Government measures to support general incomes policy settlement
(Original Finnish released on 25 October 2013)
On 30 August, the Government announced a set of measures to be taken in the event of a general incomes policy settlement. It let it be known then that it would make its final assessment once a collective agreement had been found to be sufficiently comprehensive in the sectoral negotiations. The Government now endorses the view of the labour market confederations that a general national incomes policy agreement has indeed been reached.
The Government considers this agreement extremely important. It will provide a considerable boost to employment, competitiveness and growth.
Prime Minister Katainen is very pleased with the responsibility and willingness to agree demonstrated by the labour market organisations.
- This is a victory for Finnish workplaces as – especially in the short term – the reached agreement will play a significant part in Finland's competitiveness and employment. Here we see business competitiveness going hand in hand with people's purchasing power.
According to Minister of Finance Jutta Urpilainen, the comprehensive incomes policy agreement is a victory for the consensus society. She places the agreement in the context of the economic policy measures being taken this autumn.
- This agreement strengthens employment and growth. Taken together with other things the Government is doing, it means we should be able to see green shoots coming through. Employees and employers alike displayed great responsibility and really demonstrated that they could see the big picture.
Government measures to support the comprehensive incomes policy agreement:
- In 2014, there will be a 1.5 per cent adjustment to the basis for income tax on all earnings up to EUR 100,000. In doing so, the Government aims to support purchasing power in conditions of modest pay rises.
- The planned restrictions on the mileage allowance in 2014 will be dropped.
- Fairway dues will be cut by 50 % and tax on rail freight will not be collected in 2015–2017. The measures are in response to the EU sulphur directive that will come into effect in 2015 and the related costs for foreign trade.
- The incomes policy agreement includes EUR 300 ring-fenced unemployment benefit in line with the Government's structural reform programme.
- In the event of unemployment, the waiting period before unemployed persons become eligible for benefits will be cut from seven to five days. The purpose is to improve the attractiveness of short-term employment.
The Government will include the measures which are to come into effect next year in the amendment to the budget proposal for 2014. Decisions on the amendment will be made at government discussions on 19 November 2013.
Inquiries: Martti Hetemäki, State Secretary, tel. + 358 295 530 292; Juha Kirstilä, Special Adviser to the Prime Minister, tel. +358 40 552 8200; and Matti Niemi, Special Adviser to the Minister of Finance, tel. + 358 45 679 1717