and survivors benefits n.e.c.
        Contents
                          Special pension for spouses of diplomatic staff
 (national programmes)
       Legislation
        Coverage
  Qualifying conditions
         Benefits
Accumulation with other
         income
       Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
      LIS variable        V20S1 Child allowances
       Contents
                          Family allowance (lapsilisät )
(national programmes)
                          First law: Law of 22 July 1948
      Legislation
                          Current legislation: Child Allowances Act of 21 August 1992.
       Coverage           All residents.
 Qualifying conditions    The child must be resident in Finland and under the age of 17.
                          Duration: from the birth of the first child until the eighteenth birthday of the last one.
                          Monthly amount: FIM 535 for the first child, FIM 657 for the second, FIM 779 for the third, FIM 901
       Benefits           for the fourth and FIM 1,023 for the fifth and each subsequent child.
                          There is a supplement of FIM 200 for each child of a single parent (persons who are living together
                          but not married do not qualify).
Accumulation with other
       income
     Adjustment           In line with the cost-of -living index.
                               Financing principle      Benefits are paid out of public funds.
                                    Taxation            Family allowances are not subject to taxation.
      Financing
                               Contributions from
                                                        No contributions.
                                    benefits
      LIS variable        V20S2 Advance maintenance
       Contents
                          Maintenance allowance for children (elatustuki )
(national programmes)
      Legislation
       Coverage           All residents.
                          Payable by the municipality to a single parent if parenthood has not been established or the mother
 Qualifying conditions
                          or father does not fulfill the obligation to pay maintenance.
      Benefits            FIM 669 per month.
Accumulation with other
       income             No restrictions.
     Adjustment
                             Financing principle    Tax financed.
                                  Taxation          Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits          No contributions.
      LIS variable        V20SR Child/family benefits n.e.c.
       Contents
                          Child disability allowance (lapsen hoitotuki)
(national programmes)
      Legislation         Child Allowances Act of 21 August 1992.
       Coverage           All residents.
 Qualifying conditions    Payable to families with severely disabled and chrnonically ill children under 16 living in Finland.
                          Duration: the allowance is awarded for a specified period or until the child'd 16th birthday.
                          Amount: the benefit is graded into 3 clasess depending on the degree of strain on the family:
                          - the lower rate of FIM 424 per month is payable for a child who, on account of an illness, injury or
                          handicap needs treatment and rehabilitation for at least 6 months, placing the family under additional
       Benefits           financial or other strain;
                          - the higher rate of FIM 990 per month if the treatment and rehabilitation of the child imposes a
                          considerable strain,
                          - the special rate of FIM 1,839 per month if the treatment and rehabilitation of a child impoese an
                          extreme strain in the family.
Accumulation with other
       income             No restrictions.
     Adjustment
                             Financing principle     Tax financed.
                                  Taxation           Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits           No contributions.
     LIS variable         V21S1 Unemployment insurance benefits
                          Basic Unemployment Allowance (työttömyysturvan peruspäiväraha)
       Contents
                          Earnings-related Unemployment Allowance (työttömyyspäivärahan ansiosidon. osa - sis.
(national programmes)
                          vuorottelukorvaus ym .)
                          First law: Act of 1917.
      Legislation         Current legislation: Unemployment Allowances Act and Law of Unemployment Funds of 24 August
                          1984, as amended; Law on Financing of Unemployment Benefits of 24 July 1998.
                          Basic Unemployment Allowance: employees and self-employed persons aged 17 to 64.
       Coverage           Earnings-related Unemployment Allowance: employees and self-employed persons aged 17 to 64
                          who are members of an unemployment fund.
                                                    The allowance is payable to unemployed persons who who are between
                                                    ages 17 and 64 and hliving in Finland, who are fit and available for work,
                                                    who have registered with an employment office (no registration
                                                    necessary if an employer informs the employment office of an impending
                           Basic Unemployment       temporary dismissal), who are seeking full-time employment, for whom
                                Allowance           no suitable job or training has been found, and who satisfy the
                                                    employment condition (at least 43 weeks of employment during the last
                                                    24 months and during each wekk at least 18 hours for employees, and
                                                    at least 24 months of entrepreneurship during the last 48 months for self-
                                                    employed).
 Qualifying conditions
                              Earnings-related      Same as same as for Basic Unemployment Allowance; in addition, must
                              Unemployment          have fulfilled the employment condition while being insured as a member
                                Allowance           of an unemployment fund.
                                                    Workers who shorten the weekly working time by at least one day or by
                                                    corresponding daily hours, unemployed persons who accept part-time
                                                    work or not longer than one month lasting full-time work, and persons
                           Partial unemployment     who have lost their principal employment and have a secondary
                                                    employment or entrepreunership may get a reduced (Basic/Earnings-
                                                    Related) Unemployment Allowance if they satisfy the respective
                                                    qualifying conditions.
                                                    Waiting period: 7 working days during 8 consecutive weeks.
                                                    Duration: payable for up to 500 days, until 65 years of age (a person
                                                    who has reached the age of 57 may be paid until the age of 60); when a
                                                    person fulfills the qualifying period again, the calculation of teh period of
                           Basic Unemployment
                                                    500 days shall begin afresh if he once again starts to receive daily
                                Allowance
                                                    allowance.
                                                    Amount: the basic daily allowance consists of FIM 122 per day (5 days a
                                                    week); daily supplements for children under 18: FIM 24 for 1 child, FIM
                                                    35 for 2 children and FIM 46 for 3 or more children.
                                                    Waiting period and duration: same as for Basic Unemployment
    Size of benefits                                Allowance.
                                                    Reference earnings: average earnings of qualyfiying period of 43 weeks
                                                    for employees and earnings on which premiums have been paid for the
                              Earnings-related
                                                    last 24 months (with a ceiling equal to the reported income confirmed as
                              Unemployment
                                                    the basis for the pension under the self-employed persons' pension act)
                                Allowance
                                                    for self-employed.
                                                    Formula: 42% of the difference between the daily salary and the basic
                                                    allowance; if the monthly salary is greater than 90 times the basic
                                                    amount, the earnings amount is 20% of the excess.
                                                    The amount per month paid for total unemployment minus 50% of salary
                           Partial unemployment     or other earned income.
                          Unemployment allowance may be drawn together with other types of sovcial insurance benefits,
                          except the following: training subsidy, parenthood allowance (or leave), special care allowance,
                          early old-age pension, individual early retirement pension, old-age pension, disability pension or
                          some other benefit payable on account of full work disability, unemployment pension, change-of-
Accumulation with other
                          generations pension, farm closure subsidy, rehabilitation allowance, compensation for loss of
       income
                          income under the terms of an accident or motor insurance policy or the Military Injuries Act insofar
                          as they relate to rehabilitation, regular pay or other compensation during a temporary layoff,
                          additional end-of-service financial benefit ("golden handshake"), holiday pay.
                          Accumulation with earnings from work is possible (see partial unemployment).
                          The basic unemployment allowance is adjusted annually on the basis of the evolution of the cost-
      Adjustment
                          of-living index.
                                                  Basic unemployment allowance: taxes (23% in 2000) and contributions
                                                  from salaried employees who are not members of unemployment funds
                                                  (77%). See V13.
                              Financing principle Earnings-related unemployment allowance: contributions (three party
                                                  financing: employees, employers, state); the state pays the cost of basic
      Financing                                   daily allowances for the first 500 days plus a subsidy for administration
                                                  expenses. See V2 and V13.
                                                  Benefits are liable to taxation. No limit of income for tax relief ot tax
                                    Taxation
                                                  reduction.
                               Contributions from
                                     benefits     No contributions.
     LIS variable         V21S2 (Re)training allowances
                          Training subsidy (koulutustuki )
                          Study grant for mature students (aikuisopintoraha ), replaced by Adult Education Allowance
       Contents           (aikuiskoulutustuki ) in 2001
(national programmes)     Training allowance (omaehtoisen opiskelun tuki )
                          Redundancy payment for unemployed civil servants (virkamieslain toistuvaiskorvaus )
                          Study benefit for dismissed persons (erorahan aikuiskoulutuslisä )
                          Training allowance and Training subsidy: Act on Labour Market Training for Adults
                          Study benefit for dismissed persons: Seamen's Pension Act 72/1956 (MEL), Employees' Pensions
      Legislation         Act 395/1961 (TEL), Temporary Employees' Pensions Act 134/1962 (LEL), Self-employed
                          Persons' Pensions Act 468/1969 (YEL), Farmers' Pensions Act 467/1969 (MYEL), Pension Act for
                          Performing Artists and Certain Other Employee Groups 1056/1998 (TaEL)
                          Training allowance and Training subsidy: employees and self-employed persons aged 17 to 64.
       Coverage           Study benefit for dismissed persons: employees and self-employed persons covered by the above-
                          mentioned Acts (see V32S1 for details).
                                                      For unemployed persons whose employment office has directed them to
                               Training subsidy       a labour market retraining course. Must satisfy the employment condition
                                                      (see Unemployment Allowance, V21S1).
                                                    Paid to 30-54 years old full-time student according to the following
                                                    eligibility criteria: no basic vocational training, at least 5 years from
                                                    previous full-time studies, had been employed or self-employed at least
                           Study grant for mature
                                                    one year before starting studies, or had become unemployed max. 12
                                 students
                                                    months before starting studies and had received daily unemployment
                                                    benefit and had been employed or self-employed for at least one year
                                                    before becoming unemployed.
                                                    Must be registered with the employment office as unemployed and must
                                                    be seeking employment; must have within the previous 12 months been
                                                    on unemployment allowance or labour market subsidy for at least 86
                                                    days; must have been employed or self-employed for at least 10 years
                                                    out of the last 15; must, on their own initiative, find a full-time training or
 Qualifying conditions                              education programme that will provide them with vocational
                                                    qualifications.
                             Training allowance
                                                    Days for which training allowance is paid are deducted from the total 500-
                                                    day eligibility period for unemployment allowance. However, the eligibility
                                                    period is extended to 586 days.
                                                    The training allowance is available only once and for one training
                                                    programme only (which means that it is not possible to switch to a
                                                    different programme while in receipt of the allowance). To become re-
                                                    entitled, one must in the meantime have worked for at least 10 years.
                          Redundancy payment for
                              unemployed civil    Paid repeatedly to civil servants who have become unemployed.
                                  servants
                                                  Must have lost the (main) job because dismissal due to financial
                                                  economical reasons; must be between 30 and 64 year-old; must have
                              Study benefit for
                                                  worked for that employer for at least 1 year; must start within 2 years of
                            dismissed persons
                                                  dismissal a full-time occupational-oriented course lasting at least 1
                                                  month.
                              Training subsidy
                                                  The amount given was 25 per cent of normal monthly income received
                           Study grant for mature
                                                  before starting the studies, however, minimum 1540 FIM and maximum
                                  students
                                                  2800 FIM per month.
                                                  Duration: for a maximum of 500 days.
    Size of benefits                              Amount: The training allowance is equal to the unemployment benefit
                            Training allowance    (unemployment allowance or labour market subsidy) the recipient was
                                                  receiving before starting school. No waiting period is required.
                                                  Maintenance allowances are not available.
                              Study benefit for   Duration: up to a maximum of 18 months during a period of 24 months.
                            dismissed persons     Amount: Flat-rate montlhy amount (EUR 185 in 2002).
                          Any earnings or social security benefits which the recipient may have during the training are
                          deducted from the training allowance in the same way as they would be deducted from the
Accumulation with other   unemployment allowance or labour market subsidy. Means testing, however, is not applied. If a
       income             student works e.g. during school holidays and the employment condition is fulfilled, the training
                          allowance, if paid at its maximum rate, is not recalculated and the full 500-day eligibility for
                          unemployment allowance is not restored.
      Adjustment
                                                    Training allowance and Training subsidy: Financed from KELA for
                                                    persons on basic unemployment allowance or labour market subsidy,
                                                    and from unemployment funds for those receiving earnings-related
                             Financing principle    unemployment allowance (see V21S1 and V25S3 for exact financing
                                                    principles).
      Financing                                     Study benefit for dismissed persons: financed from unemployment
                                                    funds.
                                                    Benefits are liable to taxation. No limit of income for tax relief ot tax
                                  Taxation
                                                    reduction.
                             Contributions from
                                  benefits          No contributions.
      LIS variable        V21S3 Placement/resettlement benefits
       Contents           Redundancy pay (erohara )
(national programmes)     Start-up allowance (yrittäjäksi ryhtyvän työttömän työllistämistuki )
                          Redundancy pay: Seamen's Pension Act 72/1956 (MEL), Employees' Pensions Act 395/1961
                          (TEL), Temporary Employees' Pensions Act 134/1962 (LEL), Self-employed Persons' Pensions Act
      Legislation
                          468/1969 (YEL), Farmers' Pensions Act 467/1969 (MYEL), Pension Act for Performing Artists and
                          Certain Other Employee Groups 1056/1998 (TaEL).

                          Redundancy pay: employees and self-employed persons covered by the above-mentioned Acts
       Coverage           (see V32S1 for details).
                          Start-up allowance: registered unemployed persons.
                                                     Must have lost the (main) job because dismissal due to financial
                                                     economical reasons; must be between 46 and 64 year-old; must have
                              Redundancy pay
                                                     worked for a Finnish employer during at least 5 years; must have
 Qualifying conditions                               registered as unemployed at the latest 5 weeks after the dismissal.
                                                     Must be a registered unemployed person; must have some experience of
                             Start-up allowance      self-employment (or relevant education); and the company must have
                                                     chances to suceed,
                                                     Lump-sum payment consisting of:
                                                     - flat-rate basic amount (perusosa ) of FIM 4,000 (in 2002);
                                                     - additional amount (ansiolisä ) varying betweem FIM 2,000 and FIM
                              Redundancy pay
                                                     4,000 (2002 values) depending on wage;
       Benefits                                      - additional amount (palvelusvuosilisä ) depending on employment length
                                                     and working hours (FIM 200 every year of full-time employment).
                                                     Duration: up to 10 months.
                             Start-up allowance      Amount: usually EUR 420.47 a day up to a maximum of EUR 756.85
                                                     (2002 values).
Accumulation with other
       income             Start-up allowance cannot be paid together with Unemployment Allowance.
     Adjustment
                                                     Redundancy pay: financed from unemployment funds.
                             Financing principle
                                                     Start-up allowance:
      Financing                  Taxation            The Start-up allowance is taxable.
                             Contributions from
                                  benefits           No contributions.
      LIS variable        V22S1 Wage replacement
                          Parents allowances from Sickness Insurance (Sairausvakuutus ), including:
                          - maternity allowance (äitiysraha ),
       Contents
                          - paternity allowance (isyysraha ),
(national programmes)
                          - parental allowance (vanhempainpäiväraha )
                          - special maternity allowance (eritysäitiysraha ).
      Legislation         Sickness Insurance Act of 4 July 1963, as amended.
       Coverage           All residents.
                          Must have been resident in Finland for at least 180 days immediately before the expected date of
                          confinement, and in the case of paternity allowance, the father must also be living together with the
 Qualifying conditions    mother of the child.
                          In case of adoption, same condition applies to the time immediately before the adoptive parent took
                          ove the care of the child.
                                                      Paid to the mother for 105 consecutive calendar days except Sundays, 30-
                                                      50 of which before expected date of confinement.
                             Maternity allowance
                                                      Minimum cash benefit if FIM 60 per day, otherwise see Sickness
                                                      allowance (V16).
                                                      Can be paid to a father for a maximum of 18 days.
                              Paternity allowance     Minimum cash benefit if FIM 60 per day, otherwise see Sickness
                                                      allowance (V16).
                                                      Paid immediately after the maternity allowance to either the mother or the
                                                      father for 158 days (excl. Sundays).
                                                      In case of multiple birhts 60 days are added to this period for each
       Benefits                                       additional child, and in case of premature birht, the payment period is
                                                      extended by as many workdays as the birth occurred before the due date,
                              Parental allowance
                                                      minus 30 workdays.
                                                      In case of adoption of a child under the age of 7 the parents' allowance is
                                                      paid for a minimum of 180 days.
                                                      Minimum cash benefit if FIM 60 per day, otherwise see Sickness
                                                      allowance (V16).
                                                      Paid during pregnancy if the mother is exposed to chemical substance,
                               Special maternity      radiation or an infectious disease at her work.
                                   allowance          Minimum cash benefit if FIM 60 per day, otherwise see Sickness
                                                      allowance (V16).
Accumulation with other
       income             No restrictions.
     Adjustment
                                                    Employer and employee contributions (see V2 and V13) plus state
                             Financing principle    subsidy (State pays the cost of minimum daily allowances plus an annual
                                                    subsidy to cover any deficit; in 2000, 16% of total cost).
      Financing
                                 Taxation           Benefits are liable to taxation. No tax reductions.
                             Contributions from
                                  benefits          Not applicable.
      LIS variable        V22S2 Birth grants
       Contents
                          Maternity grant (äitiysavustus ).
(national programmes)
      Legislation         Maternity Grant Act of 28 May 1993.
       Coverage           All residents.
                          Must be resident in Finland, pregnancy must have lasted at least 154 days and must have
 Qualifying conditions    undergone a health examination at a maternal welfare clinic or a doctor before the end of the fourth
                          month of pregnancy. Adoptive parents who are resident in Finland are eligible as well.
                          Mothers can choose between a maternity package containing child care items and a cash benefit of
       Benefits           FIM 760.
                          The benefit is awarded to each child born.
Accumulation with other
       income             No restrictions.
     Adjustment
                             Financing principle     Tax financed.
                                  Taxation           The benefit is not subject to taxation.
      Financing
                             Contributions from
                                  benefits           No contributions.
      LIS variable        V22S3 Child care leave benefits
       Contents           Child home care allowance (lasten kotihoidon tuki )
(national programmes)     Partial care allowance (osittainen hoitoraha )
                          First law: Law of 22 July 1948
      Legislation
                          Current legislation: Child Allowances Act of 21 August 1992.
       Coverage           All residents.
                              Child home care        For families who care for their children under the age of 3 at home or by
                                 allowance           other arrangement instead of using day care provided by municipalities.
 Qualifying conditions
                                                      Paid to a parent who has a child under the age of 3 and who reduces
                           Partial care allowance
                                                      working hours to maximum 30 hours a week.
                                                      Duration: it can be granted so that it immediately follows parental
                                                      allowance, until the youngest child reaches the age of three, or transfers
                                                      to municipal day care, or the family chooses to receive private daycare
                               Child home care        allowance instead.
       Benefits                   allowance           Basic amount: FIM 1,500 per month.
                                                      Sibling increase: FIM 500 (if sibling under 3 years) or FIM 300 (if sibling 3-
                                                      6 years).
                                                      Means-tested supplement: maximum FIM 1,000 per month.
                            Partial care allowance FIM 375 per month.
                          Child home care allowance is not available at the same time as private day care allowance (benefits
                          paid for each child under school age in the family directly to the provider of care when a family
                          arranges the care of the child privately). If the child is in municipal daycare, child home care
                          allowance or private day care allowance cannot be paid. The only exceptions are if the child is in a
Accumulation with other
                          part-day pre-school class run by the municipality or starts school early.
       income
                          The child home care allowance may have to be deducted from unemployment benefits such as
                          earnings-related or basic unemployment allowance, labour market subsidy, or training allowance, as
                          well as from job alternation compensation regardless of whether the benefits are paid to the same
                          family member.
      Adjustment          In line with the cost-of -living index.
                               Financing principle      Benefits are paid out of public funds.
                                                        The child home care allowance and the partial care allowance are subject
                                    Taxation
      Financing                                         to taxation (with no tax reductions).
                               Contributions from
                                                        No contributions.
                                    benefits
      LIS variable        V22SR Maternity and other family leave benefits n.e.c.
       Contents           Child home care allowance for disabled children (alaikäisen lapsen vanhemmalle maksettu
(national programmes)     omaishoidon tuki)
                          First law: Law of 22 July 1948
      Legislation
                          Current legislation: Child Allowances Act of 21 August 1992.
       Coverage           All residents.
 Qualifying conditions
        Benefits
Accumulation with other
        income
      Adjustment          In line with the cost-of -living index.
                               Financing principle      Benefits are paid out of public funds.
                                    Taxation
      Financing
                               Contributions from
                                                        No contributions.
                                    benefits
      LIS variable        V23 Military/Veterans/War Benefits
                          Military injuries act benefits (sotilasvammalain mukaiset korvaukset ), including:
                          - disability (työkyvyttömyyseläke ),
                          - helplessness (avuttomuuslisä ),
                          - supplement (täydennyskorko ),
       Contents           - care pension (huoltoeläke ),
(national programmes)     - continuing care pension (jatkohuoltoeläke ),
                          - additional pensions (lisäeläkkeet )
                          National front-veterans supplement (rintamalisä ), including:
                          - regular front-veterans supplement (rintamalisä ),
                          - additional front-veterans supplement (ylimääräinen rintamalisä ).
                          Military Injuries' Act,
      Legislation
                          Front-Veterans Pensions Act,
       Coverage           All Finnish nationals and residents.
                                                     Compensation to people injured or taken ill in Finnish wars and their
                                                     spouses and after death to their widows and close relatives. Include also
                             Military injuries act
                                                     compensation for conscripts and certain other people who have served in
                                   benefits
                                                     the defence forces and in the Finnish UN troops when injuries and
                                                     sicknesses have occured before 1 January 1991.
                                                   Regular supplement is payable to Finnish citizens or nationals of other
                                                   countries residing in Finland who have been granted one of four different
 Qualifying conditions                             service badges, or who have a certificate from the National War Archives
                                                   showing that they participated in mine clearing operations between 1945
                                                   and 1952.
                           National front-veterans
                                                   Additional supplement is payable to those pension recipients who receive
                                supplements
                                                   both the regular supplement and a national pension or are in receipt of a
                                                   special annuity payable under the MIlitary Injuries' Act (preventing them
                                                   from receiving national pension).
                                                   Applications for front-veterans' supplements are no longer being
                                                   received.
                                                   The Military Injuries Act provides life annuities with their supplements,
                                                   supplementary annuities, compensation for medical care, refirbishing of
                                                   housing, rehabilitation and institutional care, it also provides funerals
                                                   assistance, survivors’ pension, survivors’ supplementary pension and
                                                   lump-sum compensation.
                                                   In addition, municipalities are compensated the costs of disabled war
                                                   veterans’ home help services, housing services, financial support for care
                            Military injuries act
                                                   at home, rehabilitation and institutional care, which are given to at least
                                  benefits
       Benefits                                    30 per cent invalids.
                                                   Moreover, compensation is alsp provided - within the framework of the
                                                   annual allocations in the State’s budget - for the rehabilitation of the
                                                   spouses and widows of disabled war veterans and war widows. In
                                                   addition, the unit compensates the municipalities for the costs of
                                                   rehabilitating front veterans. The unit grants and pays a front veterans’
                                                   allowance to foreign volunteer front soldiers.
                           National front-veterans The additional supplement is equal to 25-45% of the amount by which the
                                supplements        recipient's national pension exceeds an amount specified by law.
Accumulation with other
       income             No restrictions.
     Adjustment
                             Financing principle
                                                     The regular and additional front-veterans' supplements are both free from
                                  Taxation
      Financing                                      tax.
                             Contributions from
                                  benefits           Not applicable.
      LIS variable        V24S2 Education benefits
                          Student financial aid (veronalaiset opintorahat ), incl. secondary education study grant (keskiaste)
                          and higher education study grant (korkeakoulut)
       Contents           Study benefits for studying:
(national programmes)     - on unpaid leave (ammattikoulutusraha - aikuiskoulutustuki ),
                          - on partial unpaid leave (osittainen ammattikoulutusraha ),
                          - occupational exam (ammattitutkintostipendi - kertakorvaus ammattitutkinnosta ).
      Legislation
                          Student financial aid : all residents.
       Coverage           Study benefits for mature students: employees and self-employed persons covered by an
                          employment pension act (see V32S1 for details).

                                                     Eligibility begins with the first day of the first calendar month following the
                                                     17th birthday; one must have gained admission to a school (for post-
                                                     comprehensive school studies lasting at least eight weeks at an upper
                                                     secondary school, folk high school, vocational school, and institutions of
                                 Study grant
                                                     higher education; it is also available for studies abroad), be studying full
                                                     time, and be in need of financial assistance (when evaluating the need for
                                                     financial aid, the student's own income as well as under certain
                                                     circumstances his/her parents' or spouse´s income are considered).
 Qualifying conditions                               Unpaid leave study benefits : must have at least 10 years of work
                                                     experience, must be employed on unpaid leave for at least 2 months,
                                                     must be for at least 1 year with current employer; must follow an
                                                     occupational-oriented course.
                                                     Partial unpaid leave study benefits : must be 30 to 60 year-old; must be
                               Study benefits
                                                     employed on partial unpaid leave; must be for at least 1 year with current
                                                     employer; must follow an occupational-oriented course.
                                                     Occupational exam study benefits : must be 30 to 60 year-old; must have
                                                     been working in Finland for at least 5 years; must have finished a
                                                     vocational basic degree.
                                                     Duration: it depends on the type of studies (e.g. up to 55 months for
                                                     studies in an institution of higher education).
                                 Study grant         Amount: it depends on the type of school, age and marital status of the
                                                     student, and the mode of accommodation; the student´s overall financial
                                                     situation is also taken into account.
                                                      Unpaid leave study benefits : the duration depends on teh employment
                                                      history (1 month of employment gives right to 0.8 days of benefit) up a
       Benefits                                       maximum of 18-19 months; the amount consists of a monthly flat-rate
                                                      basic amount (EUR 440 in 2002) plus a wage-related addition (20% of
                                                      employee's average monthly income up to a ceiling).
                                Study benefits
                                                      Partial unpaid leave study benefits : it can be paid for a maximum of 12
                                                      months during a 24 month period; it amounts to a flat-rate (EUR 185 in
                                                      2002) with no additions.
                                                      Occupational exam study benefits : lump-sum flat-rate payment (EUR 236
                                                      in 2002).
                          Student financial aid cannot be paid in conjunction with family allowance, pension (other than a
Accumulation with other   survivors´ pension), rehabilitation allowance, unemployment benefits, training allowance, job
       income             alternation compensation, adult education allowance (government guarantee for student loan is
                          available), conscript´s allowance or student benefits from another country.
      Adjustment
                                                     Student financial aid: study grants are government-financed benefits,
                             Financing principle     student loans are granted by banks operating in Finland.
                                                     Study benefits:
                                                     Student financial aid: the study grant is subject to tax.
      Financing                                      Study benefits: the benefit received on unpaid leave is taxed at source
                                  Taxation
                                                     (20%); the benefits on partial unpaid leave and for the occupational exam
                                                     are tax-free.
                             Contributions from
                                  benefits           No contributions.
      LIS variable        V24SR Other social insurance benefits n.e.c.
       Contents
                          Allowance for repairing ones own house (asuntojen korjaustoiminnan avustus )
(national programmes)
      Legislation
       Coverage           All residents.
 Qualifying conditions    Paid to certain population groups (old, disabled).
                          The maximum amounts are set by government annually, and municipalities grant these allowances
       Benefits           on the basis of applications. Usually it is a certain percentage of accepted actual repair costs
                          (usually 40 %).
Accumulation with other
       income
      Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
      LIS variable        V25S1 General social assistance benefits
       Contents
                          Income support (toimeentulotuki )
(national programmes)
      Legislation         Act on Social Assistance of 30 December 1997 (in force as of 1 March 1998)
       Coverage           All persons residing in the country.
                          The assistance is given when a person (family) is temporarily, for a shorter or longer period without
                          sufficinet means to meet the necessary costs of living.
                          Everybody is bound to support him/herself first, and must try to get a job with a sufficient salary at all
 Qualifying conditions
                          times, as long as he/she is able to work.
                          There are no age conditions (in practice, however, soacial assistance is seldom given individually to
                          children under 18 years of age because parents are obliged to support their children).
                             Resources taken into All earnings and assets of the applicant and/or of the family (some
                                    account           exceptions).
                                                      Two categories set by law at national level according to the municipality
                                                      classification:
                                                      - single person and single parent: FIM 2,071 / 1,981;
                                 Basic amount         - couple - each spouse: FIM 1,760 / 1,684;
       Benefits                                       - child over 18 living with parents: FIM 1,512 / 1,446;
                                                      - child 10-17: FIM 1,450 / 1,387;
                                                      - child below 10: FIM 1,305 / 1,248.

                              Additional social    Other expenses for which additional social assistance can be granted
                                assistance         include 93% of reasonable housing costs, substantial medical expenses,
                                                   child day care costs and other costs which are considered to be essential.
Accumulation with other   Social Assistance is complementary to all other subsistence allowances and is provided as a last
       income             resort (safety net).
     Adjustment           Adjustment once a year in accordance with national pensions.

                                                     Funded by publlic funds (approx. 24% state and 76% municipalities; State
                             Financing principle     pays a subsidy to municipalities for their social and health services; this
                                                     subsidy is calculated according to the number of municipal residents, age
      Financing
                                                     structure, unemployment rate and mortality of the municipality).
                                 Taxation            Benefits are not subject to taxation.
                             Contributions from
                                  benefits           None.
      LIS variable        V25S2 Old-age and disability assistance benefits
       Contents
                          Housing allowances for National Pension Insurance pensioners (asumistuki )
(national programmes)
      Legislation
       Coverage
                          Housing allowance for National Isurance pensioners is available for residents of Finland aged 65 or
                          more, or between ages 16 and 64 if they receive a national old-age, disability or unemployment
                          pension, front-veteran's pension, or spouse's pension from KELA; recipients of early old age
 Qualifying conditions
                          pension can get pensioners' housing allowance from the beginning of the month following their 65th
                          birthday; spouses' pensions may consist solely of a housing allowance.
                          The allowance is paid only for rented or owner-occupied dwellings located in Finland.
                          The allowance covers 85% of reasonable housing costs exceeding a deductible. Besides the
                          housing costs, its amount depends on the claimants' family circumstances, the size of their family
                          and their income and assets.
       Benefits
                          The deductible consists of a basic component and an additional component. The additional
                          deductible means that 40% of the annual income exceeding a limit linked to the family
                          circumstances is deducted from the housing costs.
Accumulation with other
       income             No restrictions within the limits of the means-test.
     Adjustment
                             Financing principle     Financed by the State.
                                  Taxation           The allowance is free from tax.
      Financing
                             Contributions from
                                  benefits           No contributions.
      LIS variable        V25S3 Unemployment assistance benefits
       Contents
                          Labour Market Support (työmarkkinatuki )
(national programmes)
      Legislation         Law on Labour Market Support of 30 December 1993, as amended.
       Coverage           Unemployed persons
                          Unemployed persons who have received unemployment allowance for the maximum period allowed
                          (500 days) or who have not satisfied the employment condition required to qualify for unemployment
                          allowance, are eligible for labour market subsidy. If unemployment allowance has been paid for 500
                          days, labour market subsidy is granted, without a means test, for an additional 180 days. If an
                          unemployed person does not satisfy the employment condition, or if payment of the non-means-
                          tested labour market subsidy has ended, labour market subsidy is paid, subject to a means test, for
                          an unspecified period.
 Qualifying conditions    Recipients must also be between 17 and 64 years of age and resident in Finland (17-year-olds can
                          get labour market subsidy provided they have completed a vocational training, or if that is not the
                          case, provided they are presently in labour market or on-the-job training; 18-24-year-olds get labour
                          market subsidy provided that they have completed a vocational training, or, if that is not the case, 1)
                          are undergoing labour market training or practical training, 2) have not turned down an offer for a
                          job, labour market training or other training and have applied for vocational training, or 3) have not
                          dropped out of school); fit and available for work; unemployed and registered with an employment
                          office; looking for full-time employment8 consecutive weeks; persons entering the labour market for
                          Waiting period: 5 working days during (does not apply to persons on partial disability pension).
                          the first time have a waiting period of 5 months; this is not applied to persons who have completed
                          their vocational training.
                          Duration: no limit, until 65 years of age.
       Benefits           Amount: the full amount of FIM 121 per day is payable if the monthly income is below FIM 1,500 per
                          month for a single person and below FIM 5,040 for a family; the limit is increased by FIM 630 for
                          each child under 18; income above the loimit reduces the allowance by 75% for single persons and
                          by 50% for a family; a young person living with his parents gets 60% of teh full support (however a
                          full suuport during labour market measures).
Accumulation with other
       income             No restrictions within the limits of the means-test.
     Adjustment           In line with price changes.
                               Financing principle     Financed by the state.
                                    Taxation           Benefits are liable to taxation.
      Financing
                               Contributions from
                                    benefits           No contributions.
      LIS variable        V25SR Social assistance cash benefits n.e.c.
                          Conscript's Allowance (sotilasavustus ), incl.:
       Contents           - basic allowance
(national programmes)     - housing allowance
                          - special allowance
      Legislation
       Coverage           Men on conscript or alternative service and women on voluntary armed forces.
                          Payable to the dependants of men performing their conscript or alternative service and to the
                          dependants of women performing voluntary armed service.
                          It can be paid for the following family members: married spouse; unmarried partner with whom the
                          conscript has a child under 18; a natural or adopted child of the conscript; a child of the conscript's
 Qualifying conditions
                          married spouse; or a child placed in permanent custody with the conscript.
                          Entitlement to the allowances depends on the net income of the conscript and the eligible family
                          members, except in the case of the interest subsidy, where only the conscript's own income is
                          considered.
                                                       The basic allowance is intended to cover the costs of food and personal
                                                       hygiene and other daily expenses. It is equal to the full national pension
                                                       additional amount payable to a single pensioner. Recipients living outside
                                                       Finland get the basic allowance at the rate it would be paid in a
                                Basic allowance        municipality belonging to cost-of-living class II. The amount of the basic
                                                       allowance also depends on the number of eligible family members: the
                                                       first recipient gets the full allowance, the second 50% of the full
                                                       allowance, and the third and each following recipient 30% of the full
       Benefits                                        allowance.
                                                       The housing allowance covers part of the housing costs of the conscript
                                                       or his/her family member. The costs taken into account include rent,
                              Housing allowance        monthly maintenance charge, water, annual interest on housing loans
                                                       and repayments of principal, electricity, gas and, in the case of a
                                                       detached one-family house, the costs of regular upkeep.
                                                       The special allowance can be awarded to cover reasonable and
                               Special allowance       necessary health care costs, child care costs - for example a pram - and
                                                       student loan interest payments.
Accumulation with other
       income             No restrictions within the limits of the means-test.

      Adjustment
                             Financing principle     Financed by the State.
                                  Taxation           The allowance is free from tax.
      Financing
                             Contributions from
                                  benefits           No contributions.
      LIS variable        V26S2 Near-cash housing benefits
       Contents
                          General housing allowance (asumistuki )
(national programmes)
      Legislation

       Coverage           All Finnish households (it is paid collectively to the entire household and not to individual residents).

                          General housing allowance can be granted to households living in a rented, right-of-occupancy or
                          owner-occupied dwelling, or just a part of a dwelling, which is located in Finland. Even those
                          households that have sublet part of their dwelling can themselves get general housing allowance, as
                          can the sublessee.
                          Means-test: households can qualify for the general housing allowance if their housing expenses are
                          unreasonably high compared with the household's combined income (calculated as their regular
 Qualifying conditions    monthly income before taxes), which itself may not exceed a specified limit. If the household income
                          varies from month to month, it is averaged over a longer period. Along with earned income, all other
                          types of income, including child home care allowance, unemployment allowance and other daily
                          allowances, are taken into account at their full value. If the household's combined taxable property
                          exceeds a specified amount linked to the number of persons in the household, 15% of the excess is
                          added to the household's gross income. The household's liabilities are deducted from its property.
                          The dwelling used by the household does not count as property. In connection with the initial
                          application or eligibility review, the household's circumstances are assessed for one year in
                          The allowance covers 80% of reasonable housing costs exceeding a deductible, the rates of which
       Benefits           the Government sets annually (for examples, see the supplement). The allowance is not paid if it is
                          less than FIM 16.81 per month.
Accumulation with other
       income             Pensioners' housing allowance and the general housing allowance cannot be paid at the same time.
     Adjustment           Not applicable.
                             Financing principle   Financed by the State.
                                  Taxation         Tax free.
      Financing
                             Contributions from
                                   benefits        No contributions.
      LIS variable        V26S5 Near-cash education benefits
       Contents
                          Student financial aid: housing supplement (opintorahan asumislisä - ml. korotettu osa ).
(national programmes)
      Legislation
       Coverage
                          The housing supplement can be paid to students living in a rented, right-of-tenancy or right-of-
                          purchase dwelling. Students are not eiligible if living with their parents, if the dwelling is owned by
                          the student of his/her spouse, or if the student's child (or a child of his/her spouse or cohabiting
 Qualifying conditions
                          partner) lives with him/her. However, when living with a child in rented accommodation, the student
                          can get the supplement if he/she, due to the studies, has to live away from the rest of the family or if
                          he/she studies abroad.
                          It covers 80% of the rent and can vary between a given range; it is not available if the rent is less
                          than a certain amount, and is not granted for the part of the rent that exceeds a maximum limit. If
       Benefits
                          living in a dwelling owned by or rented from the student's parent or if the dwelling is located in the
                          same building as the parent´s principal dwelling, the maximum supplement is much lower.
Accumulation with other
       income
     Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
       LIS variable       V28 Value of non-cash housing benefits
        Contents          Imputed income from apartment with free or low rent (ilmainen, syytinkinä saatu tai muu käypää
 (national programmes)    vuokraa halvempi asunto )
       Legislation        Correction variable
        Coverage
  Qualifying conditions
         Benefits
Accumulation with other
         income
       Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
     LIS variable         V29 Value of non-cash medical benefits
                          Examination and treatment fees (lääkärinpalkkiot )
                          Dentist fees (hammaslääkäripalkkiot )
                          Doctor fees (tutkimus ja hoito )
       Contents
                          Prescription drugs rebate for the insured (lääkekorvaukset vakuutetuille)
(national programmes)
                          Transportation costs for the sick (matkakorvaukset. sairaankuljetukset )
                          Overnight stay allowance (yöpymiskorvaukset )
                          Travel expense for rehabilitation (kuntoutuksen matkakustannusten korvaus )
      Legislation         National Health Insurance
       Coverage           All residents.
                                                     Part of the cost of examinations and treatments ordered by a doctor is
                                                     reimbursed under NHI. In addition to procedures prescribed by a
                                                     physician in private practice, this applies to treatment given by a
                                                     registered nurse, public health nurse or physiotherapist and
                                                     examinations performed by a psychologist or laboratory nurse. Out-
                                                     patient dialysis is also reimbursable.
                                                     In order to be reimbursable, the examination or treatment must as a
                               Examination and
                                                     general rule have been performed no later than a year after the date on
                                treatment fees
                                                     which the doctor ordered it.
                                                     When a municipal health centre refers a patient for an examination
                                                     purchased from an outside provider, NHI refunds are not available. The
                                                     cost of the examination must be borne by the municipality and/or the
                                                     patient; if the cost of the examination or treatment exceeds the co-
                                                     payment, 75% of the exceeding cost (according to a fixed scale of
                                                     charges) is reimbursed per order.
                                                     Persons born in 1946 or thereafter are eligible for refunds for the cost of
                                                     dental examinations and treatments performed by a dentist in private
                                                     practice according to accepted principles of systematic dental care, but
 Qualifying conditions
                                  Dentist fees       not for ortho- or prosthodontic procedures.
                                                     In addition, reimbursements are available for laboratory and radiologic
                                                     examinations linked to dental care as well as for the cost of travel and
                                                     medicines.
                                                     Part of the fees charged by doctors in private practice is reimbursed by
                                                     the National Health Insurance. The cost of acquiring a medical
                                                     certificate from a doctor in private practice to satisfy an NHI requirement
                                  Doctor fees
                                                     is also reimbursable.
                                                     If a pharmacy charges a doctor's fee (e.g., when a doctor phones in a
                                                     prescription), the refund is credited at the pharmacy.
                              Prescription drugs     Part of the cost of medicines prescribed by doctors is reimbursed by the
                            rebate for the insured National Health Insurance.
                          Transportation costs for Transportation expenses in excess of FIM 45 are fully reimbursed by the
                                    the sick         National Health Insurance.
                                Overnight stay       Can be paid if a patient has had to stay overnight due to medical
                                   allowance         examination or treatment or travbelling conditions.
                              Travel expense for     Travelling expenses compensated to those who are in rehabilitation,
                                 rehabilitation      same rules as with Transportation costs for the sick.
                               Examination and       75% of cost of prescribed examinations and prescribed treatment over
                                treatment fees       FIM 70 deductible.
                                                     60% of the dentist's fee and the cost of examinations and preventive
                                  Dentist fees       care is reimbursed, according to a fixed scale of charges. This
                                                     reimbursement is available once a year.
                                                     60% of doctors' fees is reimbursed, according to a fixed scale of
                                  Doctor fees        charges (the part of the fee that exceeds the fixed charge is not
                                                     reimbursable).
       Benefits                                      50% of cost of medicines over 50 marks (75%-100% reimbursement for
                              Prescription drugs
                                                     drugs used to treat grave and prolonged illness over FIM 25 deductible,
                            rebate for the insured
                                                     full refund if annual cost of prescription drugs exceed FIM 3,282).
                          Transportation costs for 100% transportation expenses in excess of FIM 45 (full refund if annual
                                    the sick         deductible expenses exceed FIM 900).
                                Overnight stay
                                   allowance         FIM 120 per night.
                              Travel expense for     100% transportation expenses in excess of FIM 45 (full refund if annual
                                 rehabilitation      deductible expenses exceed FIM 900).
Accumulation with other
       income
     Adjustment
                             Financing principle    Tax financed.
                                  Taxation          Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits          No contributions.
      LIS variable        V33S1b Voluntary occupational pensions
       Contents
                          Supplementary employment-based pensions (both private and public sectors)
(national programmes)
      Legislation
                          Voluntary pension schemes set up by the employers (both private and public) for their employees
       Coverage           (so-called second pillar pensions, arranged voluntarily or according to labour market negotiayitions
                          by the employer).
 Qualifying conditions
        Benefits
Accumulation with other
        income

      Adjustment

                             Financing principle    The employer is responsible for at least 50% of contributions.
                                  Taxation          Liable to taxation.
      Financing
                             Contributions from
                                  benefits
      LIS variable        V32SR Private occupational and other pensions n.e.c.
                          Unclassified tax-free private pensions (erittelemättömät verovapaat eläkkeet yms. )
       Contents
                          Taxable pensions from abroad (veronalaiset eläkkeet ulkomailta )
(national programmes)
                          Tax-free pensions from abroad (ulkomaan eläketulot, jotka eivät sisälly verotustietoihin )
      Legislation
       Coverage
 Qualifying conditions
        Benefits
Accumulation with other
        income
      Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
LIS variable

1. KELA (The social Insurance Institution of Finalnd) web-page
(http://193.209.217.5/in/internet/english.nsf)

2. "Social Protection in the Member States of the EU Member States and the European Economic Area -
Situation on 1 Janualy 2000 - MISSOC", by the European Commission, Employment and Social Affaris.
3. Social Security Programs Throughout the World, 1999.
4. The Koulutus- ya erorahasto web.site (http://www.koulutus-erorahasto.fi/index2.htm)
5. Information from Statistics Finland.

								
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