Employment Fund

What Employment Fund does

Employment Fund (Työllisyysrahasto) is a Finnish statutory institution that began operations on 1 January 2019 through the merger of the Unemployment Insurance Fund and the Education Fund. It is the sole entity authorized under the Act on the Financing of Unemployment Benefits to collect unemployment insurance contributions from every employer and every employee aged 18-64 in Finland, at a total statutory rate of approximately 1.8% of payroll billed quarterly. Collected contributions finance earnings-related unemployment security (approximately 95% paid out to unemployment funds for benefits), pension accrual during unemployment allowance periods, transition security for employees aged 55+, pay security for insolvent-employer wage claims, and from May 2026 the new general allowance replacing the basic unemployment allowance and labour market subsidy. The Fund also administers training compensation, employer liability components, transition security contributions, and termination dispute reconciliation services.

The platform is built on integration with Finland's national Incomes Register (KATRE), which enables 99% automated invoicing of contributions from real-time salary data, with authentication handled through the Suomi.fi national identification system. Supporting products include online calculators for contributions, liability components, and transition security contributions, all delivered through a self-service portal. The Fund operates from a single headquarters in Helsinki with 124 employees as of end-2025, and is governed by a Supervisory Board appointed by the Finnish Government with equal employer/employee representation, supervised by the Finnish Financial Supervisory Authority within the Ministry of Social Affairs and Health's administrative branch. It holds an AA+/A-1+ S&P credit rating aligned with Finland, has issued a EUR 600M senior unsecured bond maturing June 2027, and maintains an EUR 800M revolving credit facility signed May 2026 with four Nordic and European banks.

Name

Employment Fund

Legal name

Employment Fund (Työllisyysrahasto)

Website

https://employmentfund.fi

Company type

Private

Founded year

2019

Operating status

Operating

Short description

Employment Fund (Työllisyysrahasto) is a Finnish statutory institution that collects mandatory unemployment insurance contributions from all employers and employees aged 18-64, financing earnings-related unemployment security, pension accrual, transition security for older workers, pay security, and general allowance benefits.

Ownership category

akta.pro rank

Product category

Social Insurance Administration

NAICS

Pension Funds (525110), Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs) (92313)

SIC

Services-Social Services (8300)

akta.pro primary industry

Unemployment Insurance & Employment Support Benefits (BPAIAKAB)

akta.pro secondary industries

Work Injury & Workers’ Compensation / Occupational Injury Benefits (BPAIAKAJ), Benefits Deductions & Payroll Integration Administration (BPAAAHAF)

Keywords

• Unemployment insurance
• Statutory contributions
• Employer contribution management
• Labor market benefits
• Social security administration

Headquarters

HQ city

Helsinki

HQ country

Finland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Marketing or Sales

Revenue model

1. Unemployment Insurance Contributions: Employment Fund collects unemployment insurance contributions jointly from employers and employees. Employers pay both their share and employees' share of contributions four times per year. The current total contribution rate is approximately 1.8%. These contributions fund earnings-related unemployment security, pension accrual during unemployment allowance periods, transition security for employees aged 55+, pay security, and adult education benefits.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

Employment Fund collects unemployment insurance contributions from Finnish employers and employees, manages the statutory reporting and payment process through an automated Online Transaction Service, and administers training compensation benefits to employers for employee training. It operates as a statutory institution under the Finnish Ministry of Social Affairs and Health, holding a legal monopoly on these services for approximately 300,000 Finnish companies.

Product overview

Employment Fund operates as a Finnish social security institution offering a unified platform of services centered on unemployment insurance contributions and related benefits. The core product is the Online Service for Unemployment Insurance Contributions, which integrates with the national Incomes Register for automated invoicing (99% automation rate). Supporting modules include calculators for insurance contributions, liability components, and transition security contributions. The fund also manages training compensation, liability components, transition security contributions, and disputes over termination. Adult education benefits (a sub-brand) were recently discontinued. All services are connected to government systems including the Incomes Register, Suomi.fi for authentication, and Kela for general allowance financing.

Differentiator

Problem solved

Functional benefit

Products and services

• Online Service for Unemployment Insurance Contributions Digital self-service platform where Finnish employers register, calculate, report salaries, and pay statutory unemployment insurance contributions for themselves and their employees. Includes contribution calculators for unemployment insurance, liability component, and transition security contribution, and integrates with the Incomes Register (KATRE), Suomi.fi, and Palkka.fi.
• Training Compensation (Koulutuskorvaus) Statutory benefit paid to Finnish employers to compensate costs of training provided to employees during layoff periods, intended to maintain employee competence during temporary unemployment.
• Disputes over Termination of Employment and Reconciliation Administrative service that processes disputes and reconciliation matters concerning termination of employment under the Finnish Unemployment Security Act, providing adjudication on related cases.
• Adult Education Benefits (Aikuiskoulutusetuus) Previously administered adult education benefits program providing financial support for employee education; discontinued as an active offering, with archived information maintained for reference.

Quantifiable outcome

• 99% invoicing automation rate for unemployment insurance contributions
• +1 more outcomes

Named customers6 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability1 record

Feature3 records

Partnerships

Six partnerships are on record, tiered core and minor.

• International Social Security Association (ISSA)coreStrategic or Co-development PartnerEmployment Fund is a member of ISSA, participating in international social security cooperation and knowledge sharing with social security institutions worldwide.
• European Social Insurance Platform (ESIP)coreStrategic or Co-development PartnerEmployment Fund is a member of ESIP, engaging in European-level social insurance coordination and best practice exchange.
• Nordiskt Socialförsäkringsmöten (NSF)coreStrategic or Co-development PartnerEmployment Fund participates in Nordic social insurance meetings for cooperation with other Nordic countries on social security matters.
• European Association of Paritarian InstitutionsminorStrategic or Co-development PartnerEmployment Fund holds observer member status in this European association of paritarian (jointly managed by employers and employees) institutions.
• Finnish Tax AdministrationcoreTechnology or IntegrationCo-provider of Palkka.fi service for small employers to calculate wages and submit required reports to the Incomes Register.
• Pension Insurance CompaniescoreTechnology or IntegrationCo-providers of Palkka.fi service alongside Finnish Tax Administration and Employment Fund for employer wage calculation and reporting.

Scale indicators8 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Kela (Social Insurance Institution of Finland): Kela is Finland's main statutory social security administrator, handling general social benefits, healthcare reimbursements, and family benefits. It receives annual transfers from Employment Fund to finance the new general allowance, making it a directly comparable institutional counterpart in the Finnish welfare system.
• Finnish Centre for Pensions (Työeläkevakuuttajat): The Finnish Centre for Pensions is the statutory coordination body for Finland's earnings-related pension scheme and is jointly managed by labour market parties, mirroring Employment Fund's governance structure. It is directly comparable as another paritarian Finnish social security institution with statutory mandate and buffer management.

Regional players

• Danish Agency for Labour Market and Recruitment (STAR): STAR oversees Denmark's labour market policies including unemployment insurance funds (a-kasser) and benefit administration. It shares the Danish model of multiple unemployment funds supervised by a central authority, providing a structural comparison point for Employment Fund's role as a sole collector.
• German Federal Employment Agency (Bundesagentur für Arbeit): The Bundesagentur für Arbeit administers German unemployment insurance, collecting contributions and paying benefits through a similar statutory framework. It is the largest European comparator for Employment Fund in terms of mandate, contribution collection, and benefit financing scope.
• Norwegian Labour and Welfare Administration (NAV): NAV administers unemployment benefits, pensions, sickness benefits, and social assistance in Norway under a similar statutory framework. It is a Nordic counterpart with comparable employer/employee contribution financing and digital automation priorities.
• Swedish Social Insurance Agency (Försäkringskassan): Försäkringskassan is Sweden's government agency administering social insurance including parental, sickness, and unemployment benefits. It is structurally comparable as a Nordic statutory social security administrator with a similar benefit-financing mandate, though it operates under Swedish legislation.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Customer concentration

• Xx.com/Tyollisyysrhsto
• LinkedInlinkedin.com/company/tyollisyysrahasto

Compliance8 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Employment Fund