Annual Report

1 Jan–31 Dec 2025

2025

2Annual Report 2025 Contents

Contents

3 ANNUAL REPORT 2025

3 The year of Employment Fund

in brief

4 Financial development

5 Managing Director’s review

8 Strategy, mission, vision and

values

11 Keyfigures2025

12 REPORT OF THE BOARD OF

DIRECTORS

13 Duties of Employment Fund

16 Cooperation with stakeholders

18 Customer service

20 Unemployment insurance

contributions

28 Adulteducationbenefits

33 Finance

36 Investment activities

39 Sustainability

54 Risk management

56 Personnel

60 Eventsafterthefinancialperiod

61 Corporate governance

74 Remuneration report

80 FINANCIAL STATEMENTS

81 Financial statements (IFRS) 2025

81 Statement of changes in net

position

84 Notestothefinancialstatements

125 Auditor’s Report

130 Independent Auditor’s Report on

the ESEF Financial Statements of

Employment Fund

3Annual Report 2025

The year of Employment Fund in brief

Due to the measures set out in the Government Programme, the

financingcontributionspaidbytheFunddecreasedeventhough

the unemployment rate was higher than in 2024.

The customer satisfaction

score (CSAT) stood at 89% (88%)

for the year as a whole.

We provided EUR

2,637 million

forthefinancingof

unemployment security,

pension security and

adulteducationbenefits.

The shutdown of the adult

educationbenefitscheme

has continued on schedule

and we will pay the last

benefitsinearly2026.

The year of Employment Fund in brief

4Annual Report 2025 Financial development

Financial development

As expected, the amount of unemploy-

ment insurance contributions collected by

Employment Fund during 2025 remained

well below the totals collected during the

comparison period. This was because the

unemployment insurance contributions for

2025 were lowered as proposed by Employ-

ment Fund.

Thefinancingcontributionspaidbythe

Fundtobenefitrecipientswerealsosub-

stantially lower than in the previous year

even though unemployment was higher

than in the comparison period. The impacts

of the measures set out in the Government

Programme began to show during 2025.

As expected, the result for the year (change

innetposition)remainedindeficit,which

was due to lower unemployment insurance

contributions and high unemployment.

However,thedeficitwassmallerthaninthe

comparison period.

ThefiguresareinEURmillion.

Financial development 1 Jan–31 Dec 2025 1 Jan–31 Dec 2024

Unemployment insurance contributions and other income 1,907 2,347

Financing contributions paid and administrative expenses -2,668 -3,163

Netfinancialincome 32 67

Change in net position -729 -749

Investment assets, cash and cash equivalents 857 1,513

Receivables,accrualsandfixedassets 354 447

Short-term and long-term loans 599 599

Unemployment insurance contribution and other liabilities 69 89

Net position 543 1,272

Unemployment insurance contribution (total)* 1.21% 1.61%

Change in total payroll %** 2.1% 2.2%

Unemployment rate (average) 9.7% 8.4%

Return on investments 2.9% 4.2%

*Employer’s average unemployment insurance contribution % and employee’s unemployment insurance con-

tribution %, total.

**Change in cumulative payroll during the reporting period compared to corresponding payroll in the same

period in 2024. Calculated on the basis of the wages and salaries on which the unemployment insurance

contribution is paid.

5Annual Report 2025 Managing Director’s review

The year 2025 was characterised by geo-

political uncertainty. At the same time, the

Finnish economy grew more slowly than

expected and unemployment increased.

ThiswasalsoreflectedinEmployment

Fund’sfinances,whichmeantthattheFund

postedadeficit.Weareresponsibleforfi-

nancing and implementing unemployment

security and other areas of social security

and were able to manage this task success-

fully in 2025. We carried out development

projects in accordance with our strategy by,

for example, updating IT platform servic-

es and capabilities. Customer satisfaction

remained high and satisfaction among our

personnel improved.

THERE IS STILL UNCERTAINTY IN

OUR OPERATING ENVIRONMENT

Geopolitics and the global economy were

characterised by a great deal of uncertainty

in 2025 such as the continuation of the war

in Ukraine and instability in the Middle

East. Tariff issues and the prospect of trade

wars also caused uncertainty in the Finn-

ish economy.

Finland’s economic operating environ-

ment,especiallyinthefieldofunemploy-

ment, continued to deteriorate in 2025. At

the same time, the European Central Bank

lowereditskeyinterestratesandinflation

remained very low in Finland. The out-

lookforbusinessconfidenceindicators

improved during the year. Moreover, the

economic forecast is generally slightly

improvingfor2026,althoughitisdifficultto

predict future developments.

HIGH UNEMPLOYMENT AND LOWER

UNEMPLOYMENT INSURANCE

CONTRIBUTIONS WERE REFLECTED

IN THE FUND’S RESULT

The unemployment insurance contribu-

tions, which are now at historically low

levels, and the high unemployment rate had

a negative impact on Employment Fund’s

finances.TheFundpostedasubstantial

deficitfor2025.Thespendingcutssetout

in the Government Programme reduced

unemployment security expenditure. As

aresult,EmploymentFund’sfinancing

expenditure was lower than in previous

Managing Director’s review

6Annual Report 2025 Managing Director’s review

years even though the unemployment rate

was higher. The liquidity of Employment

Fund remained good throughout the year.

As proposed by Employment Fund, unem-

ployment insurance contributions will be

increased by 0.6 percentage points to 1.8 per

cent for 2026. The increase will consolidate

theFund’sfinancesandthefinancingof

benefitexpenditure.Despitetheincrease,

unemployment insurance contributions

will remain substantially below long-term

average.

IMPACTS OF LEGISLATIVE

PROJECTS ON THE FUND

A large number of projects to amend the

legislation pertaining to Employment Fund

have been under way during the year. They

include the reform of the Act on the Financ-

ingofUnemploymentBenefits,general

socialsecuritybenefit,combinationinsur-

ance, shortening of the lay-off notice period

and abolition of the training compensation

scheme. The universal earnings-related

benefitmodelwasalsoexaminedduring

the year. However, the Finnish Government

decided that, for the time being, the review

will not lead to any further preparations.

We have taken part in the preparatory

work coordinated by the Ministry of Social

Affairs and Health, commented on draft

legislative proposals and memoranda and

submitted statements.

Finnish Parliament approved the abolition

of the training compensation scheme in

December 2025. The training compensation

has involved a minor implementation task

totalling about EUR 10 million and it has

beenfullyfinancedbythegovernment.Ab-

olition of the compensation will not affect

the balance between Employment Fund’s

income and expenses and it will not lead to

personnel changes. Training compensation

will still be paid for training provided in

2025 but compensations will no longer be

paid for training taking place in 2026.

The legislative proposal for General social

securitybenefitwasapprovedbyParlia-

ment in December 2025. The general so-

cialsecuritybenefitwillcombinelabour

market subsidy and basic unemployment

allowanceintoasinglebenefit.Mostof

thefinancingforthelatterbenefithas

come from Employment Fund. In quanti-

tative terms, funding responsibilities will

remain unchanged under the new system.

The change will not have any impact on

the earnings-related security channelled

throughunemploymentfundsoritsfinanc-

ing (which is primarily the responsibility of

Employment Fund).

Combination insurance and shortening of

the lay-off notice period are under prepara-

tion. If both reforms are implemented, they

could increase the expenditure under the

Fund’s responsibility from EUR 10 million

to EUR 50 million. Combination insurance

would be a new funding responsibility for

Employment Fund. Overhaul of the Act on

theFinancingofUnemploymentBenefitsis

also under preparation.

In its budget session in autumn 2025, the

Finnish Government decided to launch a

review of mechanisms reducing cyclical

fluctuationsintheFinnisheconomyand

of such matters as the role of Employment

Fund in cyclical policy. To carry out the

task, a working group under the Ministry

of Social Affairs and Health was appointed,

and Employment Fund is one of the actors

represented in its secretariat. The term of

the working group will end in April 2026.

7Annual Report 2025 Managing Director’s review

USING IT CAPABILITIES AND

ARTIFICIAL INTELLIGENCE TO

MEET STRATEGIC GOALS

Last year, we continued to implement Em-

ployment Fund’s strategy by closely moni-

toring the indicators created in early 2025

to measure the progress of the strategy.

Producing customer-oriented services for

the digital age in a reliable and high-quality

manner, and increasing productivity and

efficiencyareourstrategicgoals.

During the year, we successfully trans-

ferred our IT services to a new supplier and

built new platform capabilities. The reform

will help us in digital development as we

buildmorecustomer-orientedandefficient

services. An example of this is the mod-

ernisation of our unemployment insurance

contribution services.

The shutdown of the adult education al-

lowance scheme has continued in accord-

ancewiththetimetablespecifiedinthe

law. The abolition transition period ended

on 31 December 2025. The amount of the

allowances paid decreased substantially

compared to 2024. We will make the last

allowance payments in early 2026, after

which the material will be archived and the

information systems will be gradually shut

down.Thechangehasalsobeenreflected

in our organisation: since the end of 2023,

the number of the Fund’s employees has

decreased by 29% and totalled 124 at the

end of 2025. Customer satisfaction has

remained at excellent levels throughout the

shutdown process.

During 2025, we trained our personnel

extensivelyontheresponsibleuseofartifi-

cial intelligence. During the year, the Fund’s

personnel started testing a range of differ-

ent AI tools, the aim of which is to support

their work and make our operations more

efficient.Wewillmakemorein-depthuse

ofartificialintelligenceinagoal-oriented

manner as part of our work tasks during

2026.

LOOKING AT THE FUTURE

The year 2025 was marked by many chang-

es and phases. At the end of the year, Janne

Metsämäki, who has served as the Manag-

ing Director of the Fund and its predeces-

sors since 2015, retired on a well-earned

pension. Employment Fund’s Board of

Directors appointed Karo Nukarinen, the

Fund’sChiefFinancialOfficer,asthenew

Managing Director. He started in his new

position on 1 January 2026.

We have achieved a great deal during the

year. Competent and capable personnel are

the key factor behind the success. Commit-

ted and high-quality work has been re-

flectedinsuchmattersassmooth-running

operations and excellent customer service.

Working together, we will set our sights for

the future and continue to provide security

for changes in working life in 2026.

I would like to extend warm thanks to

all Employment Fund employees and our

stakeholders for the year 2025.

Karo Nukarinen

Managing Director

8Annual Report 2025

Strategy, mission, vision and values

Employment Fund’s strategy comprises

our mission, vision, strategic goals, values

and drivers of change. The Fund’s Board of

Directors assesses the needs to update the

strategy each year. The assessment carried

out in 2025 did not lead to any changes in

the strategy.

Our mission is to provide security for

changes in working life. Our vision is to be

a respected and effective executor of so-

cial security. Our values are: our customers

comefirst;werenew,weevolve,weact;we

are a united team.

Providing security

for changes in

working life

MISSION

Providing security for

changes in working life

VISION

Respected and effective

executor of social security

VALUES

Ourcustomerscomefirst

We renew, we evolve, we act

We are a united team

9Annual Report 2025 Strategy, mission, vision and values

Our strategic goals are as follows:

• We produce customer-oriented digital

age services reliably and with high

quality.

• Weincreaseproductivityandefficiency.

Our strategic goals also include excellent

customer and personnel experience.

Identifiedkeyforcesofchangeimpacting

Employment Fund:

• Security environment

• Finland’spublicfinances

• Changes in social security

• Division of tasks in public

administration

• Legislative changes concerning the

administrative tasks of Employment

Fund

• Employment development

• Demographic trends and dependency

ratio

• Financing of unemployment security

• Reforms in labour legislation

• Role of social partners

• Digitalisationandartificialintelligence

We assessed the forces of change during

2025 and concluded that they remain ap-

propriate and essential.

In 2025, our focus was on the implementa-

tion of the Fund’s strategy. At the beginning

of the year, we built a multifaceted set of

indicators, which we have used to monitor

progress in implementing key areas of the

strategy.

During the year, our focus was on two major

areas of the strategy: Transfer of IT services

to a new supplier and shutdown of the adult

education allowance scheme in accordance

with the Government Programme.

10Annual Report 2025 Strategy, mission, vision and values

Employment Fund’s strategy

Values

Vision

Respected and

effective

executor of

social security

Our customers

come ﬁrst

We renew

We evolve

We act

We are a

united team

Strategic goals

Mission

Providing security for

changes in working life

Forces of change

The role of social partners

Security environment

Finland’s public ﬁnances

Changes in social security

Legislative changes concerning the administrative tasks of Employment Fund

Employment development

Demographic trends and dependency ratio

Financing of unemployment security

Reforms in labour legislation

We increase productivity

and efﬁciency

We produce customer-oriented digital age

services reliably and with high quality

Excellent customer experience

Excellent personnel experience

Division of tasks in public sector

Digitalisation and artiﬁcial intellience

11Annual Report 2025

Key figures 2025

Keyfigures

ThefiguresareinEURmillion.

Income 2021 2022 2023 2024 2025 Change EUR Change %

Unemployment insurance contribution income collected from employers 1,159 1,326 1,412 766 571 -195 -25%

Unemployment insurance contribution income collected from employees 1,241 1,424 1,490 806 607 -198 -25%

Government and municipal contributions 911 717 704 752 700 -51 -7%

Other employer contributions* 23 23 21 24 29 5 19%

Total income 3,335 3,490 3,627 2,347 1,907 -440 -19%

Expenses 2021 2022 2023 2024 2025 Change EUR Change %

Unemployment funds, Employment Fund’s contributions -1,463 -1,039 -1,098 -1,238 -1,063 -175 -14%

Unemployment funds, government contributions -909 -714 -700 -747 -699 -48 -6%

Finnish Centre for Pensions -902 -596 -600 -722 -659 -64 -9%

Social Insurance Institution of Finland -239 -243 -263 -168 -94 -73 -44%

Adulteducationbenefits -186 -189 -201 -212 -77 -135 -64%

Employment areas 0 0 0 0 -5 5

Ministry of Economic Affairs and Employment -14 -20 -30 -32 -30 -2 -6%

State Pension Fund -11 -8 -8 -10 -10 0 0%

Administrative expenses -26 -23 -34 -34 -31 -3 -8%

Total expenses -3,750 -2,832 -2,934 -3,163 -2,668 -495 -16%

Netfinancialincome 3 -34 69 67 32 -35 -52%

Change in net position -412 625 763 -749 -729 19

Net position 2021 2022 2023 2024 2025 Change EUR Change %

Investment assets and cash and cash equivalents 1,339 1,885 1,869 1,513 857 -656 -43%

Receivables,accrualsandfixedassets 679 818 859 447 354 -93 -21%

Short-term and long-term loans 1,299 1,299 599 599 599 0 0%

Unemployment insurance contribution and other liabilities 86 146 109 89 69 -20 -22%

Net position 633 1,258 2,021 1,272 543 -729 -57%

*Other employer contributions contain the employer’s liability component and transition security contributions and the deductions under the Employment Contracts Act.

Report of the Board

of Directors

13Report of the Board of Directors 2025

Duties of Employment Fund

Employment Fund’s main duties

aretofinanceunemployment

security, determine and collect

unemployment insurance

contributions, and grant adult

educationbenefits.

We collect the unemployment insurance

contributions paid by all employers and em-

ployees. We determine the unemployment

insurance contributions on the basis of the

information reported by the employers to

the Incomes Register. Parliament approves

the contribution rates by passing a bill on

the contributions each year.

The Fund maintains a business cycle buffer

arising from the difference between its

assets and liabilities, and its purpose is to

ensure our liquidity and to keep changes in

contributions at moderate levels. With the

buffer, the Fund can ease upward pressure

on contributions when unemployment se-

curity expenditure increases.

In 2025, we collected a total of EUR 1,178

(1,571) million in unemployment insur-

ance contributions. Employers accounted

for EUR 571 (766) million and employees

for EUR 607 (806) million of this total. The

liability components and transition secu-

rity contributions paid by employers, and

thedeductionsspecifiedintheEmployment

Contracts Act totalled EUR 29 (24) million.

Payments by central government totalled

EUR 605 million and by municipalities EUR

95 million. In 2025, we collected a total of

EUR 1,907 (2,347) million in contributions.

ThebenefitsfinancedbyEmploymentFund

include the unemployment allowances paid

by unemployment funds and Kela, pension

contributions related to earnings-related

daily allowances and the adult education

allowance paid by the Fund. We also work

as experts in the reconciliation of the

compensation paid in disputes concern-

ing termination of employment and the

unemployment allowance received by the

employee.

In2025,wefinancedunemploymentsecu-

rity paid by unemployment funds totalling

EUR 1,762 (1,985) million, including central

government and municipal contributions.

This was 11.2% less than in 2024, and the

decrease was mainly due to the impacts

of the measures set out in the Government

Programme.

Employment Fund accounted for EUR 1,063

(1,238) million of the funding. The decline

ofthesharefinancedwithunemployment

14Report of the Board of Directors 2025 Duties of Employment Fund

insurance contributions was partly due to

the decrease in the lay-off daily allowances

for which the Fund is responsible by 22.1%

or EUR 81 million. Employment Fund, cen-

tral government and municipalities cover

about94.5%ofthefinancingofunemploy-

mentfunds.Theremainderofthefinancing

comes from the membership contributions.

We paid a total of EUR 94 (167) million to

Kela as the Fund’s share of basic income se-

curity for employees who are not members

of unemployment funds and paid a total of

EUR 30 (27) million as the Fund’s share of

pay security to the Ministry of Economic

Affairs and Employment.

In 2025, we contributed to the employment

pension costs by paying to the Finnish Cen-

tre for Pensions and the State Pension Fund

a total of EUR 668 (732) million in employ-

ment pensions accruing during the earn-

ings-related daily allowance period and the

payment period of job alternation leave and

adult education allowance.

Wefinancethetransitionsecuritypackage

intended for dismissed employees aged

55 and over, which consists of transition

security training and transition security

allowance. We paid a total of EUR 5 million

in transition security training costs to the

employment areas and a total of EUR 14 (12)

million in transition security allowances to

unemployment funds and Kela.

We paid a total of EUR 77 (203) million in

adult education allowances to 15,144 (31,796)

persons. Because of the abolition of the

adulteducationbenefits,in2025allowances

could only be granted to wage and salary

earners and full-time entrepreneurs whose

studiesandeligibilityforthebenefitshad

started on 31 July 2024 at the latest. The ab-

olition transition period ended on 31 Decem-

ber 2025.

Wegrantedscholarshipsforqualifiedem-

ployees to 148 (23,009) persons in 2025. We

paid a total of EUR 0.1 (9.6) million in schol-

arships.In2025,scholarshipsforqualified

employees could only be granted on the

basisofavocationalqualificationtakenby

31 July 2024.

In 2025, we paid a total of EUR 2,668 (3,163)

millioninfinancingcontributions(includ-

ing the Fund’s administrative expenses).

Employment Fund’s operations are su-

pervised by the Financial Supervisory

Authority.

EUR

million %

Employment Fund’s financing

for unemployment funds

Unemployment rate, %

Government and municipal contributions

paid to unemployment funds, EUR million

Employment Fund’s contributions paid

to unemployment funds, EUR million

500

1,000

1,500

2,000

2,500

2021 2022 2023 2024 2025

7.7%

6.8%

7.2%

909

714

700

1,463

1,039

1,098

8.4%

9.7%

747

699

1,063

1,238

15Report of the Board of Directors 2025

Employers

ﬁnances a portion of

the unemployment

allowances by tax

revenue.

pay unemployment

insurance contributions.

In certain situations,

they also pay a liability or

transition security component

and a compensation for disputes

concerning wrongful dismissal in

accordance with the Employment

Contracts Act.

The State

ﬁnances a portion of

the unemployment

allowances, once

unemployment exceeds

100 days.

Municipalities

Employees

pay unemployment

insurance contributions.

Contributions

collected

We ﬁnance Finnish working life extensively

We pay for the pensions accrued

during periods of unemployment

beneﬁts, adult education allowance

and job alternation leave to the

Finnish Centre for Pensions and

the State Pension Fund.

We pay a share of the basic daily

allowances to Kela.

We pay a share of the pay security

to the Ministry of Economic Affairs

and Employment.

We pay a share of the earnings-

related daily allowances to the

unemployment funds.

We pay the government and

municipalities contribution for

unemployment allowances to the

unemployment funds.

We fund training compensations

(available to municipalities,

parishes, associations and

foundations, for example).**

We fund the adult education

beneﬁts.****

Contributions

paid*

Net assets in

the business

cycle buffer

Net

ﬁnancial

income

The net assets

of the business

cycle buffer

decreased by

EUR 729 million.

605

EUR

million

600

EUR

million

607

EUR

million

EUR

million

1,907

EUR

million

2,668

EUR

million

Employment

Fund

million

1,063

EUR

million

668

EUR

million

EUR

million

EUR

million

EUR

million

699

EUR

million

EUR

million

EUR

We pay the costs of transition security

training to employment areas***

Figures for 2025

*Includes

administrative expenses

**Funded by

the Ministry of Finance

***Cost of transition

security allowance includ-

ed in unemployment

funds and Kelas ﬁgures.

****Includes adult educa-

tion allowance and

scholarship for qualiﬁed

employees.

We manage the allocation

of costs between the

Member States for the

earnings-related unem-

ployment beneﬁt, amount-

ing in total to EUR 0.2 mil-

lion.

EUR�

543

million

EUR

16Report of the Board of Directors 2025 Cooperation with stakeholders

Cooperation with stakeholders

Employment Fund cooperates

extensively with a broad range

of different parties. In the

management of our statutory

tasks, we work closely with

ministries, especially the

Ministry of Social Affairs and

Health, Ministry of Economic

Affairs and Employment and

the Ministry of Finance.

We are part of Finland’s statutory social

insurance scheme. In our implementation

tasks, we cooperate with unemployment

funds, Kela, Finnish Centre for Pensions,

Finnish Workers’ Compensation Center and

pension insurance companies. Our role as a

guarantor of liquidity requires smooth and

efficientcooperationwithbanksandfi-

nancial institutions. Labour market central

organisations are represented in the admin-

istration of Employment Fund and we also

cooperate with these organisations.

Employment Fund updated its approach to

stakeholder work during 2025 by making

it more systematic: We progressed towards

the goals we had set in accordance with

the annual clock. Together with the par-

ties involved in stakeholder cooperation,

we determined a shared situation picture,

applied agreed uniform operating methods

and worked together to tackle the themes

central to the Fund. During 2025, we partic-

ipated in the work of working groups and

consultations and submitted statements in

response to requests pertaining to us.

Lobbying activities targeting Parliament

and ministries must be disclosed to the

Finnish Transparency Register twice a

year. The activities reported by Employ-

ment Fund concern our statutory tasks,

matters under preparation and topical

issues. During 2025, our topics included

transition security and the promotion of the

employment of older people, potential ways

of implementing combination insurance,

adult education allowance and funding of

unemployment security, funding of general

socialsecuritybenefit,andtheoverhaulof

the Act on Unemployment Funds and the

Act on the Financing of Unemployment

Benefits.Youcantakeacloserlookatour

disclosures to the Finnish Transparency

In 2025, we invited all our stakeholders to

an event where we provided information

17Report of the Board of Directors 2025

about topical matters concerning the Fund

suchasfinancesandourdigitaljourney.In

addition to contacts with individual stake-

holders, we also provided up-to-date infor-

mation on our tasks and implementation

inregularnewslettersonspecificthemes,

at introductory meetings, in the stake-

holder event and on our website. In 2025,

we produced a broad range of material for

different stakeholders and updated the in-

formation content of our website. Based on

the feedback and wishes we received, we

produced extensive material for the needs

of our stakeholders. Our updated informa-

tion packages have been well received, and

in stakeholders’ view, they are informative

and generate added value. They provide a

good basis for continuing the dialogue.

We provided our customers and stakehold-

ers with advice in matters concerning the

use of our services and implementation

processes with webinars, training, news-

letters and informative website content. In

2025, in addition to providing information

for our customers, we also produced con-

tent for unemployment funds, employment

service personnel, labour law lawyers and

educational institutions. We also had reg-

ular meetings with social insurance actors

topromotecommonissuesandefficient

implementation.

We cooperate with social security institu-

tions in other EU and Nordic countries in

joint international forums. The aim of the

cooperation is to keep up to date on the

social security funding models of other

countries and to provide information on

themodelusedtofinanceFinnishsocial

security.

Our experts participated in the Nordic

seminar on unemployment security (NAF),

which was organised by Sweden. The sem-

inar discussed unemployment security re-

forms in individual countries, labour mobil-

ity in the Nordic area, information security

topicsandtheuseofartificialintelligence

in the implementation of unemployment

security.

We also participated in the work of the

(un)employment working group of ESIP

(European Social Insurance Platform),

which was intended for social security

organisations and in the ESIP forum dis-

cussing the contribution of social security

to competitiveness and growth in Europe.

Within the framework of international

cooperation, we also take part in the work

of NSFM (Nordisk Socialförsäkringsmöte),

ISSA (International Social Security Associ-

ation) and AEIP (The European Association

of Paritarian Institutions).

We want to be a valued partner for the me-

dia and provide reliable information on our

implementation work. We published media

releases and provided information on our

implementation process on our website

during the year.

Cooperation with stakeholders

18Report of the Board of Directors 2025

Customer service

Employment Fund’s overall

customer satisfaction score

(CSAT) showing the proportion

ofsatisfiedandhighlysatisfied

customers was again at a high

level (89%) in 2025.

EMPLOYER CUSTOMERS WERE

PARTICULARLY SATISFIED WITH

THE TELEPHONE SERVICE,

PREPARATIONS FOR THE ONLINE

SERVICE REFORM CONTINUE

Collection of the unemployment insurance

contributions has been a fully automated

process since 2019, and as a result, there is

only occasional need for customer advice.

For this reason, the volume of customer

contacts has been at relatively moderate

levels in recent years.

In 2025, our unemployment insurance con-

tribution services responded to

• 6,723 (9,542) customer calls

• 3,245 (3,653) customer messages in the

online service

• 16,167 (17,185) emails.

In 2025, overall customer satisfaction with

unemployment insurance contribution ser-

vices was 83% (77%). Unemployment insur-

ance contribution customers were particu-

larlysatisfiedwiththepersonalservice:A

total of 90% (93%) of the respondents to the

customersatisfactionsurveyweresatisfied

with the service they received by telephone

in 2025.

Overall satisfaction was lowered by the

online service, which is in need of an

overhaul. Satisfaction with online service

was only 37% (36%). In addition to customer

service, our focus was also on preparing the

procurement of the online service overhaul

project for our employer customers. In con-

nection with the procurement, we detailed

thespecificationworkcarriedoutin2024

and integrated Employment Fund’s new IT

capabilities into the implementation of the

procurement so that we could ensure the

smooth progress of the procurement and

the implementation project.

Customer service

19Report of the Board of Directors 2025

CUSTOMER SATISFACTION WITH

ADULT EDUCATION BENEFITS

REMAINED EXCELLENT AS THE

SHUTDOWN PROCESS PROGRESSED.

Personal advice was in demand among the

customers until the end of the transition

period for the abolition of the adult edu-

cationbenefits.Asthetransitionprocess

progressed, the number of customer con-

tacts also started to decline as the number

ofbenefitrecipientsdecreased.

In2025,ourbenefitservicerespondedto

• 4,581 (27,527) customer calls

• 9,001 (29,423) customer messages

• 327 (2,796) emails.

Ensuring customer satisfaction was our

key goal during the transition period and

this objective was fully met. Despite the

abolitionoftheadulteducationbenefits,

overall customer satisfaction score (CSAT)

remained at a high level (91%).

In2025,atotalof94%(95%)ofthebenefit

customerswhocalledusweresatisfied

with the service they received. During the

year, we started to gradually shut down the

telephone service for adult education bene-

fits:weshortenedtheserviceopeninghours

and in autumn 2025, we replaced the tra-

ditional telephone service with a call-back

service. The introduction of the call-back

option allowed us to organise the service in

aflexiblemannerinasituationwherethe

numberofbenefitserviceemployeesgradu-

ally decreased.

Customer satisfaction with the online ser-

viceforadulteducationbenefitswas92%

(95%). Extensive automation of the appli-

cation processing before the abolition was

announced and systematic development

work to improve the smoothness of online

services contributed to the strong result.

Customer service

20Report of the Board of Directors 2025

Unemployment insurance contributions

Employment Fund determines

and collects the unemployment

insurance contributions and

supervises that the employers

manage their obligations

concerning the unemployment

insurance contributions.

The obligation to pay unemployment insur-

ance contributions is based on the Act on

theFinancingofUnemploymentBenefits

(555/1998). Unemployment insurance con-

tributions are paid by employees aged be-

tween 18 and 64 as well as their employers.

The employer was liable to pay the unem-

ployment insurance contributions if the

wages and salaries paid by it exceeded

EUR 1,500 during 2025. No unemployment

insurance contributions are paid from an

entrepreneur’s earnings. Part-owners spec-

ifiedintheUnemploymentSecurityAct

(1290/2002) are obligated to pay unemploy-

ment insurance contributions but they pay

the lower rate paid by employees.

All wages, salaries, bonuses or similar com-

pensation that have been paid or have

been agreed to be paid during an em-

ployment relationship as compensa-

tion for work are considered income

that can be used as a basis for unemploy-

ment insurance contributions.

The employer deducts the employee’s un-

employment insurance contribution from

the employee’s wages when paying the

wages and reports the earnings payment

data to the Incomes Register. Employment

Fund receives the wage and salary details

directly from the Incomes Register and,

using the earnings payment data as a basis,

determines the unemployment insurance

contributions payable by the employers. We

collect the contributions four times each

year (in January, April, July and October) on

the basis of the wages and salaries paid in

the previous three months.

We make extensive use of automated deci-

sion-making when determining the unem-

ployment insurance contributions. In 2025,

automated decisions accounted for about

99% of all decisions on unemployment in-

surance contributions.

21Report of the Board of Directors 2025

AMOUNT OF UNEMPLOYMENT

INSURANCE CONTRIBUTION IN 2025

The unemployment insurance contribution

rates were lowered for 2025 in accordance

with the proposal made by the Fund. Low-

ering of the contributions from 2024 was

made possible by the estimated impact of

the measures set out in the Government

Programme, decisions made by the Gov-

ernment in its spending limits discussions,

outlook for the economy and employment,

and the high level of the business cycle

buffer.

The unemployment insurance contribu-

tions paid by employers totalled EUR 571

(766) million in 2025. The liability compo-

nents and transition security contributions

paid by employers, and the deductions

specifiedintheEmploymentContractsAct

totalled EUR 29 (24) million. The unem-

ployment insurance contributions paid by

employees totalled EUR 607 (806) million.

EUR

million

500

1,000

1,500

2,000

2,500

3,000

3,500

2021 2022 2023

Unemployment insurance

contributions collected

Employers

Employees

1,241

1,424

1,490

1,412

1,326

1,159

2,751

2,902

2024 2025

766

1,571

571

1,178

607

806

2,401

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2021

2023

2022

Employers

Employees

Unemployment insurance

contribution rates 2021–2025

1.42%

1.51%

1.54%

1.40%

1.50%

2024 2025

0.82%

0.79%

0.62%

0.59%

Unemployment insurance contributions

22Report of the Board of Directors 2025

UNEMPLOYMENT INSURANCE

CONTRIBUTION RATES WILL

INCREASE IN 2026

In August 2025, we proposed that the un-

employment insurance contributions for

the year 2026 should be increased by 0.6

percentage points. The proposal for increas-

ing the contributions was prompted by the

projection of a lower business cycle buffer,

lower income and higher than anticipated

unemployment rate as well as the outlook

for the economy and employment. Presi-

dent of the Republic approved the act on the

contributions for 2026 in December 2025.

Unemployment insurance contribution rates 2024 2025 2026

Employee’s unemployment insurance contribution 0.79 0.59 0.89

Employer’s unemployment insurance contribution, lower (1) 0.27 0.20 0.31

Employer’s unemployment insurance contribution, higher (2) 1.09 0.80 1.23

Employer’s average unemployment insurance contribution 0.82 0.62 0.92

Employee’s unemployment insurance contribution for part-owners 0.43 0.30 0.39

Employer’s unemployment insurance contribution for part-owners 0.27 0.20 0.31

Unemployment insurance contribution for unincorporated state

enterprises, lower (1) 0.27 0.20 0.31

Unemployment insurance contribution for unincorporated state

enterprises, higher (2) 0.65 0.43 0.72

Unemployment insurance contribution for universities, lower (1) 0.27 0.20 0.31

Unemployment insurance contribution for universities, higher (2) 0.71 0.49 0.79

(1)UptoapayrollofEUR2,337,000(2024);EUR2,455,500(2025);andEUR2,509,500(2026).

(2)ExceedingthepayrollofEUR2,337,000(2024);EUR2,455,500(2025);andEUR2,509,500(2026).

Unemployment insurance contributions

23Report of the Board of Directors 2025

SUPERVISION OF UNEMPLOYMENT

INSURANCE CONTRIBUTIONS

Employment Fund supervises that the

employers meet their obligations to pay the

unemployment insurance contributions.

The purpose of the supervision is to ensure

that the earnings payment data reported by

the employers as a basis for the unemploy-

ment insurance contributions correspond

to the actual wage and salary payments and

that the correct amounts of unemployment

insurance contributions are collected.

In the supervision, we check the accuracy

of the earnings payment data reported to

the Incomes Register. If we notice that an

employer has reported earnings payment

data to the Incomes Register incorrectly we

contact the employer in question and exam-

ine the correctness of the earnings payment

data in more detail.

The incorrect earnings payment data

uncovered in the supervision is often the

result of errors in the payroll system, mis-

understandings concerning the payment

obligation, or other errors. We provide em-

ployers with advice on matters concerning

the payment obligation and the reporting

of wages and salaries to ensure that em-

ployers report the earnings payment data

correctly.

In addition to the Incomes Register data,

we also receive each year from the Finnish

Tax Administration details of wages and

salaries uncovered in tax audits, which

we compare with the data reported to the

Incomes Register. We will contact the

employer if the earnings payment data has

not been reported to the Incomes Register.

In its supervisory activities, Employment

Fund also uses information on employers

received from other authorities and social

insurance providers. If necessary, we can

estimate the unemployment insurance con-

tribution based on the information received.

In 2025, we investigated 811 (1,099) cases

for supervision. Based on the supervision,

we ordered additional payments totalling

EUR 218,666 (EUR 338,357) and paid refunds

amounting to EUR 55,366 (EUR 19,188).

Unemployment insurance contributions

In 2025, we investigated 811 (1,099)

cases for supervision.

24Report of the Board of Directors 2025

TRAINING COMPENSATION

On 9 October 2025, the Finnish Government

submitted a proposal to Parliament on the

abolition of the training compensation

scheme. President of the Republic approved

the act in December 2025. The abolition

means that no training compensation will

be granted for training provided on or after

1 January 2026. Applications for compen-

sation for training days in 2025 could be

submitted in January 2026.

The purpose of the training compensation

has been to provide the employer with more

opportunities to organise training for its

employees so that they can develop their

vocational competence. Employers in the

public and third sectors such as municipal-

ities, wellbeing services counties, parishes,

universities, universities of applied scienc-

es, associations and foundations, have been

eligible for training compensation.

Employers have been able to apply for train-

ing compensation from Employment Fund

each year by the end of January of the fol-

lowing calendar year. We have granted and

paid the training compensation based on

the application submitted by the employer.

In 2025, we paid about EUR 14.6 (11.5) mil-

lion in training compensation to 614 (602)

employers. The employers eligible for the

compensation applied for compensation on

the basis of 594,266 (512,268) training days.

Of the employers receiving training com-

pensation, 274 (264) were cities and other

municipalities, 21 (21) wellbeing services

counties, 178 (177) associations and founda-

tions , 94 (94) parishes, 10 (10) universities

and 37 (36) other employers.

50%

11%

Training compensations paid

Wellbeing services counties

Universities

28%

Municipalities

Associations and foundations

Other

1%Parishes

14.6

EUR million

Unemployment insurance contributions

25Report of the Board of Directors 2025

EMPLOYER’S LIABILITY COMPONENT

Employment Fund may impose a liabili-

ty component on an employer and collect

it from this employer if the employer has

dismissed or laid off an employee close to

retirement and as a result, the employee

has remained out of work or laid off for a

prolonged period. We use liability compo-

nentpaymentstofinanceunemployment

security expenses resulting from dismiss-

als and lay-offs. Provisions on determining

the liability component and the collection

procedure are laid down in chapter 8a of

the Act on the Financing of Unemployment

Benefits(555/1998).

The right to additional days of unemploy-

ment security will be gradually abolished.

This also means that the collection of liabil-

ity components will end. The new statutory

transition security contribution for employ-

ers dismissing employees will replace the

liability components during a transition

period. Employees born in 1964 are the last

age group eligible for the additional days

and for whom the employer is obliged to

pay the liability component. The transition

period for the liability component will end

by the year 2035.

Rising unemployment and changes in the

age limits of the right to additional days of

unemployment security have led to an in-

crease in the number of liability component

cases. We received about 5,480 (3,900) new

liability component cases in 2025, which is

about 41% more than in 2024. We imposed

a liability component on the employer in

about 470 (370) cases.

We recorded about EUR 8 (7) million in

liability components in 2025. The average

processing time in cases that led to a pay-

ment decision was 85 (59) days.

TRANSITION SECURITY

CONTRIBUTION FOR EMPLOYERS

DISMISSING EMPLOYEES

The employer may be obliged to pay the

transition security contribution if the em-

ployer has dismissed an employee aged 55

oroveronproduction-relatedorfinancial

grounds and the employee had been em-

ployed by the employer in question for at

leastfiveyears.Thecontributiondoesnot

apply to the smallest employers as the total

payroll subject to the employer’s unemploy-

ment insurance contribution must exceed

an annually reviewed minimum amount,

which was about EUR 2.3 million in 2024.

The transition security contribution is cal-

culated from the payroll of the year preced-

ing the year of the dismissal.

We collect the transition security contribu-

tionstofinancetheemployee’stransition

security package. The transition security

package consists of transition security

training and transition security allowance.

The employment authority provides the dis-

missed employee with transition security

training corresponding to two months’ pay.

Kela or the unemployment fund will also

pay the employee a transition security al-

lowance corresponding to one month’s pay.

Employment Fund has collected transi-

tion security contributions from employers

since the beginning of 2023. Provisions

on determining the transition security

contribution and the collection procedure

Unemployment insurance contributions

26Report of the Board of Directors 2025

are laid down in chapter 4a of the Act on

theFinancingofUnemploymentBenefits

(555/1998).

The number of cases has increased as a

result of rising unemployment and better

awareness of transition security. We re-

ceived about 4,600 (3,200) transition secu-

rity cases in 2025, which is about 44% more

than in 2024. We imposed a transition secu-

rity contribution on the employer in about

2,900 (2,400) cases. The most common

reason for not imposing the contribution is

that the payroll limit is not met.

We recorded about EUR 21 (16) million in

transition security contributions in 2025.

The average processing time in cases

leading to a payment decision increased

slightly: from 57 days in 2024 to 64 days in

2025.

RECONCILIATION UNDER THE

EMPLOYMENT CONTRACTS ACT

Employment Fund acts as an expert in the

reconciliation of the compensation paid in

disputes concerning termination of employ-

ment and the unemployment allowance

received by the employee. An employer

that has laid off an employee or ended an

employee’s employment contract in viola-

tion of the provisions of the Employment

Contracts Act is liable to pay compensation

to the employee. A total of 75% of the com-

pensation is deducted from the earnings-re-

latedunemploymentbenefitspaidtothe

employee after the employment relation-

ship has ended when compensation is paid

for salary losses due to unemployment. The

employer pays the deduction to Employ-

ment Fund.

ThereconciliationspecifiedintheEm-

ployment Contracts Act is made when a

court orders payment of compensation or

when the parties to the dispute agree on

a compensation. The court must consult

Employment Fund if after the end of the

employment relationship or for the dura-

tion of the lay-off, the plaintiff has received

earnings-related unemployment allowance.

We issued about 720 (680) statements and

contract comments in 2025.

Unemployment insurance contributions

27Report of the Board of Directors 2025

EUR

607

571

were paid by empolyers

51,5% 48,5%

Uncollected contributions

accounted for

0.25%

Our aim is to have efficient digital services and satisfied customers

UNEMPLOYMENT INSURANCE CONTRIBUTIONS

WERE PAID BY

employers and other parties

liable to pay them

135,125

AMOUNT OF UNEMPLOYMENT INSURANCE

CONTRIBUTIONS COLLECTED

CUSTOMER SATISFACTION

(CSAT)

83%

CUSTOMER CONTACTS FOR UNEMPLOYMENT

INSURANCE CONTRIBUTIONS (PCS)

67,948

6,723

Phone calls

1,328

Calculators

were used

16,167

Emails

36,558

Logins to

online service*

3,245

Messages in

online service

EUR 1,178 million

NUMBER OF UNEMPLOYMENT INSURANCE

DECISIONS

484,258 pcs

were automated

decisions

TRAINING COMPENSATIONS WERE

REFUNDED TO

614 employers

NUMBER OF CASES FOR SUPERVISION

Decisions based on

supervision

894 pcs

811 pcs

of which

99%

million million

EUR

were paid by employees

of the total

times

Website visits

All figures are from the period 1 January – 31 December 2025. *Logins to online service are estimates from the same time period.

Unemployment insurance contributions

28Report of the Board of Directors 2025

Adult education benefits

Adulteducationbenefits

The year of the adult education

benefitswascharacterised

by the implementation of

the abolition set out in the

Government Programme. The

transition period for abolishing

the adult education allowance

began on 1 August 2024 and

ended on 31 December 2025.

In 2025, in accordance with the act abolish-

ing the allowance scheme, adult education

allowances could only be granted to wage

and salary earners or full-time entrepre-

neurs whose studies and allowance period

had started on 31 July 2024 at the latest. In

2025,scholarshipsforqualifiedemployees

could only be granted on the basis of a vo-

cationalqualificationtakenby31July2024.

The application for the scholarship had to

be submitted within one year of completing

thequalification.

Despite the long transition period, the im-

plementationoftheadulteducationbenefits

has progressed smoothly, thanks to a fully

digitalised application process.

Employees’adulteducationbenefitshave

beenfinancedentirelyfromtheunem-

ployment insurance contribution income.

The government has been responsible for

financingtheadulteducationallowance

scheme for entrepreneurs and scholarships

forqualifiedemployeesworkingforcentral

government.

DEVELOPING COMPETENCE WITH

ADULT EDUCATION ALLOWANCE

FOR MORE THAN 20 YEARS

Adult education allowances have been

granted since 2001. Employees and en-

trepreneurs who have been working for

at least eight years were eligible for adult

education allowance. The allowance was

intended for maintaining and developing

professional competence and it could be

granted for studies conducted under public

oversight in Finland. The studies had to

lead to a full degree, a partial degree or be

further or continuing vocational training.

In 2025, a total of EUR 77 (203) million in

adult education allowances was paid to

15,144 (31,796) persons. As a result of the ab-

olition of the scheme, the amount paid was

about 62% lower than in 2024. Of the recip-

ients, 455 (1,104) received entrepreneurs’

adult education allowances and 14,689

(30,694) received employees’ adult educa-

tion allowances.

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2021 2022 2023

Recipients, persons

(includes entrepreneurs)

Adult education allowances paid,

EUR million

Number of recipients and

adult education allowances paid

EUR

million

persons

28,322

30,124

32,518

2024 2025

15,144

175.3

177.9

200

180

160

140

120

100

189.3

202.7

77.1

31,796

29Report of the Board of Directors 2025

THE NUMBER OF APPLICATIONS

DECREASED AS FORECAST AS THE

TRANSITION PERIOD PROGRESSED

The application procedure for employee’s

adult education allowance was a two-step

process. Based on the allowance right ap-

plication, the recipient received eligibility

for adult education allowance for the period

specifiedintheapplication.

After this, the applicant was able to apply

for an allowance payment retrospective-

ly for each month on a separate payment

application. If the applicant wanted to work

between their study leave periods and thus

spread the studies over a longer period, a

new allowance right application for new

allowance periods had to be submitted to

Employment Fund.

In 2025, we received 13,701 (34,125) allow-

ance right applications and 71,034 (164,323)

payment applications. The average process-

ing time for allowance right applications

was 10 (9) days and for payment applica-

tions 1 (1) day. Automated decisions ac-

counted for 56% of the extension applica-

tions for allowance right and for 89% of the

payment applications.

Applications for adult education allowance

5,000

10,000

15,000

20,000

25,000

-47%

-51%

-55%

-59%

-61%

-60%

-66%

-67%

-69%

-71%

applications

2024

2025

January February March

April

May June July August September

October

November

December

-37%

-65%

30Report of the Board of Directors 2025 Adulteducationbenefits

SCHOLARSHIPS FOR QUALIFIED

EMPLOYEES ON THE BASIS OF A

VOCATIONAL QUALIFICATION

Thescholarshipschemeforqualifiedem-

ployees was introduced in 1996. A person

residing in Finland was eligible for the

scholarship if they had completed initial

vocationalqualification,furthervocational

qualificationorspecialistvocationalquali-

fication,wasunder68yearsofage,andhad

workedforatleastfiveyearsbythedateon

whichtheyhadcompletedthequalification.

Thescholarshipforqualifiedemployees

was a tax-exempt lump sum of EUR 414.

Employment Fund received only 263

(29,124) applications for scholarships for

qualifiedemployees,andontheirbasiswe

granted a total of EUR 0.1 (9.6) million in

scholarships to 148 (23,009) persons in 2025.

Because of the abolition of the scheme no

further applications could be submitted

after 31 July 2025.

EUR

million

5,000

10,000

15,000

20,000

25,000

30,000

recipients

Recipients of scholarships

for qualified employees

and scholarships paid

2021 2022 2023

Recipients of scholarships for

qualified employees, persons

Scholarships paid, EUR million

25,949

27,755

28,485

2024

23,009

10.4

11.5

11.8

9.6

2025

148

0.1

31Report of the Board of Directors 2025 Adulteducationbenefits

APPEALS AND RECOVERY OF BENEFITS

PAID WITHOUT JUSTIFICATION

Applicantswhowerenotsatisfiedwiththe

outcome of their application for a scholar-

shipforqualifiedemployeesoradultedu-

cation allowance had the right to appeal

againstthedecision.Thefirstappellate

body is the Social Security Appeal Board

(SAMU).Thesecondandfinalappellate

body is the Insurance Court. In 2025, the

Appeal Board received 89 (217) complaints.

The Insurance Court received 23 (17) com-

plaints. The complaints mainly concerned

therecoveryofbenefitsortherevisionof

benefits,takingintoaccountadditionalin-

come based on their time of payment.

Ifabenefithasbeenpaidwithoutjustifica-

tion or the amount paid out was too high,

the excess must be recovered from the re-

cipient. A total of 739 (1,431) recovery deci-

sions were made.

IN THE DEVELOPMENT WORK,

THE FOCUS WAS ON PLANNING

THE SHUTDOWN OF THE

SYSTEMS AND ARCHIVING OF

THE BENEFIT INFORMATION

Inthedevelopmentofthebenefitsystems

and processes, we focused on the chang-

es set out in the legislation abolishing the

schemes, the necessary system updates

and the safeguarding of functional capacity.

Theprojecttostoreandarchivethebenefit

data was launched in autumn 2025. In the

project,thebenefitdatatobearchivedwill

be transferred to the archiving system so

that the data can be stored in accordance

with the law. The project progressed as

planned during the autumn, and the trans-

ferofdatafromallbenefitsystemsbegan

before the turn of the year.

32Report of the Board of Directors 2025 Adulteducationbenefits

CUSTOMER CONTACTS FOR ADULT

EDUCATION ALLOWANCE (PCS)

15,144

persons of whom

97% were employees

and 3% entrepreneurs

ADULT EDUCATION ALLOWANCES

WERE GRANTED TO

NUMBER OF ADULT EDUCATION ALLOWANCE DECISIONS

FOR EMPLOYEES

14,108 pcs

Allowance right decisions

71,048 pcs

Payment decisions

89%

of all decisions were

automatic decisions

10 days

Average

processing time

1 days

Average

processing time

176 pcs

6 days

Average

processing time

344,662

4,581

13,569

327

227,932 9,001

Aiming for efficient digital services and customer satisfaction

CUSTOMER SATISFACTION

(CSAT)

91%

Phone calls

Calculators

were used

Emails

Logins to online

service

Messages in

online service

NUMBER OF ADULT EDUCATION ALLOWANCE DECISIONS

FOR ENTREPRENEURS

56%

of all decisions were

automatic decisions

Website visitors

All figures are from the period 1 January – 31 December 2025.

33Report of the Board of Directors 2025

Finance

BUSINESS CYCLE BUFFER AND

CHANGE IN NET POSITION

Employment Fund maintains a statutory

business cycle buffer to ensure liquidity

and balance out changes in unemployment

insurance contributions. The business cycle

buffer accrues on the basis of the difference

between Employment Fund’s assets and

liabilities. When the unemployment insur-

ance contributions are set, the forecast for

the maximum amount of assets or liabili-

ties in the buffer may not exceed expenses

corresponding to an unemployment rate of

six percentage points. When the decision

on the level of unemployment insurance

contributions is made, the forecast for the

business cycle buffer may by law exceed

the maximum amount of assets over two

years during a three-year review period to

ensure a steady payment trend. In that case,

however, unemployment insurance contri-

butions may not be set higher than in the

previous year.

The maximum amount of the buffer is cal-

culatedonthebasisoftheannualfinancial

statements by dividing the annual expens-

es for which Employment Fund is liable

(EUR 1,969 million in 2025) by the average

unemployment rate for the year (9.7), and

multiplying the result by six. The statutory

maximum amount of the business cycle

buffer was EUR 1,218 (1,726) million in 2025.

EUR

million

1,868 1,861

-2,220

-2,500

-2,000

-1,500

-1,000

-500

500

1,000

1,500

2,000

2,500

2021 2022 2023 2024

Changes in business cycle buffer

Net position Maximum amount Minimum amount

633

1,258

2,021

2,220

-1,868

-1,861

1,726

-1,726

1,272

2025

1,218

-1,218

543

34Report of the Board of Directors 2025 Finance

According to our budget for 2026, which we

submitted to the Ministry of Social Affairs

and Health in August 2025, the change in

Employment Fund’s net position would be

about EUR 744 million negative in 2025 and

about EUR 5 million positive in 2026. In the

same connection we estimated that the net

position would be about EUR 528 million

positive on 31 December 2025 and about

EUR 533 million positive on 31 December

2026.

Change in the Fund’s net position was EUR

729 million negative (EUR 749 million neg-

ative) in 2025. The Fund’s net position to-

talled EUR 543 million on 31 December 2025

(EUR 1,272 million on 31 December 2024).

Whenpreparingourfinancialstatements

for 2025, we estimated that the change in

Employment Fund’s net position would be

about EUR 100 million negative in 2026,

which would mean a positive net position

of about EUR 440 million at the end of 2026.

The main factor behind the weakened esti-

mate is the forecast of a higher unemploy-

ment rate for 2026: 9.7% (previously 8.9%).

EUR

million

-800

-600

-400

-200

200

400

600

800

1,000

2025

2021 2022 2023 2024

Change in net position

-412

625

763

-749

-729

35Report of the Board of Directors 2025 Finance

LIQUIDITY AND DEBT FINANCING

Undertheinvestmentanddebtfinancing

principles approved by Employment Fund’s

SupervisoryBoard,infixed-incomeinvest-

ments with less than one year’s maturity,

the Fund must keep an amount that covers

at least one month’s expenses (about EUR

222 million in 2025). On average, the liquid-

ity buffer described above was 1.9 times the

minimum amount in 2025.

For liquidity purposes, the Fund also has

a EUR 300 million commercial paper pro-

gramme (31 Dec 2024: EUR 300 million). The

Fund also has EUR 600 million in commit-

ted revolving credit facilities (RCF) with

four banks (31 Dec 2024: EUR 600 million).

The commercial paper programme and the

revolving credit facilities remained unused

at the end of 2024 and at the end of 2025.

At the end of 2025, Employment Fund had a

bond of EUR 600 million, which is due on 16

June 2027.

The credit rating agency S&P Global Ratings

has given Employment Fund a credit rating

of AA+ (stable outlook)/A-1+. S&P Global

Ratings has given the same rating to the

State of Finland.

We estimate that the change in Employment Fund’s

net position would be about EUR 100 million negative

in 2026, which would mean a positive net position

of about EUR 440 million at the end of 2026.

36Report of the Board of Directors 2025

Investment activities

Employment Fund carries out

investment activities to the

extent necessary to manage the

timing differences in the cash

flowsgeneratedbyitsincome

and expenses, and for liquidity

management purposes.

Employment Fund’s investment assets,

cash and cash equivalents totalled EUR 857

(1,513) million at the end of 2025.

One of the key goals of Employment Fund’s

investment activities is to support the per-

formance of the Fund’s statutory duties and

toensuresufficientliquiditytofinancethe

expenses for which Employment Fund is

responsible. The Fund’s Board of Directors

determines the goal for our investments

in the annually approved investment plan,

and decides on the allocation of investment

funds across different asset classes. The in-

vestment plan is guided by the investment

anddebtfinancingprinciplesapprovedby

the Supervisory Board.

FINANCIAL OPERATING ENVIRONMENT

Finland’s economic growth was close to

zero in 2025. In unemployment, the trend

was upwards throughout the year. At the

end of the year, the trend was 10.7% and this

figurewashigherthanatanytimeduring

the measurement history, which started in

2010. Unemployment reached 9.7% (8.4%) in

2025.

Asinflationintheeuroareastabilisedat

two per cent during the year, the down-

ward trend in interest rates that had began

in 2024 continued during 2025. Between

January and June 2025, the European Cen-

tral Bank lowered its key interest rate four

times by 0.25 percentage points, from 3% to

2%. For the rest of the year, the key interest

rate remained unchanged. Similarly, the US

central bank FED and several other central

banks lowered their key interest rates in

2025.

THE INVESTMENT MARKET

For the most part, stock markets grew rap-

idly during 2025: when measured in domes-

tic currencies, the stock indices in the main

markets in North America rose by about

18.3% and in Europe by about 21.3%. The

trend in the Helsinki Stock Exchange was

also positive and the index yield was 40.9%.

37Report of the Board of Directors 2025

Thefixed-incomeinvestmentsintheFund’s

main investment categories in European

bonds generated relatively high returns.

Pricing of credit risks was tightened during

2025,whichgaveaboosttofixed-income

investments. Fixed-income investments

generated steady returns in the main cat-

egories of the Fund’s bond investments

(government bonds, bonds issued by banks

with high credit rating and bonds issued by

companies with high credit rating) for the

whole duration of the year.

Market trends of alternative investments

during the year depended to a great extent

on the investment category concerned. In-

vestments in the domestic real estate sector

in residential, commercial and publicly

owned properties continued to generate low

returns in 2025, with the exception of in-

vestments in forest properties, which yield-

ed high returns. Investments in non-listed

shares and non-listed corporate loans yield-

ed high returns. Investments in renewable

energy generated low returns.

ALLOCATION OF INVESTMENTS

We actively invested our assets in money

market instruments, bonds, equities and

alternative investments. Depending on the

asset class, the Fund made direct invest-

ments or invested its assets through funds.

In our investment plan for 2025, we slightly

increased the weight of our investments in

bonds and slightly reduced the weight of

money market investments. At the end of

thefinancialperiod,EUR309(590)million

of the Fund’s assets were invested in money

market instruments, EUR 441 (775) million

in bonds, EUR 28 (44) million in equities,

and EUR 87 (103) million in alternative in-

vestments. In 2025, the return on our invest-

ments was 2.9% (4.2%).

The return was at the same level as the

reference return of 2.9% (3.9%) on our in-

vestments but remained slightly below the

expected return of 3.2% (3.6%) envisaged in

our investment plan. We also take sustain-

ability matters into account when making

investment decisions. Sustainability in the

Fund’s investment activities is described in

more detail under Sustainable investment

in the section on sustainability (page 52).

-4

-3

-2

-1

2021 2022 2023 2024

Return on investments

Return on investments Reference return

0.7

0.5

-2.9 -2.8

4.1 4.1

4.2

3.9

2025

2.9

36%

51%

10%

Investment spread

Money market

Bonds

Alternative

investments

3%Equities

865

EUR million

Investment activities

38Report of the Board of Directors 2025 Investment activities

EUR million

Largest investments

0 20 40 60 80 100 120

Suomen Asuntohypopankki deposit

OP Corporate Bank bond

North Rhine-Westphalia bond

LocalTapiola Short Bond A

OP Euro II A fixed income fund

Evli Likvi B

SEB Euro Short Rate Fund IC fixed income fund

Dutch government bond

Swedbank bond

Finnish government bond

EUR

107.6 million

EUR 26.8 million

EUR 24.8 million

EUR 24.3 million

EUR 22.4 million

EUR 22.1 million

EUR 15.4 million

EUR 15.2 million

EUR 14.2 million

EUR 14.1 million

39Report of the Board of Directors 2025 Sustainability

Sustainability

We promote sustainable

development and sustainability

in the areas where we can

maximiseourinfluencethrough

our core activities.

In our role as a provider of funding for

social security, we put great emphasis on

social responsibility themes. The sustain-

able development goals set out in the UN

Agenda 2030 serve as the framework for

the Fund’s sustainability work, and we have

identifiedthreekeygoalsintheAgenda.In

addition to these goals, sustainability is also

reflectedinourinvestmentactivitiesand

theacquisitionofdebtfinancing.

During 2025, we utilised a variety of differ-

ent networks to develop our sustainability

competence. We are part of the corporate

responsibility network FIBS and used its

events and information services covering

topical sustainability themes. We took ac-

tive part in the events organised by the sus-

tainability network maintained by the State

Treasury, in which public administration

organisations share information on such

matters as best practices of sustainability

and sustainability reporting.

40Report of the Board of Directors 2025 Sustainability

OUR BASIC TASKS AND IDENTIFIED

AGENDA 2030 GOALS

Based on a materiality analysis, we have

identifiedthefollowingsustainabledevel-

opment goals of the UN on which we can

exertmaximumpositiveinfluencewithour

owncoreactivities.Wehaveidentifiedthe

following key goals of the Agenda 2030 as

such objectives:

• Decent work and economic growth

• Quality education

• Peace, justice and strong institutions

These key goals are directly linked to the

Fund’scoretaskssuchasthefinancingof

unemployment security and adult educa-

tionbenefits.Withtheabolitionoftheadult

educationbenefitsandtheemployers’train-

ing compensation scheme, we must review

our Agenda 2030 goals during 2026 as the

opportunities to promote the quality edu-

cation goal as part of our core tasks will be

significantlyreducedafter2025.

SUSTAINABLE FUNDING OF

UNEMPLOYMENT SECURITY

PROVIDES SECURITY FOR

CHANGES IN WORKING LIFE

We collect the unemployment insurance

contributionstofinancesuchschemesas

unemployment security, transition security

for employees aged 55 and over, pay secu-

rity, pension security and adult education

benefits.EmploymentFundmaintainsa

business cycle buffer to ensure liquidity

and balance out changes in unemployment

insurance contributions. The business cycle

buffer accrues on the basis of the differ-

ence between Employment Fund’s assets

and liabilities. The business cycle buffer

grows when the Finnish economy is doing

well and employment rates are high. The

funds accumulated in the buffer are used

during economic downturns, which curbs

the pressure to increase the unemployment

insurance contributions of employers and

employees. By carrying out our basic task

effectively, we support the UN sustainable

development goal of decent work and eco-

nomic growth.

Ourtaskistoensuresustainablefinancing

of unemployment security by keeping

• unemployment insurance contributions

at appropriate level and at the same

time,minimisefluctuations,

• collect unemployment insurance

contributionsefficiently,

• maintain good liquidity,

• invest our assets in a productive and

secure manner, and

• anticipate economic and employment

fluctuationsinFinland.

Sustainablefinancingofunemployment

security strengthens social peace. With

unemployment security, individuals are in

a better position to seek jobs meeting their

needs. Social stability also supports Fin-

land’s economic growth.

41Report of the Board of Directors 2025 Sustainability

Indicators for the goal of appropriate level of unemployment insurance contributions:

Indicator Target level Level in 2025 Level in 2024

Unemployment insurance contributions and other

income EUR 1,907 million EUR 2,347 million

Financingcontributionspaid EUR 2,637 million EUR 3,129 million

Change in net position EUR -729 million EUR -749 million

Business cycle buffer/maximum Positive but below maximum EUR 543/1,218 million EUR 1,272/1,726 million

Indicator for the goal of steady development of unemployment insurance contribution rate:

Indicator Target level Level in 2025 Level in 2024

Unemployment insurance contribution rate

(average) Small annual variation

employers 0.62%,

employees 0.59%

employers 0.82%,

employees 0.79%.

Indicatorsforthegoalofefficientcollectionofunemploymentinsurancecontributions:

Indicator Target level Level in 2025 Level in 2024

Actual credit losses on unemployment insurance

contributions Minimal EUR 3.5 million EUR 2.7 million

Indicators for the goal of good liquidity:

Indicator Target level Level in 2025 Level in 2024

Fixed-income investments with less than one

year’s maturity in relation to one month’s expenses. 1x or more EUR 433 million/1.9x EUR 821 million/3.1x

Unused committed credit facilities EUR 600 million EUR 600 million

Indicators for the goal of productive and secure investment:

Indicator Target level Level in 2025 Level in 2024

Returnoninvestment%;Benchmarkindexreturn%

Return on investment % at least

benchmark index return % 2.9%/2.9% 4.2%/3.9%

Average portfolio credit risk At least BBB- BBB+ BBB+

Total portfolio risk Moderate 4.38% (moderate) 4.07% (moderate)

42Report of the Board of Directors 2025 Sustainability

Appropriate level of unemployment

insurance contributions

In 2025, we collected a total of EUR 1,907

(2,347) million in unemployment insurance

contributions and other income. Employ-

ers’ unemployment insurance contribution

income accounted for EUR 571 (766) million

and employees’ unemployment insurance

contribution income for EUR 607 (806) mil-

lion of this total.

In 2025, we paid EUR 2,637 (3,129) million in

financingcontributionstofinanceunem-

ployment security, transition security, pay

security, pension security and adult educa-

tionbenefits.

Our annual result (change in net position)

was EUR -729 (-749) million.

Employment Fund’s business cycle buff-

er was EUR 543 (1,272) million positive at

the end of 2025. The statutory maximum

amount of the business cycle buffer was

EUR 1,218 (1,726) million in 2025. Our liquid-

ity remained good throughout the year.

Steady development of unemployment

insurance contribution rate

Unemployment insurance contributions

were lowered for the year 2025. The lower-

ing was prompted by an improved outlook

for the economy and employment, good lev-

el of the business cycle buffer and the fact

that the measures set out in the Govern-

ment Programme are expected to decrease

expenditure.

In 2025, the average employer’s contribution

was 0.62% of the wages or 0.20 percentage

points less than in 2024. The employee’s

contribution was 0.59% of the wages or 0.20

percentage points less than in 2024.

43Report of the Board of Directors 2025 Sustainability

Efficient collection of unemployment

insurance contributions

The actual credit losses arising from unem-

ployment insurance contribution receiva-

bles totalled EUR 3.5 (2.7) million in 2025.

Credit losses accounted for about 0.30%

(0.17%) of the unemployment insurance

contributions collected in 2025.

Good liquidity

Tosecureitsliquidity,infixed-incomein-

vestments with less than one year’s matu-

rity, Employment Fund keeps an amount

that covers at least one month’s expenses.

In2025,thesefixed-incomeinvestments

averaged EUR 433 (821) million. In 2025,

theaverageamountofthesefixed-income

investments was 1.9 (3.1) times higher than

one month’s expenses. For liquidity pur-

poses, the Fund also has a EUR 300 million

commercial paper programme (31 Dec 2024:

EUR 300 million). The Fund also has EUR

600 million in committed revolving cred-

it facilities (RCF) with four banks (31 Dec

2024: EUR 600 million). The commercial

paper programme and the revolving credit

facilities remained unused at the end of

2025 (unused on 31 Dec 2024).

Productive and secure investment

In 2025, the return on our investments was

2.9% (4.2%). The return was at the same

level as the reference return of 2.9% (3.9%)

on our investments but remained slightly

below the expected return of 3.2% (3.6%)

envisaged in our investment plan.

The average credit rating of our investment

portfolio is evaluated on Standard & Poor’s

rating scale, which is based on historical

probabilities of credit losses. The invest-

ment portfolio credit rating is estimated to

be about BBB+ on 31 December 2025 (31 Dec

2024: BBB+).

Attheendofthefinancialperiod,EUR309

(590) million of the Fund’s assets were

invested in money market instruments, and

EUR 441 (775) million in bonds. These in-

vestments account for 86.7% (90%) of our to-

tal investment portfolio. In our investment

plan for 2025, the minimum proportion of

money market and bond investments has

been set at 85% (87%).

The total risk of our investment portfolio

was 4.38% (31 Dec 2024: 4.07%). The risk

posed by the investment portfolio is mod-

erate due to its conservative structure and

moderately low risk level of the securities

in the portfolio.

44Report of the Board of Directors 2025

Equality and diversity work

Sustainabilityisalsoreflectedinourequal-

ity and diversity work. The Fund has a

diversity working group, the aim of which

is to identify and discuss issues concerning

the diversity of the work community and

definethepracticaldevelopmentmeasures

that may be needed in our work communi-

ty. The task of the working group is also to

promote the experience of all our employees

of an open and equal work community. By

ensuring a safe working environment for

all our employees, we can also contribute

to the achievement of the objective ‘Decent

work and economic growth’, one of the key

goals of the UN Agenda 2030.

In 2025, we implemented development

steps in accordance with the Fund’s

non-discrimination, equality and diversi-

ty plan by strengthening our competence

and joint operating principles. We prepared

training for the personnel on the themes of

non-discrimination, equality and diversity

and prepared the principles of a safer and

bolder space for the Fund to support an

open and respectful working environment.

We also made preparations for the new

requirements set out in the Pay Transpar-

ency Directive, which will enter into force

at national level in 2026.

Towards the end of the year, we surveyed

theouremployees’experiencesinthefield

of non-discrimination and inclusion. The

findingswillbeusedasabasisforthenext

two-year plan so that we can target devel-

opment measures effectively and strength-

en the inclusive work community.

ADULT EDUCATION BENEFITS HAVE

PROMOTED CONTINUOUS LEARNING

AND UPDATING OF COMPETENCE

Adulteducationbenefitshavebeenusedto

support the professional development and

competence renewal of adults in working

life. This support continued in the transi-

tion period during the abolition process.

Our goal has been to implement the adult

educationbenefitschemeinaneffective

manner and increase awareness of the ben-

efits.Theseobjectiveshavepromotedthe

achievement of the goal of quality educa-

tion set out in the Agenda 2030.

Sustainability

45Report of the Board of Directors 2025

Weusethefollowingindicatorstoassesshoweffectivelyadulteducationbenefitshavebeenimplementedandhowawarenessofthem

has spread:

Indicators of the awareness goal:

Indicator Target level Level in 2025 Level in 2024

Number of recipients (adult education allowance) 15,144 persons 31,796 persons

Numberofrecipients(scholarshipforqualifiedemployees) 148 persons 23,009 persons

Indicators of the goal of effective implementation:

Indicator Target level Level in 2025 Level in 2024

Application processing time (allowance right application,

adult education allowance, average) Less than 15 days 13.7 days 13.8 days

Application processing time (payment application, adult

education allowance, average) Less than one day 1.0 days 0.5 days

Applicationprocessingtime(scholarshipforqualified

employees, average) Less than 10 days 4.9 days 6.8 days

Sustainability

46Report of the Board of Directors 2025

Increasing awareness

With regard to the adult education ben-

efits,theyearwascharacterisedbytheir

abolition as set out in the Government

Programme. The act abolishing the bene-

fitsenteredintoforceon1June2024.The

transition period for abolishing adult edu-

cationbenefitsstartedon1August2024and

it continued until 31 December 2025. The

last adult education allowance payments

will be made in early 2026 and the last

payments of the scholarship scheme for

qualifiedemployeestookplacein2025.In

2025, adult education allowances were paid

to 15,144 (31,796) persons. In 2025, scholar-

shipsforqualifiedemployeesweregranted

to 148 (23,009) persons.

In addition to the number of recipients, we

have also used a variety of different com-

munication indicators to assess awareness

of adult education allowance. However,

with the abolition of the allowance scheme,

there has been no longer any need to in-

crease awareness and instead, we have

focused on guiding our customers and ed-

ucational institutions. We have used active

communication to clarify the impacts of the

abolitionofadulteducationbenefitstoour

stakeholders.

Effective implementation

Due to the abolition of the allowance

scheme, the number of applications for

adulteducationbenefitsdecreasedin2025.

At the same time, the number of persons

processing the applications in Employment

Funddecreasedsignificantly.Despitethe

reduced resources, we managed to keep our

processing times at a good level. In 2025,

the average processing time for allowance

right applications for adult education allow-

ance was 13.7 (13.8) days and for payment

applications 1 (0.5) days. The average pro-

cessing time for applications for scholar-

shipsforqualifiedemployeeswas4.9(6.8)

days.

Training compensation

Processing of employers’ training compen-

sations in Employment Fund will continue

until the early months of 2026. The act abol-

ishing the training compensation scheme

entered into force on 1 January 2026, and

training compensations will no longer be

paid for training taking place in 2026. The

purpose of the training compensation was

to improve the employer’s opportunities to

organise training for its employees so that

they can enhance their vocational compe-

tence. Bodies such as wellbeing services

counties, municipalities, parishes, associa-

tions and foundations were eligible for the

compensation. In 2025, we paid EUR 14.6

(11.5) million in training compensation to

614 (602) employers.

Transition security training

Our tasks include collecting the transition

security contribution from employers dis-

missing staff members. We use the transi-

tionsecuritycontributionstofinancethe

transition security package for dismissed

employees aged 55 or over, which consists

of transition security training correspond-

ing to two months’ salary and a transition

security allowance corresponding to one

month’s salary. We recorded about EUR 21

(16) million in transition security contribu-

tions in 2025.

Sustainability

47Report of the Board of Directors 2025

WE ARE CONTINUOUSLY ENHANCING

THE TRANSPARENCY AND

EFFICIENCY OF OUR ACTIVITIES

Compliance with and development of the

principles of good governance help us to be

amoreefficient,transparentandresponsi-

ble actor. We also combat the grey economy

in Finland in cooperation with other public

organisations and the authorities. Through

these measures, we promote the achieve-

ment of the objective of peace, justice and

strong institutions set out in the UN Agenda

2030.

We are continuously developing our princi-

ples and practices of good governance. The

Fund has a channel for reporting suspect-

ed misconduct, and the reports received

throughthechannelareprocessedconfi-

dentially and, if necessary, anonymously.

Youcanusethechanneltoreportsuspected

misconduct falling within the scope of the

Whistleblower Act or Employment Fund’s

ethical guidelines, including matters con-

cerningthebreachesoffinancialmarket

regulations. We comply with the EU’s

General Data Protection Regulation, oth-

er legislation applicable to our operations

andofficialinstructionsontheprocessing

of personal data. In 2025, we conducted

an ethical survey, reviewed its results and

provided our personnel with training on

the Fund’s ethical guidelines to ensure that

everybody in the Fund is better placed to

identify potentially unethical practices. The

Fund’s ethical guidelines are publicly view-

able on our website.

The satisfaction of our personnel and cus-

tomers is important to us. We measure per-

sonnel satisfaction in an annual survey and

develop our operations based on the feed-

back received from our employees. We use

the CSAT index to measure customer satis-

faction with the customer service of adult

educationbenefitsandunemployment

insurance contributions and use the results

to continuously develop our services. We

are also working to make our operations

moreefficientbyincreasingautomationin

our processes, and to process adult educa-

tionbenefitsandunemploymentinsurance

contributionsaccuratelyandefficientlyso

that the need to appeal against our deci-

sions can be minimised.

Sustainability

48Report of the Board of Directors 2025

Wemeasurethetransparency,efficiencyandpromotionofresponsibleoperationsoftheFundwiththefollowingindicators:

Indicator Target level Level in 2025 Level in 2024

Shareofautomateddecisionsofdecisionsonadulteducationbenefits

(paymentapplicationsandscholarshipsforqualifiedemployees*)

89% (payment applications),

0%(scholarshipsforqualified

employees)

89% (payment applications),

42%(scholarshipsforqualified

employees)

Share of automated decisions of decisions on unemployment

insurance contributions 99% 99%

Personnel satisfaction (eNPS) At least +10 -7 -18

Customersatisfaction(CSAT,benefitservices) More than 80% 91% 91%

Customer satisfaction (CSAT, unemployment insurance contributions) More than 80% 83% 77%

Number of decisions changed in SAMU** and Insurance Court as

shareofalldecisionsmade(decisionsonscholarshipsforqualified

employees and adult education allowance) 0/85,603 8/229,747

Number of decisions changed in SAMU** and Insurance Court as

share of all decisions made (decisions on unemployment insurance

contributions) 0/484,258 0/500,547

Number of data breaches and incidents (breaches reported to the

Finnish Data Protection Ombudsman) Declining trend

5 data breaches and 22 data

protection incidents

16 data breaches and 22 data

protection incidents

Number of reports received in the whistleblower channel 4 reports 7 reports

Results of the Trust & Reputation survey

(overall score for the most recent survey and the survey preceding it

and the years when these surveys were carried out. Scale 1–5).

Increasing trend of

the overall score by

stakeholder

No Trust & Reputation survey was

carried out in 2025

policy makers 3.99,

educational institutions 3.77,

general public 3.37,

media 3.12

*Automatedprocessingofthescholarshipsforqualifiedemployeeswasshutdownin2024,and

for this reason, there were no automated scholarship decisions in 2025.

**Social Security Appeal Board

Sustainability

49Report of the Board of Directors 2025

More efficient, transparent

and responsible actor

To ensure our service capacity, we use

process automation in the processing of

adulteducationbenefits.In2025,automated

payment decisions accounted for 89% (89%)

of all payment decisions. Automated de-

cisions accounted for 0% (42%) of all deci-

sionsonscholarshipsforqualifiedemploy-

ees made in 2025. Automated processing

ofthescholarshipsforqualifiedemployees

was shut down in 2024 due to the aboli-

tion of the scholarship, and for this reason,

there were no automated decisions in 2025.

We also make extensive use of automated

decision-making when determining unem-

ployment insurance contributions. In 2025,

automated decisions accounted for about

99% (99%) of all decisions on unemployment

insurance contributions.

We use annual surveys to monitor person-

nel experience and develop our operations

based on the feedback received from our

employees. The eNPS is one of the tools we

use to monitor job satisfaction. It describes

how likely it is that employees would

recommend the workplace to others. The

scale of eNPS is between -100 and +100. The

higher the score, the higher the probability

that the respondents would recommend

the workplace to others. In 2025, the Fund’s

eNPS was -7 (-18). In recent years, the score

has been affected by the protracted change

situation arising from the abolition of adult

educationbenefits.

Customersatisfactionwithourbenefit

services was at an excellent level through-

out the year. The customer satisfaction

index (CSAT) indicating the percentage of

satisfiedorhighlysatisfiedcustomersofall

adulteducationbenefitcustomers)reached

91% (91%) for the year as a whole. The share

ofcustomerssatisfiedorhighlysatisfied

with unemployment insurance contribution

services reached 83% (77%).

Customersnotsatisfiedwiththedecisions

onscholarshipsforqualifiedemployees,

adult education allowance or unemploy-

ment insurance contributions have the

right to appeal against the decision. The

firstappellatebodyistheSocialSecurity

AppealBoard(SAMU).Thesecondandfinal

appellate body is the Insurance Court. We

measure the quality and effectiveness of

our decisions by how many of our decisions

will change in SAMU or the Insurance

Court. The lower the number of changes

made to our decisions, the higher their qual-

ity and there is no need to use additional

resources for decisions that have already

been made once. In 2025, a total of 89 (217)

appeals concerning adult education ben-

efitsweresubmittedtoSAMUand23(17)

to the Insurance Court. No cases of unem-

ployment insurance contributions were

submitted to SAMU or the Insurance Court

in 2024 or 2025. None of the appeals con-

cerningadulteducationbenefitssubmitted

to SAMU and the Insurance Court in 2025

were accepted.

In 2025, Employment Fund submitted a

total of 5 (16) reports of data breaches to the

OfficeoftheDataProtectionOmbudsman.

A data breach is reported to the data protec-

tion authority if it is estimated that it may

pose a risk to the rights and freedoms of

natural persons. A total of 22 (22) other data

protection incidents were recorded during

the year.

Sustainability

50Report of the Board of Directors 2025

Employment Fund’s compliance function

is responsible for the whistleblower chan-

nel. On the channel, you can also report

suspected violations and misconduct

anonymously. The whistleblower channel

received 4 (7) reports in 2025. The reports

were processed and investigated in accord-

ance with our operating principles.

The reputation of Employment Fund in the

following four stakeholder groups was last

examined in 2024: policy makers, educa-

tional institutions, general public and the

media. T-Media’s Trust & Reputation tool

was used as the research method. In this

tool, respondents react to statements from

theperspectiveofadministration,financ-

es, management, innovations, interaction,

products and services, the workplace and

sustainability. In 2024, on a scale of 1 to 5,

the overall score of the Fund among policy

makers was 3.99 (3.66), educational insti-

tutions 3.77 (2020: 3.52), general public 3.37

(3.34), and the media 3.12 (2021: 3.65). No

Trust & Reputation survey was carried out

in 2025.

During 2025, we developed activities related

to the principles of good governance and

compliance. At the end of 2025, all Fund

employees had completed the training

covering our ethical guidelines. We actively

monitored legislative changes and pub-

lished a new online training package for

all Fund employees on regulation that is

particularly relevant to Employment Fund.

We also conducted a survey on the ethi-

cal activities of Employment Fund for our

personnel and arranged discussion events

on the results of the survey for each service

area.

We monitor employers’ compliance with

their obligation to pay unemployment in-

surance contributions, which helps to com-

bat the grey economy. The purpose of the

supervision is to ensure that the earnings

payment data reported by the employers

as a basis for the unemployment insurance

contributions correspond to the actual wage

and salary payments and that the correct

amounts of unemployment insurance con-

tributions are collected.

Sustainability

51Report of the Board of Directors 2025

Last year, we worked in close cooperation

with the Finnish Tax Administration, the

Ministry of Economic Affairs and Employ-

ment and other public actors to combat the

grey economy. We also participated in the

financingofthePalkka.fipayrollprogram.

Palkka.fiisafreepayrollprogramforsmall

employers maintained by the Finnish Tax

Administration, employment pension in-

surance companies and Employment Fund.

Providing access to the program facilitates

the proper payment of wages and salaries.

We also support the combating of the grey

economy by regularly disclosing the de-

tails of our lobbying activities targeting

ministries and Parliament to the Finnish

Transparency Register. The aim of the

Finnish Transparency Register is to make

decision-making more transparent, com-

bat inappropriate lobbying and strengthen

citizens’ trust in central government and

democracy.

FRAMEWORK FOR SOCIAL FUNDING

The Fund has a framework for social

funding. The framework was prepared in

accordance with the social bond princi-

ples of the International Capital Market

Association (ICMA) updated in 2021 and the

social loan principles of the European Loan

Market Association (LMA) updated in 2023.

Within the framework, the Fund is able to

use a variety of different funding instru-

ments to promote social improvements

withdebtfinancing.

It also enables us to establish a close link

betweenourdebtfinancingandpositiveso-

cial impacts. Using the framework, we can

also promote ‘Quality education’ and ‘Decent

work and economic growth’, two of the UN

sustainable development goals selected by

the Fund for its sustainability work. The

financingtakenoutinthismannerwillbe

used to cover the expenses that meet the el-

igibility criteria (provide security for chang-

es in working life). Such expenses include

thefinancingofunemploymentsecurity.

At the end of 2025, Employment Fund did

nothaveanydebtfinancingtowhichthe

social funding framework would have been

applied.

Sustainability

52Report of the Board of Directors 2025

SUSTAINABLE INVESTMENT

Sustainable investment means that when

we make investment decisions, we take

environmental, social and governance

(ESG) factors into consideration in addition

tofinancialindicators.Withtheexception

of index investments, we integrate ESG

factors into all our investments insofar as

is possible. An external party reviews our

investments twice a year and reports any

deviations.

We exclude companies whose operating

methods are considered irresponsible with

regard to factors such as corruption, child

labour, employees’ rights and human rights

from our list of potential investments. We

invest in companies that comply with the

UN Global Compact wherever possible.

Numerical methods of assessment are used

to monitor and analyse the sustainability of

Employment Fund’s investments. The goal

is to provide a picture of the Fund’s sustain-

abilityprofileandmapitsdevelopmentas

comprehensively and diversely as possible.

Similar metrics have been used for moni-

toring since 2019. The sustainability analy-

sis includes a review of operational sustain-

ability metrics for the investment items and

the companies behind them such as com-

mitment to equality, good governance, and

the development of variables used to meas-

ure environmental impact. The assessment

is based on SFDR and MiFID II regulation

and EU taxonomy. According to the latest

sustainability assessment, our investments

meet most of the ESG criteria.

The ESG analysis of Employment Fund’s in-

vestments covers 63.7% (68%) of the Fund’s

investments, cash and cash equivalents.

The analysed assets do not include such

items as investments, cash and cash equiv-

alents in government bonds.

Sustainability

53Report of the Board of Directors 2025

According to an analysis assessing the sus-

tainability of our investments in December

2025 conducted by an asset management

institution, of the environmental indica-

tors of our investment portfolio, relative

carbon emissions (weighted carbon in-

tensity) have remained more or less at the

same level as in the analysis carried out in

December 2024. Since 2019, we have man-

aged to halve the relative carbon emissions

of our investment portfolio, and based on

the estimate of December 2025, the carbon

footprint of our investments remains signif-

icantly lower than the benchmark index. A

total of 80% (82%) of our fund investments

are investments promoting sustainability

factors (in funds meeting the requirements

of Article 8 of SFDR), and 16% (13%) are

investments meeting the requirements of

Article 9 of SFDR (in funds for sustainable

investments). A total of 88% (88%) of our in-

vestments have at least ambitious goals in

climate work and emission reductions.

A total of 73% (79%) of our investments are

estimated to have a positive impact on the

sustainable development goals of the UN.

There were no major changes in the trends

in indicators related to social factors of our

investments (gender equality, independent

governance and equal pay) compared to the

situation at the end of 2024. At the portfo-

liolevel,however,themeasuredfindings

show that the entire portfolio is in line

with the benchmark index. There are no

non-compliantcompanies(asclassified

by ISS) in the direct investments made by

Employment Fund. About 0.31% (0.2%) of

the Fund’s investments have been directed

at such companies as part of index fund

investments.

Sustainability

54Report of the Board of Directors 2025

Risk management

Risk management is an

essential part of Employment

Fund’s internal control. It aims

to strengthen risk awareness

in decision-making and to

support the achievement of the

Fund’s strategic and operational

objectives. Risk management

produces high-quality and

systematic information on

the risks and threats facing

the Fund and provides

recommendations for measures

to prevent and manage them.

WE USE EXTENSIVE RISK

MANAGEMENT TO ENSURE THE

CONTINUITY OF OUR ACTIVITIES

We monitor and manage such risks as

strategic and operational risks, regulatory,

economicandfinancialrisksaswellas

risks arising from our operating environ-

ment. Comprehensive risk management is

an important part of our activities.

Identifying strategic-level risks and manag-

ing them on a systemic basis help the Fund

to achieve its goals within the framework

ofaspecificriskappetitelevel.In2025,we

updated the list of strategic risks in accord-

ance with the annual assessment process.

The purpose of operational risk manage-

ment is to safeguard the continuity of our

key functions and statutory activities and to

ensure that the Fund can also operate dur-

ing emergencies. We took a more thorough

look at cyber risk management and devel-

oped our threat modelling to better respond

to cyber threats. During the year, we also

updated our IT capabilities to a new level,

which enhanced our digital reliability.

By managing regulatory risks, we can en-

sure that Employment Fund acts in compli-

ance with the law and other requirements

and in an ethical and responsible manner.

Active monitoring of legislative changes

is a key part of this process. Employment

Fund’s compliance function focuses on

these areas. We also actively monitor the

developments in information security reg-

ulation and developed our data protection

processes.

Tomanagefinancialrisksarisingfrom

changes in the operating environment, we

rely on such means as diverse forecasting

methods and timely adjustments of un-

employment insurance contributions for

one calendar year at a time. To safeguard

our liquidity, we make low-risk invest-

ments and strive to secure good borrowing

55Report of the Board of Directors 2025 Risk management

possibilities. Employment Fund also has a

statutory business cycle buffer to support

liquidity and reduce the need for changes

in the level of unemployment insurance

contributionsduetocyclicalfluctuations.

Financial risk management at Employment

Fund has relied on the same principles as

before. The principles and the most signif-

icantrisksarepresentedinthenotesonfi-

nancial risks. There were no major changes

in risk levels or uncertainty factors during

the review period.

Personnel play a key role in risk manage-

ment. Staff members participate actively

in risk management by identifying risks in

their own work. Risk management train-

ing is mandatory for all employees, and it

supports competence and strengthens risk

awareness throughout the organisation.

The Head of Risk Management supports

theorganisationinriskidentificationand

reports on the situational picture of risks to

the Fund’s Management Group, Audit Com-

mittee and the Board of Directors.

COMPLIANCE FUNCTION SUPPORTS

AND ENSURES COMPLIANCE

WITH REGULATIONS

In addition to risk management, internal

control and the second line of defence of

Employment Fund also includes a compli-

ance function. The Fund’s Board of Direc-

tors has approved the principles of the func-

tion,andtheComplianceOfficerregularly

reports to the Managing Director, the Audit

Committee and the Board of Directors.

The purpose of the function is to ensure

that Employment Fund complies with

existing regulation, external instructions

binding on the Fund and the Fund’s own

internal guidelines. Compliance function

identifiesandassessesrisksarisingfrom

non-compliance in close cooperation with

risk management and business operations.

The function also supports business opera-

tions in monitoring the regulatory environ-

ment. Compliance is supported by a com-

pliance network consisting of the Fund’s

lawyers. Compliance promotes adherence

to ethical and responsible practices, for ex-

ample by providing guidelines and training

for persons working at Employment Fund.

An ethical survey intended for all staff

members of Employment Fund was carried

out in 2025. The survey included a number

of different claims concerning the respond-

ent’s own work and the work of other

employees observed by the respondent. The

responses indicate that the Fund’s ethical

guidelines and the whistleblower channel

are well known. According to the survey,

in overall terms, the Fund has high ethical

standards. Compliance arranged training

events for each service area in connection

with the review of the ethical survey and

the ethical guidelines.

In addition to monitoring compliance, the

ComplianceOfficeralsoactsastheperson

responsible for insider issues of the Fund,

maintains a register of related parties and

providesassistanceindisqualificationmat-

ters. Employment Fund’s compliance func-

tion is also responsible for the whistleblow-

er channel. On the channel, you can also

report suspected violations and misconduct

anonymously. All whistleblower reports

received were processed and examined in

accordance with our operating principles.

56Report of the Board of Directors 2025

At the end of 2025, Employment

Fund had 124 (139) employees.

In person-years, the number of

personnel was 120 (130).

We paid a total of EUR 9.8 (10.9) million in

wages,salariesandfringebenefitsduring

2025. Our pay system is based on the com-

plexity of work, and we also use a bonus

system supporting the achievement of our

strategic objectives.

Men accounted for 52 (54) and women for

72 (85) of the personnel. The average em-

ployee age was 44.8 (44.2) years, and the

average duration of employment at Em-

ployment Fund was 7.4 (7.0) years. In 2025,

voluntary staff turnover was 10.37% (10.23%)

and sick leave rate 2.80% (2.85%).

100

120

140

160

180

200

persons

6/2024

*We now use the whole month as the review period

when reporting the number of personnel. Until now,

we have given the figure for the last day of the month.

Number of personnel (HC)

2024–2025*

139

12/2024

6/2025

12/2025

179

124

133

Age and gender distribution

of personnel

20–29

years

30–39

years

40–49

years

50–59

years

60–65

years

Women Men

10%

15%

14%

17%

13%

16%

Personnel

57Report of the Board of Directors 2025

CHANGES IN THE MANAGEMENT GROUP

In February, Janne Metsämäki who had

served as the Managing Director of the

Fund and its predecessors for 11 years

announced that he would retire on 31 De-

cember 2025. The Fund’s Board of Directors

chose Karo Nukarinen, the Fund’s Chief Fi-

nancialOfficer,ashissuccessor.Hestarted

as Managing Director on 1 January 2026.

Karo Nukarinen is temporarily responsible

fortheFund’sfinancialoperationsaspartof

his current role until the Fund has appoint-

edanewChiefFinancialOfficer.Tuulikki

Saari, the Fund’s Customer Relations Direc-

tor, was chosen as the Deputy Managing

Director from 1 January 2026.

Personnel

Virpi Halme, Director, Technology and De-

velopment, and Katja Knaapila, Director, HR

and Communication, left the Fund during

thefirsthalfoftheyear.TheFund’sBoard

of Directors appointed the Fund’s Head

of PMO Antti Lähde as the new Director,

Technology and Development. He started

in his new position on 25 March. The HR

andCommunicationserviceareawasfirst

managed temporarily by the Management

Group, and at the end of the year, this ar-

rangement was put on a permanent basis.

In the same connection, the HR and Com-

munication service area was abolished.

WE ARE BUILDING DIGITAL SERVICES OF

THE FUTURE WITH OUR PERSONNEL

We continued to strengthen Employment

Fund’s IT capabilities during 2025. Towards

theendof2025,wereachedasignificant

milestone as we completed an extensive

IT project, in which we transferred our IT

services to a new supplier and built new

platform capabilities. The IT capability

projecthasbeenoneofourmostsignificant

strategic investments in recent years, and

as a result of the work carried out on the

project, the Fund now has an up-to-date IT

base, which will create better opportunities

for developing digital services.

58Report of the Board of Directors 2025

The impacts of the IT capability project

arereflectedinthedailyroutinesofthe

personnel, and the aim has been to ensure

that our staff members have user-friendly,

secure and reliable solutions that support

the development of both individuals and

the organisation. Strengthening person-

nel competence has been a key part of the

project, and in autumn 2025, we provided

all staff members with cloud training, the

aim of which was to increase basic under-

standingofthebenefitsofcloudtechnolo-

gies and their impacts on the development

of services.

Theutilisationofartificialintelligencealso

played a key role in the development of

personnel competence in 2025. During the

year,wespecifiedtheguidelinesfortheuse

ofartificialintelligenceandtheprinciples

of responsible AI use.

Before introducing the selected AI tools,

staff members are required to complete

internal training on AI principles, use and

responsibility. In autumn 2025, we also

provided the entire personnel with training,

which deepened their expertise in the use

ofartificialintelligence.Withthetraining,

we ensured that our personnel have the

capacity to critically assess the information

producedbyartificialintelligence,useAI

tools appropriately and responsibly, and act

in a manner that ensures data protection

and information security in all situations.

TRANSITION PERIOD FOR ADULT

EDUCATION BENEFITS ENDED

The act abolishing the adult education ben-

efitsenteredintoforceon1June2024and

the transition period for adult education

allowance ended on 31 December 2025. The

legislativeamendmenthadasignificant

impact on the activities of the service areas

providingbenefitservicesandsupport

functions as well as on human resources al-

ready during the transition period. In 2025,

benefitserviceswereonlyprovidedbya

single team.

The exceptionally long transition period

made the change a demanding experience

for all parties, and for this reason we invest-

ed in participatory change management

throughout the process. The impacts of

the change were monitored with regular

experience measurements, which allowed

us to target support measures and com-

munications according to the needs of the

personnel.

Personnel

59Report of the Board of Directors 2025

DEVELOPING EMPLOYEE EXPERIENCE

AND MANAGEMENT PRACTICES

We monitored the employee experience

with a personnel survey carried out in the

spring and with two follow-up pulse sur-

veys conducted in the autumn. The eNPS

of the most recent pulse survey (value

can range from -100 to 100) was -7, which

represents an improvement to previous

years (2024: -18, 2023: -26). However, the

prolonged change situation arising from

theabolitionoftheadulteducationbenefits

isstillreflectedintheresultsofpersonnel

surveys and in the eNPS results.

As we aimed for an excellent employee

experience, our focus was on develop-

ing supervisory work during 2025. In the

spring, we updated the Fund’s management

principles, and based on them, we assessed

supervisors with 270 degree feedback. The

overall score was 4.58/5. The development

priorities arising from the assessment will

also guide management development in

2026.

STRENGTHENING IDENTITY

AND CAPABILITIES

We continued the identity work began in

autumn 2024 throughout the year 2025. We

deepened the organisation’s understanding

of Employment Fund’s identity by providing

individual teams with an opportunity to

process different areas of identity. In the

future, the identity matrix will serve as a

key tool for instilling management princi-

ples and developing communication capa-

bilities in the Fund.

Towards the end of the year, the Manage-

ment Group outlined the priorities for devel-

oping communication capabilities for the

period 2025–2027. The aim is to strengthen

communication skills and understanding

in each task so that the dialogue in the

work community can be strengthened and

wecanimproveproductivityandefficiency.

In order to implement communications in

accordance with the strategy, we planned

a reform of our operating practices, which

will guide our operations from the begin-

ning of 2026.

Personnel

60Report of the Board of Directors 2025

Events after the financial period

Eventsafterthefinancialperiod

NosignificantchangeshaveoccurredinEmploymentFund’sfinancialpositionaftertheendofthereviewperiod.

Helsinki 24 February 2026

Employment Fund

Board of Directors

61Report of the Board of Directors 2025

Corporate governance

The corporate governance statement of Em-

ployment Fund for 2025 has been prepared

in accordance with the Securities Market

Act and the recommendation on reporting

contained in the Finnish Corporate Govern-

ance Code for Listed Companies, which took

effect on 1 January 2025.

COMPLIANCE WITH THE FINNISH

CORPORATE GOVERNANCE CODE

2025 AND DEVIATIONS FROM

THE RECOMMENDATIONS

Employment Fund is an independent stat-

utory agency supervised by the Financial

Supervisory Authority. Employment Fund

has issued a bond quoted on Nasdaq OMX

Helsinki Ltd, which will mature in June

2027. The Fund has a commercial paper

programme of EUR 300 million (31 Dec

2024: EUR 300 million), which remained

unused at the end of 2024 and 2025. Where

applicable, Employment Fund conducts its

operations in compliance with the Finn-

ish Corporate Governance Code, which is

publicly available on the Securities Market

Association’swebsite(www.cgfinland.fi).

The operations of Employment Fund

and the responsibilities of its organs are

governed by the Act on the Financing

ofUnemploymentBenefits(555/1998),

Government Decree on the Financing

ofUnemploymentBenefits(1227/2014)

and the Decree on the Rules of Procedure

of Employment Fund (862/1998). Due to

Employment Fund’s form of activity and

background, its operations differ from the

Finnish Corporate Governance Code on the

following recommendations:

• Recommendations 1, 2, 3 and 4:

Employment Fund is not a limited

liability company and its most senior

decision-making body is not a general

meeting or similar organ as this task

is carried out by the Supervisory

Board appointed by the Government,

in accordance with the Decree on the

Rules of Procedure of Employment

Fund (862/1998). The Decree contains

provisions on matters to be decided

in the meetings of the Supervisory

Board and the related procedures as

well as the notice of the meeting. For

this reason, the recommendations

concerning the general meeting, notice

of the general meeting, proposals

for decisions, initiatives of the

shareholders, attendance at the general

meeting and documents discussed at

the general meeting are not applicable

in the operations of Employment Fund.

• Recommendations 5, 6, 7, 8 and 9:

Employment Fund’s Supervisory Board

appoints the members of the Board

of Directors in accordance with the

principles set out in the Decree on the

Rules of Procedure of Employment

Fund (862/1998). Under the Decree,

the Supervisory Board approves the

appointment of the members, chair

and vice chair of the Board of Directors

for the following calendar year. Seven

of the Board of Directors’ members

are employer representatives and

seven are employee representatives.

For this reason, the recommendations

concerning the appointment, term

62Report of the Board of Directors 2025

ofoffice,composition,diversityand

independence of the Board of Directors

members are not applicable to

Employment Fund’s operations.

• Recommendations 10 and 19:

Employment Fund’s Supervisory Board

appoints the members of the Board

of Directors in accordance with the

principles set out in the Decree on the

Rules of Procedure of Employment

Fund (862/1998). Seven of the Board

of Directors’ members represent

employers and seven are employee

representatives. Employment Fund has

no shareholders or similar owners, and

thus there is no evaluation of whether

the Board of Directors or management is

independentofsignificantshareholders.

Likewise, the recommendation

concerning the shareholders’

nomination committee is not applicable.

• Recommendations 16, 17 and 18: The

regulations governing Employment

Fund’s operations do not impose

an obligation to establish special

committees. Therefore, the Fund does

not have any committees other than the

Audit Committee. As Employment Fund

is not a limited liability company, there

is no evaluation of whether the Audit

Committee members are independent of

significantshareholders.

• Recommendation 21: Under the

Decree on the Rules of Procedure of

Employment Fund, the Supervisory

Board appoints the members and chair

of the Board of Directors. The chair is

appointed from among the Board of

Directors members (in alternating years

from among the representatives of the

employers or employees) and thus the

recommendation on the restriction

concerning the Managing Director is not

applicable.

• Recommendation 22: Under the

Decree on the Rules of Procedure of

Employment Fund, the Ministry of

Social Affairs and Health decides on

the remuneration for meetings for the

Supervisory Board members and the

principles of compensation for their

travelling expenses. The Supervisory

Board decides on the remuneration of

the Board of Directors. The Board of

Directors decides on the remuneration

and the terms and conditions of the

service contract of the Managing

Director as well as the principles of

remuneration for other management

staff.

• Recommendation 23: Employment

Fund has no shareholders or similar

owners, and thus the recommendations

concerning share awards and share-

based remuneration for the members of

the Board of Directors are not applicable.

• Recommendation 27: Employment

Fund is not a limited liability company

and thus the regulation on related-

party transactions is not applicable

to Employment Fund’s operations

within the meaning of the Finnish

Corporate Governance Code. However,

Employment Fund complies with IFRS

standards and monitors related-party

transactions as described below.

Corporate governance

63Report of the Board of Directors 2025

SUPERVISORY BOARD

Under the Decree on the Rules of Procedure

of Employment Fund (862/1998), Employ-

ment Fund’s most senior decision-making

body is the Supervisory Board, which has

between 10 and 18 members. Half of the

members represent employers and the

other half represent employees. The term

of the members of Employment Fund’s

Supervisory Board is three calendar years.

On 2 November 2023, on the proposal of

the Ministry of Social Affairs and Health,

the Government appointed the members

of Employment Fund’s Supervisory Board

for the term 1 January 2024–31 December

2026. A total of 18 members were appointed

to the Supervisory Board. Six of the mem-

bers were appointed on the proposal of the

Confederation of Finnish Industries (EK),

three on the proposal of the Local Govern-

ment and County Employers (KT), three on

the proposal of the Central Organisation

of Finnish Trade Unions (SAK), three on

the proposal of the Finnish Confederation

of Professionals (STTK) and three on the

proposal of the Confederation of Unions

for Professional and Managerial Staff in

Finland (Akava). The proposed composi-

tion was in accordance with section 4a,

subsection 2 of the Act on Equality between

Women and Men. In 2024, the Government

appointed two new and in 2025 three new

Supervisory Board members for the rest of

the current term (until 31 December 2026).

The Supervisory Board elects from among

its members a chair and a vice chair for

one calendar year at a time, one of whom is

an employer representative and the other

one an employee representative. The chair-

manship is held in turn by representatives

of employers and employees, alternating

annually. In 2025, the Supervisory Board

was chaired by Millariikka Rytkönen, who

represented employees.

At its autumn meeting, the Supervisory

Board elected Antti Zitting as chair for 2026

from among its members.

Corporate governance

64Report of the Board of Directors 2025

Meeting practice and access to information

The ordinary meeting of the Supervisory

Board is held twice a year, in the spring

before the end of May and in the autumn

no later than in October. Matters referred to

in the Decree on the Rules of Procedure of

Employment Fund (862/1998) are discussed

at the meetings of the Supervisory Board.

An additional meeting of the Supervisory

Board is held whenever the chair of the

Supervisory Board or the Board of Directors

deems it necessary, or when at least two

members of the Supervisory Board request

in writing that an additional meeting be

heldforareasonspecifiedintherequest.

The notice of the meeting must be delivered

inaverifiablemannertothemembersof

the Supervisory Board no later than eight

days before the meeting. The meeting of

the Supervisory Board constitutes a quo-

rum when the chair or the vice chair and

at least half of the members are present.

Those present must include both employer

and employee representatives. The deci-

sions of the Supervisory Board are based on

a simple majority. In the event of a tie, the

decision is based on the opinion supported

by the chair of the meeting. In the event of

an election in which the voting ends in a

tie, the result is decided by drawing lots. If

the question concerns a proposal for unem-

ployment insurance contributions and the

voting ends in a tie, the opinion supported

by both the chair and the vice chair be-

comes the decision.

The Supervisory Board elects from among

its members a chair and a vice chair of the

Supervisory Board for one calendar year at

a time. One of them must be an employer

representative and the other one an em-

ployee representative. The chairmanship is

held in turn by representatives of employers

and employees, alternating annually. The

SupervisoryBoardmetfivetimesin2025.

Three of the meetings were held via email.

No separate remuneration is paid for meet-

ings held via email.

Corporate governance

65Report of the Board of Directors 2025

The members of the Supervisory Board in 2025 were:

Name

Year of

birth Education Main occupation

Attendance at

meetings of the

Supervisory Board

Millariikka Rytkönen, f, chair 1975

Midwife, Bachelor’s Degree,

Nursing, Master’s Degree

Chair,

Union of Health and Social Care Professionals in Finland (Tehy) 5/5

Antti Zitting, vice chair 1956 Master of Science (Technology) Board chair, Sacotec Oy 5/5

Riku Aalto, m 1965 Master of Administrative Sciences President, Industrial Union 3/5

Maria Kaisa Aula, f 1962 Lic.Soc.Sc., D.Soc.Sc.

Chair of the County Executive,

Central Finland Wellbeing Services County 5/5

Nina Brask, f 1972 Fitness nurse (kuntohoitaja)

Chair of the County Executive,

Kymenlaakso Wellbeing Services County 5/5

Päivi Inberg, f 1972 Nurse (perushoitaja) Chair, Finnish Union of Practical Nurses (SuPer) 5/5

Jari Jokinen, m 1967 Master of Science (Technology)

ChiefExecutiveOfficer,

Finnish Association of Graduate Engineers and Architects (TEK) 5/5

Teemu Kokko, m 1961 Doctor of Science (Business Administration) President, CEO, Haaga-Helia University of Applied Sciences 5/5

Antti Korpiniemi 1961 Master of Agriculture and Forestry Sciences CEO, Berner Ltd 4/5

Tomi Lantto, m 1970 Master of Economic Sciences CEO, Antell Oy 5/5

Petri Lindroos, (Member until

30 January 2025) 1965 Master of Education

Director of Negotiations,

Trade Union of Education in Finland (OAJ) 0/0

Salla Luomanmäki, (Member

until 30 January 2025) 1963 Master of Arts

Board member, Confederation of Unions for Professional and

Managerial Staff in Finland (Akava), Akava representative 0/0

Jorma Malinen, (Member until

30 January 2025) 1959 Automation Designer President, Trade Union Pro 0/0

Matti Mettälä, m 1963 Master of Laws trained on the bench EVP, Kesko Corporation 5/5

Katarina Murto, f, (Member

from 30 January 2025) 1971

Lecturer in Dance, Master of Laws trained

on the bench President, Trade Union of Education in Finland (OAJ) 4/5

Outi Mäkelä 1974 Master of Economic Sciences Municipal Manager, Nurmijärvi 5/5

Olli Nikula, m 1967 Master of Economic Sciences CEO, Dahl Finland Oy 5/5

Saila Ruuth, f 1981 Master of Political Science

Vice President,

Trade Union for the Public and Welfare Sectors (JHL) 5/5

Annika Rönni-Sällinen, f 1976 Master of Laws President, Service Union United (PAM) 5/5

Samu Salo, m, (Member from 30

January 2025) 1976 Bachelor of Engineering President, Union of Professional Engineers in Finland (IL) 5/5

Niko Simola, m, (Member from

30 January 2025) 1974 Master of Laws President, Trade Union Pro 4/5

Gender (m/f) is given for persons who have provided this information.

Corporate governance

66Report of the Board of Directors 2025 Corporate governance

BOARD OF DIRECTORS

Under the Decree on the Rules of Procedure

of Employment Fund (862/1998), Employ-

ment Fund must have a Board of Directors

composed of 14 members. The members of

the Board of Directors are appointed by the

Supervisory Board and seven of the mem-

bers must be employer representatives and

seven employee representatives. The Board

of Directors must have a chair and vice

chair, one of whom must be an employer

representative and the other one an em-

ployee representative. The chairmanship is

held in turn by representatives of employers

and employees, alternating annually.

The Board of Directors constitutes a quorum

when the chair or the vice chair and at least

seven other members are present, or take

part in the meeting using a data connection

or other technical tool. Those present must

include both employer and employee rep-

resentatives. The decisions of the Board of

Directors are based on a simple majority. In

the event of a tie, the decision is based on

the opinion supported by the chair of the

meeting. If the question concerns a propos-

al for unemployment insurance contribu-

tions and the voting ends in a tie, the opin-

ion supported by both the chair and the vice

chair becomes the decision.

The Board of Directors is responsible for

Employment Fund’s administration and

the proper organisation of its operations.

The Board of Directors follows the develop-

ment of Employment Fund with the help

of monthly reports and other information

delivered by the management. The key

tasks and operating principles of Employ-

ment Fund’s Board of Directors are set out

in the Government Decree on the Rules of

Procedure of Employment Fund (862/1998)

and in the Board of Directors’ written rules

of procedure. The Board of Directors carries

out a self-assessment of its activities each

year.

67Report of the Board of Directors 2025

The members of the Board of Directors in 2025 were:

Name

Year of

birth Education Main occupation

Attendance

at meetings

of the Board

of Directors

Markku Jalonen, m,

chair until 1 March 2025 1960 Licentiate of Social Sciences

Managing Director, Local Government and

County Employers (KT) until 28 February 2025 2/2

Henrika Nybondas-Kangas, f,

chair from 1 March 2025 1974 Master of Laws trained on the bench

Director of Negotiations (until 28 February 2025), Managing Director (from 1

March 2025), Local Government and County Employers (KT) 11/12

Saana Siekkinen, f, vice chair 1972 Master of Social Sciences Director, Central Organisation of Finnish Trade Unions (SAK) 12/12

Tuomas Aarto, m 1973 Master of Laws trained on the bench CEO, Management, Service Sector Employers (PALTA) 11/12

Taina Ahvenjärvi, f 1960 Master of Laws trained on the bench Director of Infrastructure and Security, Finance Finland 11/12

Jarkko Eloranta, m,

(Member from 1 August 2025) 1966 Master of Political Science President, Central Organisation of Finnish Trade Unions (SAK) 5/5

Minna Etu-Seppälä 1972 Master of Laws trained on the bench Director, Chemical Industry Federation of Finland 11/12

Minna Helle, f,

(Member until 1 May 2025) 1972 Master of Laws CEO, Technology Industries of Finland 4/4

Ilkka Kaukoranta,

(Member until 1 August 2025) 1986 Master of Political Science Chief Economist, Central Organisation of Finnish Trade Unions (SAK) 7/7

Patrizio Lainà, m,

(Member until 27 October 2025) 1985

Doctor of Political Science, Master of

Economic Sciences Chief Economist, Finnish Confederation of Professionals (STTK) 10/10

Janne Makkula, m,

(Member from 1 May 2025) 1977 Master of Laws trained on the bench Labour Market Director, Technology Industries of Finland 8/8

Antti Palola 1959 Sea Captain President, Finnish Confederation of Professionals (STTK) 12/12

Pekka Piispanen, m 1960 Master of Arts

Director, Confederation of Unions for Professional and

Managerial Staff in Finland (Akava) 12/12

Vesa Rantahalvari, m 1967 Master of Administrative Sciences Chief Policy Adviser, Confederation of Finnish Industries (EK) 12/12

Juho Ruskoaho, m,

(Member from 1 March 2025) 1983 Master of Political Science Chief Economist, Local Government and County Employers (KT) 10/10

Heikki Taulu, m 1973 Master of Social Sciences

Economist, Confederation of Unions for Professional and

Managerial Staff in Finland (Akava) 12/12

Pirjo Väänänen, f 1971 Master of Social Services Head of Social Affairs, Central Organisation of Finnish Trade Unions (SAK) 12/12

Gender (m/f) is given for persons who have provided this information.

Corporate governance

68Report of the Board of Directors 2025 Corporate governance

In its autumn meeting, the Supervisory

Board appointed Saana Siekkinen, repre-

senting employees, as chair of the Board of

Directors for 2026, and Vesa Rantahalvari,

representing employers, was appointed vice

chair.

In 2026, the members of Employment

Fund’s Board of Directors are as follows:

Tuomas Aarto, Taina Ahvenjärvi, Jarkko

Eloranta, Minna Etu-Seppälä, Else-Mai

Kirvesniemi, Janne Makkula, Henrika

Nybondas-Kangas, Pekka Piispanen, Vesa

Rantahalvari, Juho Ruskoaho, Saana Siek-

kinen, Heikki Taulu, Taina Vallander and

Pirjo Väänänen.

Meeting practice and access to information

The chair convenes the meeting of the

Board of Directors. The notice concerning

the meeting of the Board of Directors must

be delivered to all members in good time

before the meeting in order to ensure that

the members of the Board of Directors are

able to attend the meeting. The Board of

Directors meets 8–12 times each year and, if

necessary, more frequently. If all the mem-

bers approve, the meeting of the Board of

Directors may be held as a telephone con-

ference or via email in case of urgent and

specificmatters.

Chair’s duties

• The Supervisory Board appoints the

chair and the vice chair of the Board

of Directors for one calendar year at

a time. In 2025, the Board of Directors

was chaired by Markku Jalonen (until

1 March 2025) and Henrika Nybondas-

Kangas (from 1 March 2025). Both of

them represented employers.

Chair of the Board of Directors

• convenes the meetings of the Board of

Directors

• approves the agenda prepared by the

Managing Director for the meetings of

the Board of Directors

• is responsible for ensuring that minutes

are drafted of every meeting of the

Board of Directors

• maintains contacts with the Managing

Director and members of the Board

of Directors between meetings, as

necessary, and is responsible for

ensuring that these rules of procedure

are complied with in the work of the

Board of Directors

• approves the invoices of the Managing

Director.

69Report of the Board of Directors 2025 Corporate governance

Operations of the Board of Directors

In 2025, the Board of Directors met 12 times.

The Board of Directors also held a strategy

seminar for which no remuneration is paid.

The Board of Directors assesses its own

activities and operating practices as well

as the activities and operating practices of

the Audit Committee each year. In 2025, the

assessment was carried out as a self-as-

sessment and its results were discussed at

the Board of Directors meeting in December.

The Audit Committee discussed its own

findingsatitsNovembermeeting.

AUDIT COMMITTEE

On the basis of the rules applying to Em-

ployment Fund, the Board of Directors

does not have any permanent committees.

However, it can decide to establish work-

ing groups or committees for the purpose

of assisting the Board of Directors with the

preparation of certain matters falling with-

in the competence of the Board of Directors.

The Board of Directors has had an Audit

Committee since 2019. The members of

the Audit Committee are appointed by the

Fund’s Board of Directors from among its

members. Under the Audit Committee’s

rules of procedure, the Committee must

have at least four members, half of whom

represent employees and half represent

employers. The Audit Committee assists the

Board of Directors. The Audit Committee

has no decision-making powers but it can

submit proposals and reports to the Board

of Directors on the tasks assigned to it. The

Audit Committee is primarily responsible

forpreparingmattersrelatedtofinancialre-

porting, internal control, risk management

and the selection of auditors.

In 2025, the Audit Committee met four

times.

Audit Committee

Attendance at

meetings

Pirjo Väänänen, chair 4/4

Minna Etu-Seppälä, vice chair 4/4

Henrika Nybondas-Kangas

(Member until 1 March 2025) 1/1

Heikki Taulu 4/4

Juho Ruskoaho (Member from 1

March 2025) 3/3

MANAGING DIRECTOR

Employment Fund has a Managing Director

who is responsible for the Fund’s manage-

ment in accordance with the guidelines

and orders issued by the Board of Directors.

The Managing Director is responsible for

ensuring that Employment Fund’s accounts

are in accordance with the law and that its

financialaffairshavebeenarrangedinare-

liable manner. The Managing Director must

provide the Board of Directors and its mem-

bers with the information necessary for

the Board of Directors to perform its duties.

Janne Metsämäki, LL.M. (b. 1960) served as

Employment Fund’s Managing Director un-

til 31 December 2025. Karo Nukarinen, M.Sc.

(Econ.) (b. 1976) served as the Fund’s Deputy

Managing Director.

From 1 January 2026, Karo Nukarinen has

served as the Managing Director of Em-

ployment Fund and Master of Arts Tuulik-

ki Saari (b. 1979) as the Deputy Managing

Director.

70Report of the Board of Directors 2025

MANAGEMENT GROUP

The Management Group assists the Managing Director in the man-

agement of Employment Fund’s operations and in achieving Em-

ployment Fund’s strategic and operational goals. The Management

Group meets on a weekly basis. In 2025, the members of the Man-

agement Group were:

Name

Year of

birth

Education

Duties/

responsibilities

Janne Metsämäki 1960 Master of Laws

Managing

Director

Virpi Halme

(until 28 February 2025) 1976 Master of Laws

Director,

Technology and

Development

Katja Knaapila

(until 1 June 2025) 1966

Master of Business

Administration

Director, HR and

Communication

Antti Lähde, m,

(from 25 March 2025) 1968

BBA, Information

Technology

Director,

Technology and

Development

Karo Nukarinen, m 1976

Master of Economic

Sciences

Chief Financial

Officer

Tuulikki Saari, f 1979 Master of Arts

Director, Customer

Relations

In addition to the Management Group, the Managing Director is also

assisted in operational management by the Extended Management

Group, which in addition to the Management Group members also

hasthefollowingmembers:PaulaKuntsi-Ruuska,RiskManager;

Lotta Hietaniemi-Sipakko, Acting Communications Manager (until

January2025);TerhiSavikko-Talasrinne,CommunicationsManag-

er(fromFebruary2025);KiraKarlsson,asHRManager(fromJune

2025);Veli-MattiPeltola,HeadofPMO(fromMay2025);PekkaRäsä-

nen,CISO(untilMay2025);TeemuVälimäki,HeadofCyberSecurity

(fromJune2025);andTeemuTurpeinen,Analyst(personnelrepre-

sentative). The Extended Management Group meets each month.

The Fund’s projects are also steered and monitored by the Portfolio

Management Group.

LEGALITY AND COMPLIANCE OF OPERATIONS

Employment Fund’s operations comply with the law, the guidelines

and regulations applying to the Fund, and the requirements of good

governance.

INTERNAL CONTROL AND RISK MANAGEMENT

Employment Fund’s Board of Directors decides on the criteria for

the Fund’s internal control and risk management, approves the

Fund’s risk management principles and requires that Employment

Fund’s operations are organised so as to enable adequate internal

control and risk management across every level of the organisation

and in all its activities. The principles of Employment Fund’s inter-

nal control and risk management apply to all functions of the Fund

and each employee is responsible for implementing them.

Corporate governance

Gender (m/f) is given for persons who have provided this information.

71Report of the Board of Directors 2025

Risk management and compliance are

part of internal control. Risk management

means the systematic and proactive way

of identifying, analysing and managing

threats and opportunities arising from the

operations. The purpose of Compliance is

to ensure that Employment Fund complies

with existing regulation, external instruc-

tions binding on the Fund and the Fund’s

own internal guidelines. The focus is on

preventive activities. Employment Fund’s

internal control is based on the three lines

of defence model.

Corporate governance

Employment Fund’s internal control is based on the ‘three lines of defence’ model.

Managing Director and Management Group

Audit

and

supervisory

authorities

Board of Directors and Audit Committee

Supervisory Board

Internal

control of

operational

management

Internal

control

procedures

Risk

management

Compliance Internal audit

Line of defence

72Report of the Board of Directors 2025 Corporate governance

Internal audit

Employment Fund’s Board of Directors

decides on the operating model and criteria

for the Fund’s internal audit. The Fund’s

internal audit operates on the basis of the

plans discussed by the Audit Committee

and approved by the Board of Directors.

In 2025, the internal audit of Employment

Fund was purchased from Pricewater-

houseCoopers Oy. The Fund’s internal audit

reports on its operations to the Board of

Directors and the Audit Committee on a

regular basis.

Principles of organising

insider administration

Employment Fund has issued publicly

quoted bonds. Employment Fund complies

with the Market Abuse Regulation (MAR)

and other applicable legislation, insider

guidelines and the rules for issuers of other

instruments of Nasdaq Helsinki Ltd. Em-

ployment Fund also has insider guidelines

approved by the Board of Directors, which

describe the most important principles

governing the insider matters of Employ-

ment Fund.

In accordance with MAR requirements,

Employment Fund maintains a list of

persons in management positions and

their related parties. The members of the

Supervisory Board, members of the Board

of Directors, the Managing Director and the

ChiefFinancialOfficerhavebeendefined

by Employment Fund as persons holding

management positions. A person holding a

management position in Employment Fund

may not, directly or indirectly, trade with an

EmploymentFund’sfinancialinstrument

for their own account or for the account of

a third party during a closed period, regard-

less of whether the person in question has

inside information at that time.

For the duration of the closed period, Em-

ployment Fund also imposes trading re-

strictionsonallseparatelydefinedpersons

participating in the preparation of Employ-

mentFund’sinterimfinancialreportand

financialstatementrelease.Theclosed

period lasts for 30 days before the publi-

cationofthestatutoryinterimfinancial

reportorthefinancialstatementrelease,

including the date of the publication. Em-

ployment Fund has also decided to volun-

tary comply with the 30-day closed period

policy (i) before the publication in spring of

the estimate of unemployment insurance

contributions for the following year pre-

sented to the Ministry of Social Affairs and

Health;(ii)beforethepublicationinAu-

gust of the proposal of Employment Fund’s

Board of Directors to the Supervisory Board

for the level of the unemployment insur-

ancecontributionsforthefollowingyear;

and (iii) before the publication in August

of the budget and the Supervisory Board’s

proposal for the amounts of unemployment

insurance contributions for the following

year. This is because Employment Fund’s

future developments are assessed in these

documents.

Employment Fund establishes an insider

list for each individual project, in which the

details of the persons with access to that

73Report of the Board of Directors 2025 Corporate governance

particular insider information is entered

(project-specificinsiderlists).Employment

Fund does not maintain the insider list’s

supplementary section listing permanent

insidersasonlytheproject-specificlists

are used. Employment Fund has a person

responsible for insider issues who carries

out the duties of Employment Fund’s in-

sider administration. Employment Fund

has a procedure by which one can report a

suspectedbreachoffinancialmarketprovi-

sions and regulations through an independ-

ent channel. Employment Fund’s anony-

mous whistleblower channel serves as the

Fund’s reporting channel and it is accessi-

ble on Employment Fund’s internal intranet

website and on its public website.

Principles concerning related parties

The regulations on related-party trans-

actions set out in the Limited Liability

Companies Act are not applicable to Em-

ployment Fund’s operations. However, the

Fund complies with the framework of the

IFRS standards and guidelines regarding

related-partytransactions(IAS24).The

following parties are considered as relat-

ed parties of Employment Fund: members

and deputy members of the Board of Direc-

tors and the Supervisory Board, Managing

Director, Deputy Managing Director and

the members of the Management Group

as well as the family members or other

close relatives of the above persons or the

organisations controlled by them. Trans-

actions involving related parties are han-

dled in accordance with the guidelines on

related-party transactions approved by the

Board of Directors. The list of related parties

is maintained by Employment Fund’s Com-

plianceOfficer.

AUDITOR AND AUDITOR’S FEES

Employment Fund’s Supervisory Board

appointed KPMG Oy as the Fund’s auditor

for 2025. Marcus Tötterman, Authorised

Public Accountant, KHT, acted as the main

auditor until 10 April 2025. The Supervisory

Board appointed Juha-Pekka Mylén (KP-

MG) as the main auditor of the Fund from 10

April 2025. He replaced Marcus Tötterman

who had reached the end of his maximum

term as auditor. The auditor’s fees for 2025

comprise EUR 101,286 in audit-related costs

paid to KPMG Oy and EUR 0 paid for other

services.

74Report of the Board of Directors 2025 Remuneration report

Remuneration report

Employment Fund is not a limited liabil-

ity company and thus the regulations on

remuneration principles and reporting are

not directly applicable to the Fund’s opera-

tions. Therefore, Employment Fund’s remu-

neration report for 2025 has been drawn

up, where applicable for Employment Fund,

in compliance with the Finnish Corporate

GovernanceCode2025(www.cgfinland.

fi),publishedbytheSecuritiesMarket

Association.

FEES AND OTHER BENEFITS PAID TO THE

MEMBERS OF THE SUPERVISORY BOARD

On 29 November 2023, on the proposal of

the labour market parties, the Government

appointed the members of Employment

Fund’s Supervisory Board for the term 1

January 2024–31 December 2026. In 2024,

the Government appointed two new and in

2025 three new Supervisory Board mem-

bers for the rest of the current term (until 31

December 2026).

The Ministry of Social Affairs and Health

decides on the remuneration for meetings

for the Supervisory Board and the principles

of compensation for travelling expenses.

On 29 November 2023, the Ministry of

Social Affairs and Health decided that the

fees for the members of the Supervisory

Board are as follows: for the chair, EUR 330

per month and EUR 440 per meeting, for

the vice chair and other members, EUR 330

per meeting. In 2025, the Supervisory Board

metfivetimes.Threeofthemeetingswere

held via email. No separate remuneration

was paid for the meetings held via email.

75Report of the Board of Directors 2025

In 2025, the fees for the members of the Supervisory Board were paid as follows:

Meeting fee of the

Supervisory Board

members

Monthly fee of the

Supervisory Board

chair Travelling expenses

Total,

31 Dec 2025

Attendance at meetings

of the Supervisory Board

Millariikka Rytkönen, chair 880 3,960 4,840 5/5

Antti Zitting, vice chair 660 0 118 778 5/5

Riku Aalto 0 0 0 3/5

Maria Kaisa Aula 660 0 660 5/5

Nina Brask 660 0 660 5/5

Päivi Inberg 660 0 660 5/5

Jari Jokinen 660 0 660 5/5

Teemu Kokko 660 0 660 5/5

Antti Korpiniemi 330 0 330 4/5

Tomi Lantto 660 0 660 5/5

Petri Lindroos (Member until 30 January 2025) 0 0 0 0/0

Salla Luomanmäki (Member until 30 January 2025) 0 0 0 0/0

Jorma Malinen (Member until 30 January 2025) 0 0 0 0/0

Matti Mettälä 660 0 660 5/5

Katarina Murto (Member from 30 January 2025) 330 0 330 4/5

Outi Mäkelä 660 0 660 5/5

Olli Nikula 660 0 660 5/5

Saila Ruuth 660 0 660 5/5

Annika Rönni-Sällinen 660 0 660 5/5

Samu Salo (Member from 30 January 2025) 660 0 660 5/5

Niko Simola (Member from 30 January 2025) 330 0 330 4/5

Total 10,450 3,960 118 14,528

Remuneration report

76Report of the Board of Directors 2025

FEES AND OTHER BENEFITS PAID TO THE

MEMBERS OF THE BOARD OF DIRECTORS

The Supervisory Board decides on the remuneration of the

Board of Directors. On 29 August 2024, the Supervisory Board

decided that no changes would be made to the remunera-

tions of the Board of Directors members for 2025. Members

of the Board of Directors are paid remunerations on the fol-

lowing grounds:

Task

Fee EUR

per month

Fee EUR

per meeting

ChairoftheBoardofDirectors 1,100 440

Vice chair of the Board of

Directors 870 330

Other members of the Board of

Directors 550 275

No other remuneration or supplementary pension arrange-

ments are in place for the members of the Board of Directors.

In 2025, the Board of Directors met 12 times. The Board of

Directors also held one strategy meeting, for which no remu-

neration is paid.

In 2025, the fees paid to the members of the Board of

Directors were as follows:

Name

Annual

fees of the

Board of

Directors

Meeting

fees of the

Board of

Directors

Total,

31 Dec 2025

Attendance at

meetings of

the Board of

Directors

Markku Jalonen, chair until 1 March 2025

2,200 880

3,080

2/2

Henrika Nybondas-Kangas, chair from 1

March 2025

12,100 4,675

16,775

11/12

Saana Siekkinen, vice chair

10,440 3,960

14,400

12/12

Tuomas Aarto

6,600 3,025

9,625

11/12

Taina Ahvenjärvi

6,600 3,025

9,625

11/12

Jarkko Eloranta (Member from 1 August

2025)

2,750 1,375

4,125

5/5

Minna Etu-Seppälä

6,600 3,025

9,625

11/12

Minna Helle (Member until 1 May 2025)

2,200 1,100

3,300

4/4

Ilkka Kaukoranta (Member until 1 August

2025)

3,850 1,925

5,775

7/7

Patrizio Lainà (Member until 27 October

2025)

4,950 2,750

7,700

10/10

Janne Makkula (Member from 1 May 2025)

4,400 2,200

6,600

8/8

Antti Palola

6,600 3,300

9,900

12/12

Pekka Piispanen

6,600 3,300

9,900

12/12

Vesa Rantahalvari

6,600 3,300

9,900

12/12

Juho Ruskoaho (Member from 1 March

2025)

5,500 2,750

8,250

10/10

Heikki Taulu

6,600 3,300

9,900

12/12

Pirjo Väänänen

6,600 3,300

9,900

12/12

Total 101,190 47,190 148,380

Remuneration report

77Report of the Board of Directors 2025

The Supervisory Board decides on the fees paid to the members

of the Audit Committee. The fees for the Audit Committee were

EUR440permeetingforthechairandEUR275permeetingforthe

members of the committee. In 2025, the Audit Committee met four

times.

In 2025, the fees paid to the members of the Audit Committee were

as follows:

Name

Meeting fees

for the Audit

Committee

Total,

31 Dec 2025

Attendance at Audit

Committee meetings

Pirjo Väänänen, chair 1,760 1,760 4/4

Minna Etu-Seppälä,

vice chair 1,100 1,100 4/4

Henrika Nybondas-

Kangas (Member until

1 March 2025) 275 275 1/1

Juho Ruskoaho

(Member from 1 March

2025) 825 825 3/3

Heikki Taulu 1,100 1,100 4/4

Total 5,060 5,060

REMUNERATION OF ORGANS AND PERSONNEL

The remuneration of the members of the Supervisory Board and

the Board of Directors of Employment Fund as well as the Manag-

ing Director and staff members have developed as follows during

thepastfivefinancialperiods:

2021 2022 2023 2024 2025

Supervisory Board

Chair of the Supervisory

Board 4,700

4,738

4,540 5,508 4,840

Vice chair of the Supervisory

Board 944

620

726 990 778

Member of the Supervisory

Board

825

410

567 715 557

Board of Directors

Chair of the Board of

Directors 16,800

16,460

16,870 18,040 19,855

Vice chair of the Board of

Directors 13,200

13,250

13,250 14,070 14,400

Member of the Board of

Directors

8,577

9,220

9,466 9,826 9,932

Managing Director

170,426

178,559

187,901 189,981 202,408

Employment Fund’s

personnel

60,257

57,790

61,480 80,613 80,680

Annual fees of the Supervisory Board and the Board of Directors include monthly

and meeting fees and travel expenses.

Average annual fee

Meeting fees for Board of Directors meetings and separate fees for Audit Com-

mittee meetings have been included in the average fees for Board of Directors

members

Salaries,fringebenefitsandvariableperformance-relatedbonus

Personnel expenses without social security contributions divided by the average number of

personnel (person-years). These do not include the remuneration of the Managing Director.

Remuneration report

78Report of the Board of Directors 2025

REMUNERATION SCHEME FOR THE MANAGING DIRECTOR

A separate remuneration scheme approved by the Board of Di-

rectors applies to the Managing Director. The Board of Directors

decides on the payment of any bonuses. The bonuses of the other

management members are based on a remuneration scheme ap-

proved by the Board of Directors. Based on a proposal of the Man-

aging Director, and in accordance with approved bonus criteria, the

Board of Directors decides on the payment of bonuses.

ThesalariesandotherbenefitsandfeespaidtotheManaging

Director for 2025 are shown in the following table. Social security

contributions are excluded.

Position

Salary

and fringe

benefits

Variable

performance-

related bonus

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Managing

Director 184,693 17,715 202,408 189,981

TERMS OF EMPLOYMENT OF THE MANAGING DIRECTOR

The Managing Director’s terms of employment have been deter-

mined by the Board of Directors and they are stated in a written

employment contract. The remuneration of the Managing Director

consistsofafixedsalaryandavariableperformance-relatedbonus.

Performance targets and any remuneration to be paid are approved

bytheBoardofDirectors.ThefixedsalaryoftheManagingDirector

comprisesamonetarycompensationandtaxablebenefits(meal,

telephoneandcarbenefits).Theretirementageandpensionaccru-

al of the Managing Director are based on the general employment

pension legislation. The Fund has not provided a supplementary

pension arrangement for the Managing Director. The Managing

Director’snoticeperiodisdefinedintheemploymentcontractfor

both parties.

Remuneration report

79Report of the Board of Directors 2025

REMUNERATION FOR THE MANAGEMENT GROUP

The remuneration of Employment Fund’s Management Group con-

sistsofafixedsalaryandatelephonebenefitaswellasavariable

performance-related bonus. In 2025, the maximum bonus was set

at12%oftheannualsalaryincludingfringebenefits.Thefixedsala-

rycomprisesamonetarycompensationandtaxablebenefits.

The Management Group’s performance-related bonus is based on a

remuneration scheme approved by the Board of Directors each year.

Based on a proposal of the Managing Director, and in accordance

with approved bonus criteria, the Board of Directors decides on the

payment of bonuses.

ThesalariesandotherbenefitsandfeespaidtotheManagement

Group during 2025 are shown in the following table. Social security

contributions are excluded.

Position

Salary

and fringe

benefits

Variable

performance-

related bonus

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Management

Group 684,719 49,738 734,457 568,552

TERMS OF EMPLOYMENT OF THE MANAGING GROUP

The terms of employment for Management Group members have

beendefinedinawrittencontract.Theretirementageandpen-

sion accrual of the Management Group members are based on the

general employment pension legislation. The Fund has not pro-

vided a supplementary pension arrangement for the Management

Group members. The Management Group members’ notice period is

definedintheemploymentcontractforbothparties.

Remuneration report

Financial

statements

81Financial statements 2025

Financial statements (IFRS) 2025

Statement of changes in net position

STATEMENT OF CHANGES IN NET POSITION

ThefiguresareinEURthousand.

Change in net position Note 1 Jan–31 Dec 2025 1 Jan–31 Dec 2024

Contributions collected

Unemployment insurance contributions and other income 5 1,906,921 2,347,151

Unemployment insurance contributions and other income 1,906,921 2,347,151

Financing contributions paid

Financing contributions paid 6 -2,636,731 -3,128,553

Administrative expenses 7 -31,421 -34,161

Financing contributions paid and administrative expenses -2,668,152 -3,162,714

Net fair value gains on investments 14 33,148 68,308

Financing costs 8 -1,328 -1,445

Change in net position -729,412 -748,701

82Financial statements 2025

STATEMENT OF NET POSITION

ThefiguresareinEURthousand.

Assets Note 31 Dec 2025 31 Dec 2024

Non-current assets

Property, plant and equipment 9 2,335 2,752

Intangible assets 10 0 363

Total non-current assets 2,335 3,114

Current assets

Receivables from unemployment

insurance contributions 11 1,732 14,032

Accruals of unemployment insurance

contributions 11 298,783 401,914

Other receivables 13 51,562 27,895

Investment assets 15 741,492 1,394,904

Cash and cash equivalents 16 115,776 118,538

Total current assets 1,209,345 1,957,284

Total assets 1,211,680 1,960,398

Net position and liabilities Note 31 Dec 2025 31 Dec 2024

Net position

For previous periods 1,272,334 2,021,036

For the period -729,412 -748,701

Total net position 542,922 1,272,334

Non-current liabilities

Bonds 17 599,398 599,106

Total non-current liabilities 599,398 599,106

Current liabilities

Unemployment insurance contribution

liabilities 11 445 307

Other liabilities 18 68,914 88,651

Total current liabilities 69,359 88,958

Total liabilities 668,758 688,064

Total net position and liabilities 1,211,680 1,960,398

Statement of net position

83Financial statements 2025

STATEMENT OF CASH FLOWS

ThefiguresareinEURthousand.

Cash flows 1 Jan–31 Dec 2025 1 Jan–31 Dec 2024

Unemployment insurance contributions collected 1,975,107 2,692,067

Benefitspaid -2,657,683 -3,148,470

Interests paid 3,129 -370

Net cash flow from ordinary operations -679,447 -456,773

Cash flows from investments

Investmentsinfinancialinstruments -901,865 -2,626,143

Sales of investment instruments and realised income 1,578,550 2,984,975

Net cash flow from investments 676,685 358,832

Loans withdrawn and repaid 0 0

Net cash flow from financing activities 0 0

Net increase/decrease in cash and cash equivalents -2,762 -97,941

Cashandcashequivalentsatthebeginningofthefinancial

period 118,538 216,479

Cash and cash equivalents at the end of the financial period 115,776 118,538

Statementofcashflows

84Financial statements 2025 Notestothefinancialstatements

Notes to the financial statements

1 GENERAL INFORMATION

Employment Fund (‘the Fund’) (business ID

1098099-7), established in 2019, is an in-

dependent institution managed by labour

market parties and supervised by the Min-

istry of Social Affairs and Health and the

Financial Supervisory Authority. Its main

objectivesaretofinanceunemployment

benefitsandgrantadulteducationbenefits.

The Fund also directs, develops and super-

vises the implementation of the collection

procedure of unemployment insurance

contributions and determines and collects

the employer’s liability component and

transition security contribution. The Fund

also grants and pays employer’s training

compensations. The training compensation

is based on the Act on Compensations for

Training (1140/2013). Employment Fund

is domiciled in Helsinki and its address is

Itämerenkatu 11–13, 00180 Helsinki.

The principal accounting policies applied in

thefinancialstatementsoftheFundareset

out below. These policies have been con-

sistentlyappliedtofinancialperiodspre-

sented unless otherwise stated.

2 SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES AND

COMPARABILITY OF FINANCIAL PERIODS

2.1 Basis of preparation

EmploymentFund’sfinancialstatements

have been prepared in accordance with

International Financial Reporting Stand-

ards (IFRS) as adopted by the European

Union, conforming with the IAS and IFRS

standards as well as the SIC and IFRIC

interpretations applicable as per 31 Decem-

ber 2025. IFRS refers to the standards and

interpretations applicable to corporations

and set out in the Finnish Accounting Act

and the provisions issued under it in ac-

cordance with the procedure laid down in

Regulation (EC) No 1606/2002 of the Europe-

an Parliament and of the Council. The notes

tothefinancialstatementsalsocomply

with Finnish accounting and corporate leg-

islation supplementing IFRS standards.

EmploymentFundisanon-profit,govern-

ment-affiliatedfundwhoseoperationsare

based on the Act on the Financing of Un-

employmentBenefits,DecreeontheFinanc-

ingofUnemploymentBenefitsandonthe

Decree on the Rules of Procedure of Em-

ployment Fund with amendments, as stated

in section 1.

Accountingpoliciesofthefinancialstatements

85Financial statements 2025 Notestothefinancialstatements

Employment Fund collects and pays un-

employment insurance contributions. The

Fund does not carry out business opera-

tions in which it would generate revenues

arising from the sale of goods or rendering

of services. Due to the nature of the Fund’s

operations, the Fund does not generate

revenues, and common revenue recognition

principles do not apply. IFRS standards do

not directly regulate the structure of the

IFRSfinancialstatementsofafundlike

Employment Fund, or the basis for recog-

nition and measurement of transactions.

Employment Fund applied the framework

of IFRS standards and general principles

for recognition and measurement when it

prepareditsIFRSfinancialstatements.Due

to these factors, the primary statements of

theFund’sIFRSfinancialstatementsarethe

statement of changes in net position, the

statementofnetposition,andthecashflow

statement.

Thechangesinnetpositionforthefinan-

cial period consist of the sum of unemploy-

ment insurance contributions collected and

paid,gainsoninvestmentsandfinancial

items. The difference between the Fund’s

assetsandliabilitiesreflectstheaccumulat-

ed net position, which is also referred to as

the business cycle buffer. A more detailed

description of the business cycle buffer is

provided in note 4.2. Employment Fund

has no shares or equity. Therefore, these

IFRSfinancialstatementsdonotinclude

the statement of changes in equity. Instead,

the statement of changes in net position is

presented as a separate primary statement.

Duringthepresentedfinancialperiods,the

Fund did not have any such transactions

that should have been recognised in other

comprehensive income. Therefore, these

IFRSfinancialstatementsdonotincludea

statement of other comprehensive income.

Employment Fund does not operate as an

insurer as it does not issue or hold insur-

ance or reinsurance contracts. Therefore,

the Fund’s operations are not within the

scope of IFRS 17 Insurance Contracts. The

principal valuation method used in the

financialstatementsistheacquisitioncost,

althoughfinancialassetsandliabilitiesrec-

ognisedatfairvaluethroughprofitorloss

aremeasuredatfairvalue.Thefinancial

statements are presented in euros unless

otherwise stated.

Thepreparationoffinancialstatements

in conformity with IFRS requires the use

of certain critical accounting estimates. It

also requires management to exercise its

judgement in the process of applying the

accountingpoliciesofthefinancialstate-

ments.Thesignificantaccountingesti-

mates and judgements are described in note

There are no new IFRS standards or IFRIC

interpretations that are not yet effective and

that would be expected to have a material

impact on Employment Fund.

86Financial statements 2025 Notestothefinancialstatements

2.2 Foreign currency translation

Thefinancialstatementsarepreparedin

euros, which is Employment Fund’s func-

tional and presentation currency. The

Fund’s foreign currency transactions are

translated into the operating currency at

the exchange rates prevailing on the trans-

action dates. Deposits denominated in for-

eign currencies are measured at fair value

throughprofitandloss,andtheeffectsof

changes in exchange rates have been pre-

sented as part of the total fair value change.

2.3 Unemployment insurance contributions

Employment Fund determines and collects

unemployment insurance contributions

based on chapter 7 of the Act on the Fi-

nancingofUnemploymentBenefits.Em-

ployers report the paid wages and salaries

to the Incomes Register. Unemployment

insurance contributions are determined

four times per year based on the earnings

payment data for the three preceding cal-

endar months. Unemployment insurance

contributionincomeisrecognisedinthefi-

nancial statements on an accrual basis, and

the unemployment insurance income for

thefinalquarteroftheyearisrecognisedin

the balance sheet under pre-payments and

accrued income.

Employer’s liability components and

transition security contributions

Employment Fund determines and collects

liability components from employers. The

liability component applies to employers

whose payroll, used as the basis for the

unemployment insurance contribution, ex-

ceedstheminimumlevelofEUR2,455,500

(in 2025). An employer may be obligated to

pay the liability component if it has dis-

missed or laid off an aged employee whose

employment relationship has lasted at least

three years and the employee has been

unemployed or laid off for a lengthy period.

Unemploymentbenefitexpensesarefi-

nanced with the liability components.

Collected liability components that cover

the cost of daily unemployment allowanc-

es are recognised as income for the period

when the amount of income can be relia-

bly measured. In order to cover the cost of

additional daily allowances, the collected

liability components are recognised as

incomewithinseveralfinancialperiods

based on the estimate of the realisation of

corresponding expenses.

87Financial statements 2025 Notestothefinancialstatements

The statutory transition security scheme

entered into force in January 2023. Em-

ployment Fund can collect the transition

security contribution from an employer

dismissing an employee on production-re-

latedorfinancialgroundsiftheemployeein

question has reached the age of 55 and has

been employed by the employer in question

foratleastfiveyears.Thetransitionsecu-

rity contribution applies to large employers

whose payroll on which the unemployment

insurance contributions are based ex-

ceedsaspecificminimumlevelintheyear

preceding the date of dismissal. In 2025, the

minimum level was EUR 2,455 500.

The additional days of unemployment

allowance will soon be abolished. The

persons born in 1964 are the last age group

eligible for the additional days. This also

means that the employer will no longer

be obliged to pay a liability component for

employees that they have dismissed or laid

off. This means that the transition period

for the liability component will end by the

year 2035.

Transition security is intended for employ-

ees aged 55 or over dismissed on produc-

tion-relatedorfinancialgrounds,andit

contains a transition security allowance,

right to training and an extended job search

leave. The transition security training

is provided by the employment authority

and it corresponds to the maximum of two

months’ wages of the dismissed employee.

The transition security allowance is paid

by the unemployment fund or Kela and it

corresponds to one month’s salary of the

dismissed employee.

EmploymentFundwillfinancethetran-

sition security scheme with a transition

security contribution collected from the

employer. The contribution comprises two

parts of equal size: a common part and a

portion collected from the employer dis-

missing the employee. The common part is

collected from all employers by raising the

unemployment insurance contribution. A

common part of 0.03 percentage points is

included in the unemployment insurance

contributions collected by Employment

Fund from employers. The contributions

collected from individual employers are

recognisedintheresultforthefinancial

period on an accrual basis under the ac-

count category ‘Liability component and

transition security contribution’. The

non-invoiced part of the contributions is

recognised in the balance sheet under pre-

payments and accrued income.

88Financial statements 2025 Notestothefinancialstatements

Reconciliation based on chapter 12, section

3 of the Employment Contracts Act

Under the Employment Contracts Act, when

a court of law considers a reconciliation

matter, it must provide Employment Fund

with the opportunity to be heard. As a rule,

75% of the earnings-related daily unemploy-

ment allowance received by the employee

during the indemnity period is deducted

from the indemnity imposed on the em-

ployer for wrongful termination of employ-

ment. The court must order the employer to

pay the amount deducted from the compen-

sation to Employment Fund and inform it

ofthefinaljudgementorrulingonthecase.

The payment of the deduction to the Fund

must also take place when the employer

and the employee reach a settlement on the

compensation payable for wrongful termi-

nation of employment.

Receivables subject to debt-collection

The Fund collects and monitors neglected

unemployment insurance contributions,

those subject to enforcement and the con-

tributions due by companies in bankruptcy

or debt restructuring proceedings. As the

receivablesdonotincludeanysignificant

financialcomponents,theFundhasused

thesimplifiedmodelpermittedbyIFRS9.

2.4 Subsidies to unemployment funds

Under the Act on the Financing of Unem-

ploymentBenefits(555/1998),withregard

tothefinancingofearnings-relatedunem-

ployment allowances, Employment Fund is

liable for the costs incurred from unemploy-

ment allowances, employment promotion

measures and from job alternation compen-

sation, insofar as the state or individual un-

employment funds are not liable for these.

Theabove-mentionedbenefitsarepaid

from the unemployment funds. The job al-

ternation leave scheme was abolished on 1

August 2024, and from that date, new leave

agreements could no longer be concluded.

However, leaves that had started before

this date (up to 280 days) can be completed.

Thus, expenses arising from job alternation

compensation only accumulated during the

firstmonthsof2025.

Employment Fund is also liable for the in-

surance contributions for unemployed per-

sons and recipients of the adult education

allowance that are paid through the Finnish

Centre for Pensions to the employment pen-

sion institutions.

Under the Decree on the Implementa-

tion of the Act on Unemployment Funds

(272/2001), Employment Fund is tasked

with processing prepayment applications

and payment decisions and monitoring

thesufficiencyofprepayments.TheFund

makes prepayments to the unemployment

funds twice a month in accordance with

the budget approved at the end of the pre-

viousfinancialperiod.TheFundreceives

89Financial statements 2025 Notestothefinancialstatements

monthly statistics from the Financial

Supervisory Authority on the accumulat-

ed allowances paid by the unemployment

funds to their customers, and based on that,

the Fund has accrued the prepayments and

actual payments to each unemployment

fund either as a receivable or liability in

its accounts. This accrual is recognised by

benefittype.Transitionsecurityallowance

wasaddedtothebenefittypesofferedby

the unemployment funds in 2023. Transi-

tionsecurityisusedtofinanceexpenses

arising from the transition security allow-

ance paid to dismissed employees aged 55

and over.

The Ministry of Social Affairs and Health

pays to Employment Fund the government

contributions that the Fund pays to the

unemploymentfundsasfinancingcontri-

butions. The Fund transfers the prepay-

ments of government contributions to the

unemploymentfundsonthefirstbanking

day of each month. In 2025, the Ministry of

Social Affairs and Health paid government

contributionstotheFundasfixedmonthly

prepayments unless otherwise proposed by

Employment Fund.

From the beginning of 2025, municipalities’

responsibilityforfinancingunemployment

benefitshasalsopartiallycoveredthebasic

component of earnings-related allowances.

Municipalities’ responsibility for funding

part of the basic component starts after 100

days of unemployment and then gradually

increases as unemployment continues. The

municipalities’ contribution to the basic

component of the earnings-related daily

allowance is invoiced monthly by the Social

Insurance Institution of Finland afterwards,

which pays the sum to Employment Fund.

The income received from the Ministry of

Social Affairs and Health and municipal-

ities and the payments made to the un-

employment funds have been recognised

inamountscorrespondingtothebenefit

payments made by the unemployment

funds to their customers. The Ministry of

Social Affairs and Health will approve the

financialstatementsoftheunemployment

fundsonthebasisoffinalinformationin

summer 2025, at which point the Fund will

make equalisations in the account balances

between the unemployment funds, govern-

ment and municipalities.

Under section 4 of the Act on the Financing

ofUnemploymentBenefits,Employment

Fund has sole responsibility for funding the

increased earnings-related component laid

down in section 6 of the Unemployment

Security Act. The increased earnings-relat-

ed component of unemployment security

was abolished on 1 January 2025. However,

it was paid after that for a maximum of 200

days in situations where the conditional

employment promotion service had started

in 2024.

From the beginning of 2015, the means by

which the higher income earnings-related

unemployment allowances are calculated

was changed so that the level of allowances

decreased slightly. The same change was

carried out regarding the supplementary

earnings-related allowances. These chang-

es implement the reduction of unemploy-

mentallowancesasspecifiedintheFinnish

Government’s framework decision. The

change has decreased expenses related

to earnings-related daily unemployment

allowances. To implement government sav-

ings, Employment Fund paid the amount

of savings (about EUR 50.3 million) yearly

90Financial statements 2025 Notestothefinancialstatements

to the Social Insurance Institution of Fin-

landtofinancebasicincomesecurityunder

section 23 of the Act on the Financing of

UnemploymentBenefits(555/1998).These

payments have been discontinued and no

further payments were made in 2025.

Payments to the Finnish Centre

for Pensions and the State Pension

Fund and the interest on them

Employment Fund’s second-largest ex-

pense item has been the contribution paid

to the Finnish Centre for Pensions to cover

the pension liabilities and expenses arising

from taking into account the time of un-

employment, education and job alternation

leave (sections 74 and 182 of the Employees

Pensions Act [395/2006]). As set out in the

Government Programme, training and job

alternation leave are being abolished. How-

ever, pension liability contributions arising

from them were still paid during the tran-

sition period in 2025. The amount of this

contribution is determined by estimating

the average amount of pension contribu-

tions that would be paid for the unpaid peri-

ods that constitute the basis of the accrued

pension security. As stated above, the Fund

is liable to pay the contribution referred to

in sections 62 and 133 of the State Employ-

ees’ Pensions Act (1295/2006) to the State

Pension Fund.

Payments made to the Finnish Centre for

Pensionsforthefinancialperiodinaccord-

ance with section 12c of the Employees

Pensions Act (561/1998) are based on an

estimate provided by the Finnish Centre

forPensionsandadjustedinthefinancial

statements. The difference between the

payments made and the adjusted estimate

is recognised as prepayments and accrued

income or accruals and deferred income.

Thefinalpaymentamountisreceived

from the Finnish Centre for Pensions in the

springoftheyearfollowingthefinancial

period,andthedifferencebetweenthefinal

payment and payment estimate used in

thefinancialstatementsispresentedasan

adjustment, an equalisation payment for

the previous year, in the following year’s

financialstatements.Therevisedpayment

for the year and the equalisation payment

forthepreviousyearhavebeenspecifiedin

thenotestothefinancialstatements.

The Finnish Centre for Pensions assigns

interest on the charges imposed on Employ-

ment Fund according to the TyEL premium

insurance interest rate. The revised pay-

mentincludedinthefinancialstatements

accruesinterestuntiltheendofthefinan-

cial period (debiting interest). The Finnish

Centre for Pensions refunds the interest to

Employment Fund according to the actual

payments and times of payment (compen-

satory interest).

Thefinalpaymentamountdeterminedin

the following year accrues interest until the

clearance date agreed between the Finnish

Centre for Pensions and Employment Fund

(previous year’s debiting interest). Compen-

satory interest is correspondingly calculat-

ed for all payments made by the Fund in the

previous year (compensatory interest for

the previous year’s payments). The debiting

and compensatory interests for payments

to the State Pension Fund are calculated in

a manner identical to the above.

91Financial statements 2025 Notestothefinancialstatements

Settlement to the Social Insurance

Institution of Finland of income

from the unemployment insurance

contributions of employees who are not

members of unemployment funds

Under sections 8 and 23 of the Act on

the Financing of Unemployment Bene-

fits(555/1998),theFundmakesanannual

prepayment to the Social Insurance Institu-

tion of Finland from the employees’ unem-

ployment insurance contribution income,

corresponding to the percentage of employ-

ees who are not members of unemployment

funds. The amount of the settlement is

estimated from data collected by Statistics

Finland, and the estimate is approved by

the Ministry of Social Affairs and Health.

Thefinalamountofthepaymentisbased

on a calculation prepared by the Ministry

of Social Affairs and Health of the amount

ofbenefitsfinancedinthismannerpaidby

the Social Insurance Institution of Finland

duringthefinancialperiod.Transitionse-

curityallowancewasaddedtothebenefits

financedfrom1January2023.Transition

securityisusedtofinanceexpensesarising

from the transition security allowance of

dismissed employees aged 55 and over who

are not members of unemployment funds.

Adult education benefits

Employment Fund grants and pays adult

education allowance and scholarships

forqualifiedemployeesinaccordance

withtheActonAdultEducationBenefits

(1276/2000). Employment Fund is also re-

sponsibleforfinancingtheadulteducation

allowance scheme for employees and schol-

arshipsforqualifiedemployeesworkingfor

employers other than central government.

Thestateisresponsibleforfinancingthe

adult education allowance scheme for en-

trepreneursandscholarshipsforqualified

employees working for central government.

Theresponsibilityforfinancingisspecified

in section 30 of the Act on Adult Education

Benefits.Adulteducationbenefitswillbe

abolished by the act that entered into force

on 1 June 2024. Adult education allowances

andscholarshipsforqualifiedemployees

will only be granted during a transition pe-

riod, and the granting of the adult education

allowances will end on 31 December 2025.

Financing of pay security

Under section 31 of the Pay Security Act

(866/1998), Employment Fund is responsible

for the state’s pay security expenses. Pay

security expenses are paid once per year,

normally in the spring of the following year,

to the Ministry of Economic Affairs and

Employment, based on an invoice sent by

the Ministry.

Transition security training

The transition security scheme that entered

into force from the start of 2023 includes

transition security training for employees

aged 55 and over dismissed on produc-

tion-relatedorfinancialgrounds.Employ-

mentFundisresponsibleforfinancingthe

training. Employees covered by transition

security are eligible for transition secu-

rity training corresponding to pay of two

months purchased by the employment

authority. Employment areas compile the

information on training expenditure and

invoice the sum to Employment Fund on a

quarterly basis.

92Financial statements 2025 Notestothefinancialstatements

Member State invoicing for

unemployment security

Article 65 of Regulation (EC) No 883/2004 of

the European Parliament and of the Coun-

cil on the coordination of social security

systems (basic regulation) provides for

situations in which a person becomes un-

employed after working in a Member State

other than their country of residence. In

Finland, Employment Fund has been desig-

nated as the competent body when imple-

menting this basic regulation with regard to

earnings-related unemployment insurance.

The Fund’s responsibilities include the pay-

ment and collection of the compensation

laid down in paragraphs 6 and 7 of Article

65, incurred from unemployment allowance

paid to the members of unemployment

funds.

The Fund applies for compensation from

Member States depending on how the

unemployment funds have paid the un-

employment allowances to the individuals

who have been working in another Mem-

ber State. In turn, Member States apply for

compensation from Employment Fund for

citizens of other Member States who have

workedinFinland.Thebenefitswillbe

fully repaid but not more than the amount

that would have been paid in the country

of employment. Income and expenses are

recognised on a cash basis.

Training compensation

Employment Fund manages employers’

training compensations. The training com-

pensation is based on the Act on Compen-

sations for Training (1140/2013). The train-

ingcompensationisafinancialsupportto

develop competence for those employers

who are not eligible for a training deduc-

tion granted by the Business Income Tax

Act or Agricultural Income Tax Act. These

employers include municipalities, parishes

andnon-profitorganisations.Thepurpose

of the training compensation is to improve

the employer’s opportunities to organise

training for its employees so that they can

enhance their vocational competence.

Training compensation can be granted for a

maximum of three training days per em-

ployeeannually.Thefinancingoftraining

compensation has been designated so that

each calendar year, the Ministry of Finance

pays the amount that the Fund has refund-

ed to employers in the form of training

compensation based on an application from

Employment Fund.

93Financial statements 2025 Notestothefinancialstatements

Parliament approved the act abolishing the

training compensation scheme in Decem-

ber 2025. Under the act, no further training

compensation will be granted for train-

ing completed on or after 1 January 2026.

Training compensation can be paid in 2026

for training that takes place in 2025 and

that meets the requirements. The appli-

cation for training compensation for 2025

must be submitted before the end of Janu-

ary 2026. The applicants must also submit

their requests for administrative review

within one year.

Pensions and employee benefits

EmploymentFundhasonlydefinedcon-

tribution pension schemes. Statutory pen-

sions are managed by a pension insurance

provider. Pension contributions are recog-

nisedasexpensesforthefinancialperiodin

which the payments are incurred.

The Fund has a bonus system for its em-

ployees. The Board of Directors decides on

the payment of any bonuses on the Manag-

ing Director’s proposal and in compliance

with the bonus criteria. Realised bonuses

arerecognisedasexpensesforthefinancial

period relevant to the bonus system.

2.5 Property, plant and equipment

Property, plant and equipment comprises

the Fund’s machinery and equipment and

the leasehold improvements. Property, plant

and equipment are measured in the state-

ment of net position at the historical cost

minus the accumulated depreciation and

impairment charges.

Leasehold improvements are added to the

premises improvement’s carrying amount

when it is probable that future economic

benefitsassociatedwiththeitemwillflow

to the Fund. The expenses of ordinary re-

pair and maintenance costs are reported in

the period in which they are incurred.

Depreciation on property, plant and equip-

ment is calculated using the straight-line

method over their estimated useful lives.

As a rule, the residual value is estimated to

be zero. Assets’ residual values and useful

livesarereviewedwhenfinancialstate-

ments are prepared. Depreciation periods

areadjustediftheestimatechangessignifi-

cantly. Estimated useful lives by asset class

are as follows:

• Leasehold improvements 5 years

• Machines and equipment 3 years

Gains and losses on disposal and decom-

missioning of property, plant and equip-

ment are calculated as the difference be-

tween net proceeds and the carrying value.

Gains and losses on disposals are included

in the administrative expenses in the state-

ment of changes in net position.

2.6 Intangible assets

Intangibleassetswithfiniteusefullifecom-

prise acquired or internally produced com-

puter software, and other intangible assets

when it is probable that future economic

benefitsassociatedwiththeassetwillflow

to the Fund and the cost can be measured

reliably. Implementation costs related to

the cloud computing service arrangement,

which is a service contract, are primarily

recorded as expenses incurred when the

relevant implementation service is ob-

tained. Implementation costs related to the

94Financial statements 2025 Notestothefinancialstatements

cloud service arrangement are only capi-

talised and amortised over a longer period

of time in cases where the implementation

service is not distinct from the service that

allows access to the software, or when the

costs relate to the creation of a separate

intangible asset.

The cost of an internally generated intan-

gibleassetisdefinedasthesumofdirectly

attributable production costs allocated to

the asset.

Costs associated with maintaining com-

puter software are reported as expenses

incurred. Research costs are recognised as

anexpenseinthefinancialperiodinwhich

they are incurred. Development costs that

are attributable to the design and testing of

newsoftware,ortosignificantchangesto

existing software, are capitalised only when

they meet the above-mentioned criteria for

theactivationofintangibleassetsspecified

in International Accounting Standards (IAS

38) referred to above.

Intangibleassetswithfiniteusefullife

are measured at historical cost less

amortisation and impairment charges. Am-

ortisation of intangible assets is calculated

using the straight-line method over their

useful lives. Estimated useful lives by asset

class are as follows:

• Computer software 3 years

• Softwaredevelopmentexpenses3years

2.7 Impairment of non-financial assets

Attheendofeachfinancialperiod,itisas-

sessed whether there have been any events

or changes in circumstances that indicate

that the value of an intangible asset or

an item of property, plant and equipment

subject to amortisation or depreciation may

have changed. If there are any indicators

of impairment, the recoverable amount is

determined.

The recoverable amount is the asset’s fair

value less the costs of disposal or the value

in use, whichever is higher. Value in use

refers to the asset’s expected future net cash

flowsthathavebeendiscountedtonetpres-

ent value by using the determined discount

rate. An impairment loss is recognised in

the statement of changes in net position for

the amount by which the asset’s carrying

value exceeds its recoverable amount. The

useful life of a depreciated asset is reviewed

in connection with the recognition of im-

pairment losses.

Impairments are reversed if circumstances

change and an asset’s recoverable amount

changes after the recognition of the impair-

ment but not to an amount higher than the

carrying value would be without the im-

pairment charge.

2.8 Financial assets and liabilities

Financial assets

Employment Fund applies the IFRS 9 (Fi-

nancial Instruments) standard, which was

published by the International Accounting

Standards Board and took effect on 1 Jan-

uary2018.IFRS9specifieshowanentity

shouldclassifyandmeasurefinancial

assets. It also includes a model for impair-

ment charges based on expected losses and

general requirements for hedge accounting.

IFRS9requiresfinancialassetstobeclas-

sifiedintothreemeasurementcategories:

those measured at amortised cost, those

95Financial statements 2025 Notestothefinancialstatements

measured at fair value through other com-

prehensive income and those measured at

fairvaluethroughprofitandloss.Forfinan-

cial liabilities, the standard retains most of

the IAS 39 requirements. For impairment,

a model based on expected credit losses is

used.

EmploymentFund’sfinancialassetsconsist

of investments (note 15) as well as cash and

cash equivalents (note 16). On the date of

acquisition, the management of the Fund

classifiesthefinancialassetsintoclasses

that determine the basis of valuation. All

financialassetsarerecognisedonthetrade

date (the day when the Fund commits to

buy or sell the asset).

Investments are presented in the statement

of net position as current assets unless their

maturity is over 12 months and the man-

agement intends to dispose of them more

than 12 months after the reporting date.

Investments are initially recognised at fair

value. Transaction costs are recognised di-

rectly as expenses. After initial recognition,

the investments are measured at fair value

on each reporting date, and realised and

unrealised changes in fair value are rec-

ognised in the statement of changes in net

position in the period in which they arise.

Net changes in fair value are presented in

the statement of changes in net position

on the line ‘Net income from measuring

investments at fair value’. All interest and

dividend income from investments are

included in the net change of the fair value.

Thebasisfordefiningfairvalueispresent-

ed in note 14.

Financial assets are de-recognised when

therightstoreceivecashflowshaveex-

pired or have been transferred to another

party such that all the risks and rewards

have been transferred.

Cash and cash equivalents

Cash and cash equivalents comprise cash

in hand and deposits held at call with

banks.

Loans

Loans are recognised initially at fair value,

the net of the transaction costs incurred.

Loans are subsequently carried at am-

ortised cost. Any difference between the

proceeds (net of transaction costs) and

the redemption value is recognised in the

statement of changes in net position over

the period of the loan using the effective

interest method.

Fees paid on loan facilities are recognised

as the transaction costs of the loan to the

extent that it is probable that some or all of

the facility will be withdrawn. In this case,

the fee is deferred and recognised in the

statement of net position until the loan is

withdrawn. To the extent there is no ev-

idence that it is probable that some or all

the loans of the facility will be withdrawn,

the fee is capitalised as a prepayment for

liquidity services and amortised over the

period of the facility.

2.9 Rental agreements

As a lessee, the Fund has applied the IFRS

16 Leases standard since 1 January 2019.

96Financial statements 2025 Notestothefinancialstatements

IFRS16specifiestherequirementsconcern-

ing recognition, valuation and information

tobepresentedinthefinancialstatements.

The standard introduces a single lessee ac-

counting model. In principle, all leases with

a term of more than one year are recognised

in the balance sheet unless the underlying

assetisoflowvalue.Onthefirstdayofthe

lease, the lessee recognises a liability for its

obligation to make lease payments and an

asset item for its right to use the asset. The

lessee must recognise the interest expens-

es on the liability and the planned depre-

ciation on the asset item. In addition, the

lesseemustredefinetheamountofthelease

liability in conjunction with certain events

(such as a change in the term of the lease or

changes to the lease payments due to index

adjustments). The Fund uses the transition

relief permitted by IFRS 16 with regard to

short-term leases (with terms of less than 12

months) and leases of low-value assets.

3 CRITICAL ACCOUNTING

ESTIMATES AND JUDGEMENTS

Thepreparationoffinancialstatementsin

conformity with IFRS requires the manage-

ment to make estimates and assumptions

that have affected the income, expenses, as-

setsandliabilitiespresentedinthefinancial

statements. Judgement is also needed in

the application of accounting policies. The

estimates are based on the best information

available on the reporting date. The evalua-

tion is based on both earlier experience and

assumptions about the future that are most

probable on the reporting date. Actual re-

sults may differ from these decisions based

on estimates and assumptions. Possible

changes in estimates are recognised in the

period in which the estimate is adjusted and

all subsequent periods. The planning and

managementofEmploymentFund’sfinanc-

es are largely based on forecasts of changes

in the unemployment rate, unemployment

expenses, employment rate and payroll.

Under normal conditions, the Fund must set

theinsurancecontributionsatasufficient

level so that all projected expenses can be

covered with the insurance contributions.

The unemployment insurance contributions

(contribution rates) are determined for one

calendar year at a time. When the contri-

butions are changed, the employers’ and

employees’ contributions are changed by

the same percentage point.

If necessary, the Fund exercises judgement

in applying the valuation methods used in

the measurement of fair value insofar as the

fair values are not received as direct prices

from active markets. Valuation principles

are described in note 15 (Investment assets).

Fair value determination of current money

market investments is based on the dis-

countedcashflows,andmanagementhas

used judgement when it has concluded that

the change of credit risk does not have a

material impact on the change of fair val-

ues of investments due to their short dura-

tion and high credit rating. Credit risks are

presented in section 4 Financial risk man-

agement. The Fund’s critical assumptions

concerning the future and key uncertainties

in the reporting date are related to the fac-

tors mentioned above.

97Financial statements 2025 Notestothefinancialstatements

Credit losses

Employment Fund applies the IFRS 9 stand-

ard model for expected credit losses when

estimating impairment charges associated

with uncertain unemployment insurance

contribution receivables (note 12). In this

model, expected losses are recognised for

theentirevalidityperiodofthefinancial

asset, and the model is based on the amount

of the outstanding receivables and the time

period for which they remain outstand-

ing. The parameters applied in the model

are based on an estimate of the amount

of unemployment insurance contribution

receivables, liability component receivables,

reconciliation receivables based on the Em-

ploymentContractsAct,benefitreceivables

and interest receivables to be recognised as

credit losses on the reporting date. Expected

credit losses throughout the entire period of

validity are calculated by multiplying the

gross carrying value of the unpaid receiv-

ables by the expected proportion of loss.

Changes to expected credit losses are recog-

nisedthroughprofitandloss.

Segment reporting

The IFRS 8 Operating Segments standard

requires entities to disclose information to

enableusersoftheirfinancialstatementsto

evaluatethenatureandfinancialeffectsof

the business operations in which the entity

engages and the economic environments in

whichitoperates.Asdefinedinthestand-

ard, an operating segment is a component

of an entity

A. that engages in activities from which it

may earn revenues and incur expenses

B. whose operating result is regularly re-

viewed by the entity’s most senior exec-

utive decision-maker to make decisions

about resources to be allocated to the

segment and assess its performance,

and

C. onwhichdiscretefinancialinformation

is available.

Further,accordingtothedefinitionofthe

standard, the function of the most senior

executive decision-maker is to allocate

resources to and assess the performance of

the operating segments of an entity.

Employment Fund is tasked with collecting

unemployment insurance contributions,

the level of which has been determined by

the public authorities. The Fund pays the

collected contributions onwards, mainly to

unemployment funds.

Employment Fund uses the collected con-

tributions for conservative investment

activitiesinordertocovercurrentfinancing

contributions. The Fund also covers any

deficitsitincurswithloanfinancing.

EmploymentFundisanon-profit,govern-

ment-affiliatedfund.Themanagement

monitors the Fund’s operations as a single

entity, which consists of the contributions

collectedandbenefitspaid,resultingina

change in net position. The Fund’s manage-

ment does not actually allocate resources to

the entity’s activities or review the effective-

ness of operations.

For these reasons, Employment Fund’s

management has made the assessment

that the presentation of segment informa-

tion is not appropriate. Presenting segment

98Financial statements 2025 Notestothefinancialstatements

information would not improve the abil-

ityofareaderofthefinancialstatements

to assess the Fund’s operations, nature of

theoperatingenvironmentandfinancial

effects. According to Employment Fund’s

management, the nature of the Fund’s oper-

ations and operating environment and the

financialimpactsarefairlypresentedinthe

IFRSfinancialstatements.

4 FINANCIAL RISK MANAGEMENT

TheFundseekstolimitfinancialandin-

vestment risks to a level where their real-

isationwillnotresultinsignificantlosses

for the Fund to the extent of creating pres-

sure to increase contributions or endanger

the liquidity of the Fund. The investment

andfinancingactivitiesandrisklimitsof

Employment Fund are provided for in more

detail in the investment principles approved

by the Supervisory Board and the invest-

ment plan and debt management plan

approved by the Board of Directors.

The market risk of investments is primarily

measured by using the stress-test meth-

od, in which a risk indicator expressed

as annual volatility is assigned to each

investment class on the basis of historical

fluctuationsinvalue.EmploymentFund’s

financialrisksmainlyrelatetoinvestments,

and they comprise market risk, credit and

counterparty risk and liquidity risk. Invest-

mentsarediversifiedinaccordancewith

the investment principles approved by the

Supervisory Board across various asset

classessoastoreducefinancialrisks.Risk

limits are set to such a level that their real-

isation would not result in the Fund incur-

ring losses that would give rise to pressures

to increase the level of contributions. The

Fund may enter into derivative contracts

forhedgingpurposes;however,derivatives

were not used during the periods presented.

The Fund measures all its investments at

fair value because they have been designat-

edasfinancialassetsatfairvaluethrough

profitandloss.Theinvestmentsareitem-

ised in note 15, along with their fair values

byassetclassandthebasisfordefiningfair

value.

4.1Financial risk factors

Market risk

The main market risk factor for

Employment Fund’s investments and

liabilities is the interest rate risk. The

Fund’s investment portfolio is dominated

byfixed-incomeinvestments(bondsand

money market investments).

Employment Fund may make investments

directly, or indirectly through investment

funds. At the end of the review period, 28%

(31 Dec 2024: 22%) of the investments were

indirect.

99Financial statements 2025 Notestothefinancialstatements

On 31 December 2025 and 31 December 2024, the

market risks for the investments were as follows:

Investment item,

31 Dec 2025

Risk,

per cent

Capital,

EUR thousand

Risk,

EUR thousand

Bank deposits 0.50% 123,680 618

Money market 1.00% 185,028 1,850

Central government and

general government bonds 4.00% 173,356 6,934

Bank bonds 4.50% 137,944 6,207

Corporate bonds 5.00% 129,656 6,483

Equities 25.00% 28,291 7,073

Alternative investments 10.00% 87,428 8,743

Total risk 4.38% 865,383 37,908

Investment item,

31 Dec 2024

Risk,

per cent

Capital,

EUR thousand

Risk,

EUR thousand

Bank deposits 0.50% 116,567 583

Money market 1.00% 473,183 4,735

Central government and

general government bonds 4.00% 244,324 9,773

Bank bonds 4.50% 279,942 12,597

Corporate bonds 5.00% 250,436 12,522

Equities 25.00% 43,663 10,916

Alternative investments 10.00% 103,356 10,336

Total risk 4.07% 1,511,471 61,461

Total risk was 4.38% (31 Dec 2024: 4.07%) of the Fund’s assets and

2.0% (31 Dec 2024: 2.6%) of the Fund’s income in 2025. The risk

posed by the investment portfolio is moderate due to its conserva-

tive structure and moderately low risk level of the securities in the

portfolio.

All money market investments carry variable interest rates (31 Dec

2024: 100%). Of the bonds, 11% were at variable rates (31 Dec 2024:

8%).Variable-rateinvestmentsexposetheFundtoacashflowin-

terestraterisk,whileinvestmentsatfixedratesexposetheFundto

a fair value interest rate risk.

If, on 31 December 2025, the Euribor rates and interest rate curve

(swap rates) had been 0.5 percentage points higher while all oth-

er variables remained constant, the change in net position would

have been EUR 5.1 million (31 Dec 2024: EUR -9.1 million) lower.

Respectively, if on 31 December 2025 the Euribor rates and interest

rate curve (swap rates) had been 0.5 percentage points lower, the

total change in net position would have been EUR 5.1 million (31

Dec 2024: EUR 9.1 million) higher.

100Financial statements 2025 Notestothefinancialstatements

Credit risk

The credit risk of the investments is man-

aged by issuer credit limits. Limits for each

issuer are determined by taking account

of the absolute size, economic position

and future outlook of the issuer. The Fund

continuously monitors the credit stand-

ing and future outlook of the issuers, and

when changes occur, the limits are either

increased or decreased. The Fund mainly

invests in banks in the Nordic countries

that have high credit ratings, states with

strong credit ratings (Finland, Germany, the

Netherlands, Belgium, France, Austria and

Sweden), companies mainly in Finland and

some in Sweden, and municipalities. Cash

and cash equivalents are only held at banks

with high credit ratings. The spread dura-

tion of the credit risk included in the invest-

ments at the end of the review period was

1.71 years (31 Dec 2024: 1.63 years).

The average credit rating of the investment

portfolio is evaluated on Standard & Poor’s

rating scale, which is based on historical

probabilities of credit losses. The invest-

ment portfolio credit rating is estimated to

be about BBB+ on 31 December 2025 (31 Dec

2024: BBB+).

The Fund’s investments mainly consist of

government and bank bonds. Their credit-

worthiness has been determined using the

S&P credit rating. Most of the banks that the

Fund has invested in have good credit rat-

ings. However, not every regional bank and

companyhasanofficialcreditrating,sothe

credit quality of these entities is determined

using credit ratings received from a third

party.

101Financial statements 2025 Notestothefinancialstatements

ThefollowingtabledescribesEmploymentFund’sfixed-incomeinvestmentsandcredit-

worthinessbygroup.Thefiguresareexpressedinthousandsofeuros.

Investments distributed by the issuer’s

rating

31 Dec 2025,

EUR thousand

31 Dec 2025,

per cent

31 Dec 2024,

EUR thousand

31 Dec 2024,

per cent

AAA 60,185 8.1% 190,409 14.0%

AA+ 121,950 16.4% 119,129 8.7%

AA 27,070 3.6% 35,981 2.6%

AA- 208,162 28.0% 244,046 17.9%

A+ 18,556 2.5% 198,707 14.6%

A 42,463 5.7% 81,482 6.0%

A- 44,225 5.9% 81,888 6.0%

BBB+ 15,676 2.1% 85,041 6.2%

BBB 126,620 17.0% 177,127 13.0%

BBB- 46,050 6.2% 70,027 5.1%

BB+ 1,403 0.2% 4,765 0.3%

BB 4,226 0.6% 22,716 1.7%

BB- 6,827 0.9% 21,264 1.6%

B+ 3,103 0.4% 0 0.0%

B 0 0.0% 0 0.0%

B- 0 0.0% 0 0.0%

CCC+ 0 0.0% 0 0.0%

CCC 0 0.0% 0 0.0%

NR 18,219 2.4% 31,847 2.3%

Total 744,735 100.0% 1,364,429 100.0%

The amount of Employment Fund’s un-

employment insurance contribution re-

ceivables, liability component receivables,

reconciliation receivables based on the Em-

ploymentContractsAct,benefitreceivables,

and interest receivables, are included in the

credit risk. The most important factor in

the realisation of the aforementioned credit

risk is related to cases in which customers

liable for paying unemployment insur-

ance contributions become insolvent (due

to bankruptcy, corporate restructuring or

debt restructuring). The actual credit losses

arising from unemployment insurance con-

tribution receivables totalled EUR 3.5 (2.7)

million in 2025. As a whole, Employment

Fund’scollectionprocessisveryefficient.

102Financial statements 2025 Notestothefinancialstatements

Liquidity risk

The Fund aims to manage liquidity risk as follows:

1. Liquid realisable investments

2. Credit limits and borrowing capacity

3. Maintaining unemployment insurance contributions at reason-

able level and increasing them as necessary

Tosecureitsliquidity,infixed-incomeinvestmentswithlessthan

one year’s maturity, the Fund keeps an amount that covers at least

one month’s expenses. When the liquidity buffer decreases below

this limit, the Fund uses short-term borrowing to cover the tempo-

raryliquiditydeficit.Forthispurpose,theFundhasaEUR300mil-

lion commercial paper programme (31 Dec 2024: EUR 300 million).

The Fund also has EUR 600 million in committed revolving credit

facilities (RCF) with four banks (31 Dec 2024: EUR 600 million). The

commercial paper programme and the revolving credit facilities

remained unused at the end of 2024 and at the end of 2025.

ThefiguresinthetablesareinEURmillion.

Unused committed revolving credit facilities 31 Dec 2025 31 Dec 2024

RCF due in more than one year 600 600

Total 600 600

Unused uncommitted revolving credit facilities 31 Dec 2025 31 Dec 2024

Commercial paper programme 300 300

Total 300 300

EmploymentFundalsosecureditsliquiditythroughdebtfinancing

during 2025. The Fund has the following issuer credit ratings as

confirmedbyStandard&Poor’s(24June2025):

• Long-term credit rating AA+, stable outlook

• Short-term credit rating A-1+, stable outlook

EmploymentFunduseddebtfinancingin2025.Attheendofthe

review period, EUR 600 million in bonds (31 Dec 2024: EUR 600

million) were in use.

103Financial statements 2025 Notestothefinancialstatements

Fixed interest rate periods for loans

Thefixedinterestrateperiodsforloansinthestatementofnetpositionwereaspresentedinthetable.ThefiguresareinEURthousand.

Loans, 31 Dec 2025

Nominal value EUR

million

Fixed interest rate period

in years Interest rate Due date Credit rating

Bond 2027 600 1.46 0.01% 16 June 2027 AA+

Total 600 1.46

Loans, 31 Dec 2024

Nominal value EUR

million

Fixed interest rate period

in years Interest rate Due date Credit rating

Bond 2027 600 2.46 0.01% 16 June 2027 AA+

Total 600 2.46

104Financial statements 2025 Notestothefinancialstatements

Maturity of financial liabilities

ThefollowingtablesshowEmploymentFund’sfinancialliabilitiesbygroupbasedonthematuritiesofoutstandingcontracts.Thefigures

are in EUR thousand.

Financial liabilities, 31 Dec 2025

Less than 6

months 6–12 months 1–3 years 4–7 years

Total cash flow based on

contracts Book value assets(-)/liabilities

Accounts payable 4,662 0 0 0 4,662 4,662

Loans 60 0 600,060 0 600,120 599,398

Liabilities associated with right-

of-use assets 274 270 1,056 1,030 2,631 2,536

Total 4,996 270 601,116 1,030 607,412 606,596

Financial liabilities, 31 Dec 2024

Less than 6

months 6–12 months 1–3 years 4–7 years

Total cash flow based on

contracts Book value assets(-)/liabilities

Accounts payable 2,261 0 0 0 2,261 2,261

Loans 60 0 600,120 0 600,180 599,106

Liabilities associated with right-

of-use assets* 385 385 1,503 727 2,999 2,930

Total 2,706 385 601,623 727 605,440 604,296

*Cashflowsfromliabilitiesassociatedwithright-of-useassetshavebeenadjustedtoreflectthebasesforbookvaluesasof31December2024.

105Financial statements 2025 Notestothefinancialstatements

4.2 Business cycle buffer

Under section 3 of the Act on the Financing of Unemployment

Benefits,EmploymentFundmaintainsabusinesscyclebufferto

ensure liquidity and balance out changes in unemployment insur-

ancecontributionsduetoforeseeableeconomicfluctuationsinthe

national economy.

The business cycle buffer accrues on the basis of the difference

between Employment Fund’s assets and liabilities. When the

unemployment insurance contributions are set, the forecast for

the maximum amount of assets or liabilities in the buffer may not

exceed expenses corresponding to an unemployment rate of six

percentage points. When the decision on the level of unemploy-

ment insurance contributions is made, the forecast for the business

cycle buffer may by law exceed the maximum amount of assets

over two years during a three-year review period to ensure a steady

payment trend. In that case, however, unemployment insurance

contributions may not be set higher than in the previous year. The

maximum amount of the business cycle buffer is calculated on the

basisofthefiguresintheannualfinancialstatements.

The investment of the assets accrued in the buffer is regulated by

theFund’sinvestmentanddebtfinancingprinciplesandtheinvest-

mentplanapprovedeachyear.Theuseofdebtfinancingisregulat-

ed in the same principles as well as in the debt management plan.

The maximum amount of the buffer (net position) is calculated by

dividing Employment Fund’s annual expenses by the average un-

employment rate for the year and multiplying the result by six. The

following table presents the amount of the business cycle buffer

and the minimum and maximum amounts of the buffer as speci-

fiedintheAct.

ThefiguresareinEURmillion.

Business cycle buffer

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Amount 543 1,272

Maximum amount 1,218 1,726

Minimum amount -1,218 -1,726

106Financial statements 2025 Notestothefinancialstatements

5 UNEMPLOYMENT INSURANCE CONTRIBUTIONS

ThefiguresareinEURthousand.

Unemployment insurance contributions by

contribution type

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Employer’s unemployment insurance contributions

Employer’s insurance contributions 569,701 763,976

Training compensation reimbursements -14,576 -11,513

Training compensation settlements paid by the

Ministry of Finance 14,576 11,513

Employer’s insurance contributions, co-owners 653 1,018

Total 570,354 764,994

Employee’s unemployment insurance contributions

Employee’s insurance contributions 605,549 803,672

Employee’s insurance contributions, co-owners 979 1,630

Total 606,528 805,302

Collection fee income

Interest on overdue employer contributions 194 366

Interest on overdue employee contributions 450 2

Collection fee income 274 530

Total 918 898

Unemployment insurance contributions by

contribution type

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Employer’s liability components and transition security contributions

Liability components 5,687 7,484

Transition security contributions 20,771 16,405

Accruals 1,966 -207

Total 28,424 23,682

Deductions under the Employment Contracts Act (ECA)

Deductions and lay-off income under ECA 850 855

Settlement to the Ministry of Social Affairs and

Health -453 -297

Total 398 559

Contributions from the Ministry of Social Affairs and Health and municipalities

Earnings-related unemployment allowance

Ministry of Social Affairs and Health 602,396 727,940

Earnings-related unemployment allowance

municipalities 95,076 0

Job alternation compensation 1,150 20,063

Equalisation payment for the previous year 610 -1,059

Adulteducationbenefits 1,067 4,772

Total 700,299 751,716

Total unemployment insurance contributions 1,906,921 2,347,151

107Financial statements 2025 Notestothefinancialstatements

6 FINANCING CONTRIBUTIONS PAID

ThefiguresareinEURthousand.

Financing contributions

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Employment Fund contributions paid to unemployment funds

Other earnings-related unemployment

allowance

-637,010 -696,049

Additional days of allowance

-114,462 -126,484

Transition security allowance

-13,297 -12,237

Lay-off allowance

-287,166 -368,640

Job alternation compensation

-1,507 -26,836

Compensation for administrative expenses

-8,646 -9,400

Equalisation payment for the previous year

-777 1,557

Total -1,062,866

-1,238,089

Government and municipal contributions paid to unemployment funds

Other earnings-related unemployment

allowance

-684,319 -714,104

Job alternation compensation

-1,150 -20,063

Unemployment allowance/entrepreneurs

-6,370 -6,470

Compensation for administrative expenses

-6,782 -7,366

Equalisation payment for the previous year

-610 1,057

Total -699,231

-746,946

Finnish Centre for Pensions

Equalisation payment for the previous year

-1,868 -8,627

Paymentforthecurrentfinancialperiod

-656,635 -713,566

Total

-658,503 -722,193

State Pension Fund

Equalisation payment for the previous year

-342 -266

Paymentforthecurrentfinancialperiod

-9,329 -9,427

Total

-9,672 -9,693

Financing contributions

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Kela

Equalisation payment for the previous

year

-1 0

Basic income security, additional

component, employment programme

additionalbenefit

-94,000 -167,300

Kela transition security allowance

-263 -200

Total -94,263

-167,500

Adult education benefits

Scholarshipsforqualifiedemployees

-60 -9,555

Adult education allowance

-76,964 -202,655

Collectionexpensesforbenefits

-3 -4

Total -77,027

-212,214

Ministry of Economic Affairs and Employment

Equalisation payment for the previous

year

11 0

Paymentforthecurrentfinancialperiod

-29,923 -26,674

Keha transition security training 106

-5,134

Total

-29,806 -31,808

Employment areas

Transition security training

-5,204 0

Total

-5,204 0

Member State invoicing for unemployment security

Invoiced by Member States

-214 -164

Invoiced by the Fund

55 54

Total

-159 -109

Total financing contributions paid

-2,636,731 -3,128,553

108Financial statements 2025 Notestothefinancialstatements

7 ADMINISTRATIVE EXPENSES

ThefiguresareinEURthousand.

Administrative expenses by expense

type

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024*

Personnel expenses

Wages,bonuses,andbenefits -9,854 -11,074

Pensionexpenses–defined

contributionplans -1,766 -1,921

Socialsecuritycontributions -280 -267

Total -11,900 -13,262

Other administrative expenses*

ITexpenses -14,773 -15,849

Purchases of services -2,225 -2,259

Other personnel expenses -748 -761

Expensesforofficepremises -263 -254

Statutory audit -111 -93

Other administrative expenses -434 -475

Amortisation -968 -1,208

Total -19,521 -20,898

Total administrative expenses -31,421 -34,161

*The grouping of other administrative expenses and its content have been up-

dated,andthereferencefiguresfor2024havealsobeenregrouped.

Number of personnel

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Average number of personnel 130 165

Number of personnel at the end of the

period 124 139

Permanent employees 120 136

Fixed-term employees 4 3

109Financial statements 2025 Notestothefinancialstatements

8 FINANCING COSTS

ThefiguresareinEURthousand.

Financing costs by expense type 1 Jan–31 Dec 2025 1 Jan–31 Dec 2024

Loan financing expenses

Revolvingcreditfacilityfees

-785 -915

Accrued expenses from loans

-79 -79

Interestexpensesfromloans

-416 -416

Total loan financing expenses

-1,280 -1,410

Interest on the contributions paid to the Finnish Centre

for Pensions

-48 -35

Interest on the contributions paid to the State Pension

Fund

0 0

Total financing costs

-1,328 -1,445

110Financial statements 2025 Notestothefinancialstatements

9 PROPERTY, PLANT AND EQUIPMENT

ThefiguresareinEURthousand.

Changes in property, plant and equipment IFRS 16 Right-of-use asset Total

Acquisition costs, 1 Jan 2025 4,670 4,670

Additions 1,320 1,320

Decreases -1,190 -1,190

Acquisition costs, 31 Dec 2025 4,800 4,800

Accumulated depreciation, 1 Jan 2025 1,919 1,919

Depreciation during the period 605 605

Accrued depreciation of decreases -59 -59

Accumulated depreciation, 31 Dec 2025 2,465 2,465

Book value, 1 Jan 2025 2,752 2,752

Book value, 31 Dec 2025 2,335 2,335

Changes in property, plant and equipment IFRS 16 Right-of-use asset Total

Acquisition costs, 1 Jan 2024 4,431 4,431

Additions 239 239

Decreases 0 0

Acquisition costs, 31 Dec 2024 4,670 4,670

Accumulated depreciation, 1 Jan 2024 1,221 1,221

Depreciation during the period 698 698

Accrued depreciation of decreases 0 0

Accumulated depreciation, 31 Dec 2024 1,919 1,919

Book value, 1 Jan 2024 3,210 3,210

Book value, 31 Dec 2024 2,752 2,752

111Financial statements 2025 Notestothefinancialstatements

10 INTANGIBLE ASSETS

ThefiguresareinEURthousand.

Changes in intangible assets Software Software development expenses Intangible assets in progress* Total

Acquisition costs, 1 Jan 2025 910 14,981 0 15,891

Additions 0 0 0 0

Transfers between items 0 0 0 0

Acquisition costs, 31 Dec 2025 910 14,981 0 15,891

Accumulated depreciation, 1 Jan 2025 910 14,617 0 15,527

Depreciation during the period 0 364 0 364

Accumulated depreciation, 31 Dec 2025 910 14,981 0 15,891

Book value, 1 Jan 2025 0 363 0 363

Book value, 31 Dec 2025 0 0 0 0

Changes in intangible assets Software Software development expenses Intangible assets in progress* Total

Acquisition costs, 1 Jan 2024 910 14,981 0 15,891

Additions 0 0 0 0

Transfers between items 0 0 0 0

Acquisition costs, 31 Dec 2024 910 14,981 0 15,891

Accumulated depreciation, 1 Jan 2024 910 14,107 0 15,017

Depreciation during the period 0 510 0 510

Accumulated depreciation, 31 Dec 2024 910 14,617 0 15,527

Book value, 1 Jan 2024 0 872 0 872

Book value, 31 Dec 2024 0 363 0 363

*The item ‘Intangible assets in progress’ consists of capitalised development costs, giving rise to an internally generated intangible asset.

There were no capitalised development costs in 2025.

112Financial statements 2025 Notestothefinancialstatements

11 RECEIVABLES AND PAYABLES FROM UNEMPLOYMENT INSURANCE CONTRIBUTIONS

ThefiguresareinEURthousand.

Receivables from unemployment insurance contributions 31 Dec 2025 31 Dec 2024

Receivables from employer’s unemployment insurance contribution

3,035 15,123

Receivables from employer’s unemployment insurance contribution,

credit loss provision

- 2,554 - 2,815

Receivables from employee’s unemployment insurance contribution

5,876 6,986

Receivables from employee’s unemployment insurance contribution,

credit loss provision

- 4,815 - 5,439

Overdue contribution and collection fee receivables

466 483

Overdue contribution and collection fee receivables, credit loss provision

- 276 - 305

Receivables from unemployment insurance contributions

1,732 14,032

Deferredunemploymentinsurancecontributionreceivables

298,783 401,914

Total unemployment insurance contribution receivables

300,515 415,947

Unemployment insurance contribution liabilities 31 Dec 2025 31 Dec 2024

Prepayments

2 0

Refunds

443 307

Total unemployment insurance contribution liabilities

445 307

113Financial statements 2025 Notestothefinancialstatements

12 LIFETIME EXPECTED CREDIT LOSSES FROM THE UNEMPLOYMENT INSURANCE CONTRIBUTION

RECEIVABLES AND FROM THE ADULT EDUCATION BENEFITS TO BE RECOVERED (IFRS 9)

ThefiguresareinEURthousand.

Changes in

expected credit

losses

Receivables

from employer’s

unemployment

insurance contribution

Receivables from

employee’s unemployment

insurance contribution

Overdue contribution and

collection fee receivables for

unemployment insurance

contributions

Liability component

and receivables

specified in ECA

Adult education benefits

to be recovered Total

1 Jan 2025

-2,815 -5,439 -305 -295 -185 -9,039

Change

261 624 28 -135 84 864

31 Dec 2025

-2,554 -4,815 -276 -429 -101 -8,175

Changes in

expected credit

losses

Receivables

from employer’s

unemployment

insurance contribution

Receivables from

employee’s unemployment

insurance contribution

Overdue contribution and

collection fee receivables for

unemployment insurance

contributions

Liability component

and receivables

specified in ECA

Adult education benefits to

be recovered Total

1 Jan 2024

-2,119 -4,412 -410 -271 -221 -7,433

Change

-696 -1,027 105 -23 35 -1,606

31 Dec 2024

-2,815 -5,439 -305 -295 -185 -9,039

114Financial statements 2025 Notestothefinancialstatements

13 OTHER RECEIVABLES

ThefiguresareinEURthousand.

Current other receivables 31 Dec 2025 31 Dec 2024

Receivablesfromunemploymentfunds

6,526 10,483

Transition security receivables

3,997 2,421

Adulteducationallowancereceivables

1,313 1,288

Adulteducationbenefits,creditlossprovision

-101 -185

Receivables from the Government related to training compensation

14,576 0

Employer’sliabilitycomponentreceivablesandcompensationbasedontheEmploymentContractsAct

718 877

LiabilitycomponentandreceivablesspecifiedinECA,creditlossprovision

-429 -295

ReceivablesfromtheMinistryofSocialAffairsandHealth

5,746 12,035

ReceivablesfromKela

280 728

Receivablesfrommunicipalities

8,706 0

Prepayments

290 533

Securitiesinsettlement

9,926 0

Taxassets

14 9

Total current other receivables

51,562 27,895

Total other receivables

51,562 27,895

115Financial statements 2025 Notestothefinancialstatements

14 NET FAIR VALUE GAINS FROM INVESTMENTS

ThefiguresareinEURthousand.

Types of income and expenses 1 Jan–31 Dec 2025 1 Jan–31 Dec 2024

Dividendincome

2,143 2,161

Gainsondisposals

21,211 14,090

Otherincome

1,578 3,519

Net interest income

19,254 35,807

Net foreign exchange gains and losses

-69 0

Net change in value

-4,726 17,773

Lossesondisposals

-5,945 -4,614

Otherexpenses

-297 -429

Total net gains on investments

33,148 68,308

116Financial statements 2025 Notestothefinancialstatements

15 INVESTMENT ASSETS

Investmentsinfinancialassetshavebeendesignatedasfinancial

assetsatfairvaluethroughprofitandloss,andaremeasuredatfair

value. Measurement of these assets is primarily based on either

quoted prices or valuations based on available market data. Finan-

cial instruments carried at fair value have been divided into three

hierarchy levels based on whether they are traded in active mar-

kets, and to what extent the inputs are based on observable market

data as follows:

Level 1 The valuation is based on quoted prices in active markets

foridenticalfinancialassetsandliabilities.

Level 2 The inputs used in valuations are also based, directly or

indirectly, using valuation techniques on observable inputs other

than those at level 1.

Level 3 The valuation is based on information other than observa-

ble market data.

117Financial statements 2025 Notestothefinancialstatements

Investments by financial instrument class divided into fair value hierarchy levels

Noreclassificationshavebeenmadebetweenthehierarchylevelsduringthefinancialperiod.ThefiguresareinEURthousand.

Financial instrument classes,

31 Dec 2025 Level 1 Level 2 Level 3 Total

Government and municipal bonds 173,356 0 0 173,356

Bank bonds 127,225 0 0 127,225

Corporate bonds 124,702 0 0 124,702

Investments in funds and equities 140,298 0 0 140,298

Mezzanine funds 0 0 179 179

Deposits 0 46,246 0 46,246

Certificatesofdeposit 0 0 0 0

Municipal papers 0 0 0 0

Commercial papers 0 42,236 0 42,236

Alternative investments 0 0 87,250 87,250

Total 565,581 88,482 87,429 741,492

Financial instrument classes,

31 Dec 2024 Level 1 Level 2 Level 3 Total

Government and municipal bonds 244,324 19,687 0 264,011

Bank bonds 269,667 0 0 269,667

Corporate bonds 220,259 0 0 220,259

Investments in funds and equities 200,762 0 0 200,762

Mezzanine funds 0 0 199 199

Deposits 0 94,447 0 94,447

Certificatesofdeposit 0 99,589 0 99,589

Municipal papers 0 1,995 0 1,995

Commercial papers 0 140,818 0 140,818

Alternative investments 0 0 103,157 103,157

Total 935,012 356,536 103,356 1,394,904

118Financial statements 2025 Notestothefinancialstatements

Changesinlevel3financialassetsmeasuredatfairvalue.ThefiguresareinEURthousand.

Financial instrument

classes 1 Jan 2025 Unrealised profit/loss Realised profit/loss Purchases Sales 31 Dec 2025

Mezzanine funds 199 -20 0 0 0 179

Alternative investments 103,157 -1,085 420 0 -15,242 87,250

Total 103,356 -1,105 420 0 -15,242 87,429

Financial instrument

classes 1 Jan 2024 Unrealised profit/loss Realised profit/loss Purchases Sales 31 Dec 2024

Mezzanine funds 829 1,470 -1,704 0 -396 199

Alternative investments 82,504 -994 323 21,532 -208 103,157

Total 83,333 476 -1,381 21,532 -604 103,356

Deposits,certificatesofdeposit,commercialpapersandmunicipal

papers at level 2havebeenvaluedusingthediscountedcashflow

method based on the Euribor or swap curve and on the forward

rate, insofar as elements of foreign currencies are involved. Based

on the management’s judgement, the discount factor has been ad-

justed for the effect of changes in the credit risk of the investment.

However, the adjustment has not had any material impact.

Investmentsclassifiedat level 3 are mezzanine funds that are

valued based on the valuations prepared by the issuer. Investment

funds have been measured at the net asset value of the fund as re-

ported by the fund manager as of the reporting date, and they have

beenclassifiedaslevel1,2or3assetsbytheirmarketactivityand

marketability. Equity investments are quoted on the Helsinki Stock

Exchange,andtheyhavebeenclassifiedatlevel1.Theamountof

equity investments is minor.

119Financial statements 2025 Notestothefinancialstatements

16 CASH AND CASH EQUIVALENTS

ThefiguresareinEURthousand.

Cash and cash equivalents 31 Dec 2025 31 Dec 2024

Bankdeposits

115,776 118,538

Total cash and cash equivalents

115,776 118,538

17 LOANS

ThefiguresareinEURthousand.

Long-term loans 31 Dec 2025 31 Dec 2024

EmploymentFundbonds

599,398 599,106

Total long-term loans

599,398 599,106

120Financial statements 2025 Notestothefinancialstatements

18 OTHER LIABILITIES

ThefiguresareinEURthousand.

Other liabilities 31 Dec 2025 31 Dec 2024

Accountspayable

4,662 2,261

Accruals

2,477 2,485

Accruals of adult education allowance

3,122 12,574

Accrualsofliabilitycomponentincome

7,586 9,606

FinnishCentreforPensions,capitalaccruals

5,635 66

Ministry of Economic Affairs and Employment, pay

security accruals

29,923 26,674

Ministry of Social Affairs and Health, liability

443 19,391

ECAMinistryshare

453 418

Administrativeexpenseaccruals

572 644

Liabilities to employment areas

213 0

Liabilities to the State Pension Fund

1,901 1,999

Liabilities KEHA Centre

0 1,731

Liabilitiestounemploymentfunds

6,635 3,099

Holidaypayaccruals

1,369 1,392

Leaseliability

2,536 2,930

Adulteducationbenefits,withholdingtaxliability

1,387 3,380

Interestaccruals

0 0

Total other liabilities

68,914 88,651

121Financial statements 2025 Notestothefinancialstatements

19 LIABILITIES AND RECEIVABLES NOT RECOGNISED

IN THE STATEMENT OF NET POSITION

ThefiguresareinEURthousand.

Investment commitments 31 Dec 2025 31 Dec 2024

Committed capital

2,250 2,250

Realised

-2,169 -2,169

Total investment commitments

81 81

Investmentfundsacquirecallinvestmentsbasedonthefinancing

needs of the investment fund. The commitments have no maturity

date.

Leases

TheFundhasrentedofficeandwarehousepremises,telephone

booths and two cars on non-cancellable lease contracts. The re-

maining lease periods for the cars are 2 years and 10 months, and

1 year and 8 months. At the end of the year, the remaining lease

period for the telephone booths was 1 year and 2 months.

Some of the premises could be released by cancelling the respec-

tive part of the contract effective during 2025. The Fund used its

right to cancel the contract in 2025 by giving up some of its prem-

ises and at the same time, the estimate of the use of the premises

was updated.The Fund now estimates that it will use the premises

until 31 December 2030. As a result, the remaining lease period of

thepremisesonthebalancesheetdatewasfiveyears,afterwhich

the contract can be cancelled with a period of notice of 9 months.

The Fund also has a subordinated right to lease vacant premises

under the terms of the lease contract.

122Financial statements 2025 Notestothefinancialstatements

20 RELATED PARTIES

The following parties are considered as related parties of Employment

Fund: members and deputy members of the Board of Directors and the

Supervisory Board, Managing Director, Deputy Managing Director and

the members of the Management Group as well as the family members

or other close relatives of the above persons or the organisations con-

trolled by them. Employment Fund’s Supervisory Board is appointed

by the Government on the proposal of the labour market parties. The

Supervisory Board prepares the proposal for the level of unemployment

insurance contributions in its autumn meeting. The Board of Directors

is appointed by the Supervisory Board. The operations of Employment

Fund are supervised by the Financial Supervisory Authority. The Min-

istry of Social Affairs and Health also has the right to receive informa-

tion about the Fund’s operations.

The government contributions payable to the unemployment funds

are received from the Ministry of Social Affairs and Health. The Fund

regularly pays contributions to the Finnish Centre for Pensions, State

Pension Fund, Social Insurance Institution of Finland and the Ministry

of Economic Affairs and Employment.

The regulations on related-party transactions set out in the Limited

Liability Companies Act are not applicable to Employment Fund’s oper-

ations. However, Employment Fund complies with IFRS standards and

guidelinesregardingrelated-partytransactions(IAS24).Therelated

parties of Employment Fund comprise the members of the Supervi-

sory Board, members of the Board of Directors, the Managing Director,

the main auditor, the members of the Management Group, and their

spouses, trustees, and controlled undertakings. Transactions involv-

ing related parties are handled in accordance with the guidelines on

related-party transactions approved by the Board of Directors. There

were no major related-party transactions in 2025.

Thesalaries,bonusesandbenefitspaidtotherelatedpartiesaresum-

marisedinthetablebelow.ThefiguresareinEURthousandandthey

do not include social security contributions. More detailed breakdowns

by each body are included in the section presenting Employment

Fund’s remuneration report for 2025.

Fees and other benefits paid to the Board of

Directors and the Supervisory Board

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Salaries,bonusesandbenefits

168 170

Pensionexpenses–definedcontribution

plans

30 30

Total

197 200

Remuneration of the Management Group

members (excluding the Managing Director)

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Salaries,bonusesandbenefits

734 569

Pensionexpenses–definedcontribution

plans

109 134

Total

844 703

Managing Director’s salaries and bonuses

1 Jan–31 Dec

2025

1 Jan–31 Dec

2024

Salaries,bonusesandbenefits

202 190

Pensionexpenses–definedcontribution

plans

36 34

Total

239 224

123Financial statements 2025

SIGNATURES ON THE REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS

ConfirmationoftheBoardofDirectorsandtheManagingDirector

Weconfirmthat

• -thefinancialstatementspreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS)asadoptedbythe

EuropeanUniongiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossoftheFund.

• - the management report includes a fair review of the development and performance of the business and the position of the Fund and

the undertakings, together with a description of the principal risks and uncertainties that the Fund faces.

Helsinki 24 February 2026 Saana Siekkinen, chair

Vesa Rantahalvari, vice chair

Tuomas Aarto

Taina Ahvenjärvi

Jarkko Eloranta

Minna Etu-Seppälä

Else-Mai Kirvesniemi

Janne Makkula

Henrika Nybondas-Kangas

Pekka Piispanen

Juho Ruskoaho

Heikki Taulu

Taina Vallander

Pirjo Väänänen

Karo Nukarinen, Managing Director

Signatures

124Financial statements 2025

AUDITOR’S STATEMENT

An audit report has been provided today.

Helsinki 25 February 2026

KPMG Oy Ab

Juha-Pekka Mylén

Authorised Public Accountant, KHT

Auditor’s statement

125Financial statements 2025

Auditor’s Report

To the Supervisory Board of the Employment Fund

REPORT ON THE AUDIT OF THE

FINANCIAL STATEMENTS

Opinion

Wehaveauditedthefinancialstatements

of the Employment Fund (business iden-

tity code 1098099-7) for the year ended 31

December,2025.Thefinancialstatements

comprise the statement of net position, the

statement of changes in net position and

statementofcashflowsandnotes,includ-

ing material accounting policy information.

Inouropinionthefinancialstatements

giveatrueandfairviewofthefund’sfinan-

cialperformanceandfinancialpositionin

accordance with IFRS Accounting Stand-

ards as adopted by the EU and comply with

statutory requirements.

Our opinion is consistent with the addi-

tional report submitted to the Board of

Directors.

Basis for Opinion

We conducted our audit in accordance with

good auditing practice in Finland. Our re-

sponsibilities under good auditing practice

are further described in the Auditor’s Re-

sponsibilities for the Audit of the Financial

Statements section of our report.

We are independent of the fund in accord-

ance with the ethical requirements that are

applicable in Finland and are relevant to

ouraudit,andwehavefulfilledourother

ethical responsibilities in accordance with

these requirements.

We have not provided any non-audit servic-

es to the fund.

We believe that the audit evidence we have

obtainedissufficientandappropriateto

provide a basis for our opinion.

Materiality

Thescopeofourauditwasinfluencedby

our application of materiality. The material-

ity is determined based on our professional

judgement and is used to determine the na-

ture, timing and extent of our audit proce-

duresandtoevaluatetheeffectofidentified

misstatementsonthefinancialstatements

as a whole. The level of materiality we set is

based on our assessment of the magnitude

of misstatements that, individually or in

aggregate, could reasonably be expected to

haveinfluenceontheeconomicdecisions

oftheusersofthefinancialstatements.We

have also taken into account misstatements

and/or possible misstatements that in our

opinion are material for qualitative reasons

fortheusersofthefinancialstatements.

Auditor’s report

126Financial statements 2025

Key Audit Matters

Key audit matters are those matters that, in

our professional judgment, were of most sig-

nificanceinourauditofthefinancialstate-

ments of the current period. These matters

were addressed in the context of our audit of

thefinancialstatementsasawhole,andin

forming our opinion thereon, and we do not

provide a separate opinion on these matters.

Thesignificantrisksofmaterialmisstate-

ment referred to in the EU Regulation No

537/2014 point (c) of Article 10(2) are included

in the description of key audit matters below.

We have also addressed the risk of man-

agement override of internal controls. This

includes consideration of whether there was

evidence of management bias that represent-

ed a risk of material misstatement due to

fraud.

THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE

AUDIT

Determination and collection of unemployment insurance contributions (note 5 to the financial statements)

• The determination and collection of unemploy-

ment insurance contributions by the Employment

Fund is based on legislation. The unemployment

insurance contributions which have been present-

ed in the statement of changes in net position for

the year 2025, amounted to EUR 1.2 billion.

• The unemployment insurance contributions

must be determined in such a way so that the

Employment Fund is able to meet the obligations

being responsible for. Unemployment insurance

contributions are determined once per calendar

year, in the preceding year.

• The Employment Fund determines the contribu-

tion amounts and makes prepayment decisions

based on the contribution rates which have been

ratifiedbyParliamentandtheEmploymentFund

collects these prepayments.

• The Employment Fund monitors defaults concern-

ing the obligation to pay unemployment insurance

contributions.

• As the amount of unemployment insurance

contributionsissignificantinthefinancialstate-

ments and the determination and collection of the

contributions is subject to legal requirements, it

hasbeenidentifiedasakeyauditmatter.

• Our audit has included assessing the process to

determine the unemployment insurance contribu-

tions and evaluating the control environment.

• We have evaluated the process of invoicing, col-

lecting and managing unemployment insurance

contributions and have performed substantive

testing on chains of transactions.

• We have assessed and tested the controls for

determining and receiving contributions and for

monitoring of payments received.

• Wehaveverifiedthecorrectnessoftherelevant

payment rates applied in the system environment

of the Employment Fund.

• We gained an understanding of the accrual-based

accounting for unemployment insurance

contributionsinthefinancialstatements,andthe

calculation of impairment losses on receivables

for unemployment insurance contributions.

• The audit has also included testing of the controls

inplaceovertheflowofkeydata,changeman-

agement and the transfer of information between

systems.

Auditor’s report

127Financial statements 2025

Responsibilities of the Board of Directors

and the Managing Director for the Finan-

cial Statements

The Board of Directors and the Managing

Director are responsible for the preparation

ofconsolidatedfinancialstatementsthat

give a true and fair view in accordance with

IFRS Accounting Standards as adopted by

theEU,andoffinancialstatementsthatgive

a true and fair view in accordance with the

laws and regulations governing the prepa-

rationoffinancialstatementsinFinland

and comply with statutory requirements.

The Board of Directors and the Managing

Director are also responsible for such inter-

nal control as they determine is necessary

toenablethepreparationoffinancialstate-

ments that are free from material misstate-

ment, whether due to fraud or error.

Inpreparingthefinancialstatements,the

Board of Directors and the Managing Direc-

tor are responsible for assessing the fund’s

ability to continue as a going concern,

disclosing, as applicable, matters relating

to going concern and using the going con-

cernbasisofaccounting.Thefinancial

statements are prepared using the going

concern basis of accounting unless there is

an intention to liquidate the fund or cease

operations, or there is no realistic alterna-

tive but to do so.

Auditor’s Responsibilities for the

Audit of the Financial Statements

Our objectives are to obtain reasonable

assuranceaboutwhetherthefinancial

statements as a whole are free from mate-

rial misstatement, whether due to fraud or

error, and to issue an auditor’s report that

includes our opinion. Reasonable assur-

ance is a high level of assurance, but is

not a guarantee that an audit conducted

in accordance with good auditing practice

will always detect a material misstatement

when it exists. Misstatements can arise

from fraud or error and are considered

material if, individually or in the aggregate,

theycouldreasonablybeexpectedtoinflu-

ence the economic decisions of users taken

onthebasisofthefinancialstatements.

As part of an audit in accordance with good

auditing practice, we exercise professional

judgment and maintain professional skepti-

cism throughout the audit. We also:

• Identify and assess the risks of

materialmisstatementofthefinancial

statements, whether due to fraud

or error, design and perform audit

procedures responsive to those risks,

and obtain audit evidence that is

sufficientandappropriatetoprovidea

basis for our opinion. The risk of not

detecting a material misstatement

resulting from fraud is higher than for

one resulting from error, as fraud may

involve collusion, forgery, intentional

omissions, misrepresentations, or the

override of internal control.

• Obtain an understanding of internal

control relevant to the audit in order

to design audit procedures that are

appropriate in the circumstances, but

not for the purpose of expressing an

opinion on the effectiveness of the

fund’s internal control.

Auditor’s report

128Financial statements 2025

• Evaluate the appropriateness of

accounting policies used and the

reasonableness of accounting estimates

and related disclosures made by

management.

• Conclude on the appropriateness of the

Board of Directors’ and the Managing

Director’s use of the going concern basis

of accounting and based on the audit

evidence obtained, whether a material

uncertainty exists related to events or

conditionsthatmaycastsignificant

doubt on the fund’s ability to continue

as a going concern. If we conclude

that a material uncertainty exists, we

are required to draw attention in our

auditor’s report to the related disclosures

inthefinancialstatementsor,ifsuch

disclosures are inadequate, to modify

our opinion. Our conclusions are based

on the audit evidence obtained up to the

date of our auditor’s report. However,

future events or conditions may cause

the fund to cease to continue as a going

concern.

• Evaluate the overall presentation,

structureandcontentofthefinancial

statements, including the disclosures,

andwhetherthefinancialstatements

represent the underlying transactions

andeventssothatthefinancial

statements give a true and fair view.

We communicate with those charged with

governance regarding, among other mat-

ters, the planned scope and timing of the

auditandsignificantauditfindings,includ-

inganysignificantdeficienciesininternal

control that we identify during our audit.

We also provide those charged with govern-

ance with a statement that we have com-

plied with relevant ethical requirements

regarding independence, and communicate

with them all relationships and other mat-

ters that may reasonably be thought to bear

on our independence, and where applicable,

related safeguards.

From the matters communicated with

those charged with governance, we de-

termine those matters that were of most

significanceintheauditofthefinancial

statements of the current period and are

therefore the key audit matters. We describe

these matters in our auditor’s report unless

law or regulation precludes public disclo-

sure about the matter or when, in extremely

rare circumstances, we determine that a

matter should not be communicated in our

report because the adverse consequences

of doing so would reasonably be expected

tooutweighthepublicinterestbenefitsof

such communication.

Auditor’s report

129Financial statements 2025

Other Reporting Requirements

Information on our audit engagement

Employment Fund was established in 2019

and became a public interest entity during

thefinancialyear2020.Wehavebeenthe

fund’s auditors since its establishment.

Other Information

The Board of Directors and the Managing

Director are responsible for the other infor-

mation. The other information comprises

the report of the Board of Directors and the

information included in the Annual Report,

butdoesnotincludethefinancialstate-

ments or our auditor’s report thereon.

Ouropiniononthefinancialstatements

does not cover the other information.

Inconnectionwithourauditofthefinan-

cial statements, our responsibility is to read

theotherinformationidentifiedaboveand,

in doing so, consider whether the other

information is materially inconsistent with

thefinancialstatementsorourknowledge

obtained in the audit, or otherwise appears

to be materially misstated. With respect

to the report of the Board of Directors, our

responsibility also includes considering

whether the report of the Board of Directors

has been prepared in compliance with the

applicable provisions.

In our opinion, the information in the report

of the Board of Directors is consistent with

theinformationinthefinancialstatements

and the report of the Board of Directors has

been prepared in compliance with the ap-

plicable provisions.

If, based on the work we have performed,

we conclude that there is a material mis-

statement of the other information, we are

required to report that fact. We have noth-

ing to report in this regard.

Helsinki, 25 February 2026

KPMGOYAB

Audit Firm

Juha-Pekka Mylén

Authorised Public Accountant, KHT

Auditor’s report

130Financial statements 2025 Independent Auditor’s Report on the ESEF Financial Statements of Employment Fund

Independent Auditor’s Report on the ESEF Financial

Statements of Employment Fund

(Translation of the Finnish original)

To the Board of Directors of

Employment Fund

We have performed a reasonable assurance

engagementonthefinancialstatements

7437002N0BQXM1JQUP81-2025-12-31-0-fi.

xhtml of Employment Fund (Business ID

1098099-7) that have been prepared in ac-

cordance with the Commission’s regulatory

technicalstandardforthefinancialyear

ended 31.12.2025.

RESPONSIBILITIES OF THE

BOARD OF DIRECTORS AND

THE MANAGING DIRECTOR

The Board of Directors and the Managing

Director are responsible for the preparation

of the company’s report of the Board of Di-

rectorsandfinancialstatements(theESEF

financialstatements)insuchawaythat

they comply with the requirements of the

Commission’s regulatory technical stand-

ard. This responsibility includes:

• preparingtheESEFfinancialstatements

in XHTML format in accordance with

Article 3 of the Commission’s regulatory

technical standard and

• ensuring the consistency between

theESEFfinancialstatementsandthe

auditedfinancialstatements.

The Board of Directors and the Managing

Director are also responsible for such inter-

nal control as they determine is necessary

toenablethepreparationofESEFfinancial

statements in accordance with the require-

ments of the Commission’s regulatory tech-

nical standard.

AUDITOR’S INDEPENDENCE AND

QUALITY MANAGEMENT

We are independent of the company in ac-

cordance with the ethical requirements that

are applicable in Finland and are relevant

to the engagement we have performed,

andwehavefulfilledourotherethical

responsibilities in accordance with these

requirements.

The auditor applies International Standard

on Quality Management (ISQM) 1, which

requiresthefirmtodesign,implementand

operate a system of quality management

including policies or procedures regard-

ing compliance with ethical requirements,

professional standards and applicable legal

and regulatory requirements.

131Financial statements 2025

AUDITOR’S RESPONSIBILITIES

Our responsibility is to, in accordance with

Chapter 7, Section 8 of the Securities Mar-

ketsAct,provideassuranceonthefinancial

statements that have been prepared in ac-

cordance with the Commission’s regulatory

technical standard.

Our responsibility is to indicate in our

opinion to what extent the assurance has

been provided. We conducted a reasonable

assurance engagement in accordance with

International Standard on Assurance En-

gagements (ISAE) 3000.

The engagement includes procedures to

obtain evidence on:

• whetherthefinancialstatementsthat

areincludedintheESEFfinancial

statements are, in all material respects,

in accordance with the requirements of

Article 4 of the Commission’s regulatory

technical standard and

• whether there is consistency between

theESEFfinancialstatementsandthe

auditedfinancialstatements.

The nature, timing and extent of the se-

lected procedures depend on the auditor’s

judgment. This includes an assessment of

the risk of a material deviation due to fraud

or error from the requirements of the Com-

mission’s regulatory technical standard.

We believe that the evidence we have

obtainedissufficientandappropriateto

provide a basis for our opinion.

OPINION

Our opinion pursuant to Chapter 7, Section

8 of the Securities Markets Act is that the

company’sfinancialstatementsthatare

includedintheESEFfinancialstatements

of Employment Fund 7437002N0BQX-

M1JQUP81-2025-12-31-0-fi.xhtmlforthe

financialyearended31.12.2025havebeen

prepared, in all material respects, in accord-

ance with the requirements of the Commis-

sion’s regulatory technical standard.

Ouropinionontheauditofthefinancial

statements of Employment Fund for the

financialyearended31.12.2025hasbeen

expressed in our auditor’s report dated

25.2.2026. With this report we do not ex-

pressanopinionontheauditofthefinan-

cial statements nor express another assur-

ance conclusion.

Helsinki 23 March 2026

KPMGOYAB

Audit Firm

Juha-Pekka Mylén

Authorised Public Accountant, KHT

Independent Auditor’s Report on the ESEF Financial Statements of Employment Fund