Sweden Finland Austria

Documentation of APW calculations for Finland 1995,
correct' data
Single APW:
The gross wage of the APW in 1995 is from 
The Tax/Benefit Position of
Employees', OECD, 1996 edition.
1995
Non-insured
1)
Gross wage
132,533 FIM
Tax and social security
50,419 FIM
2)
Disposable income
82,114 FIM
APW-couple: The husband has the same gross wage as the single APW, the wife has 50
per cent of that income. There are no children.
1995
Non-insured
1)
Gross wage
198,800 FIM
Tax and social security
68,495 FIM
Disposable income
130,305 FIM
1)
Unemployment insurance (the earningsrelated component) is voluntary in Finland. In the official APW
calculation for Finland in ’The Tax/Benefit Position of Production Workers’ there is no deduction in the
disposable income for membership fees. This was also the case for the Swedish APW, when unemploy-
ment insurance was voluntary in Sweden. This procedure has been continued in this study even if it is
not strictly correct. The error is, however, marginal.
2)
Cf. the annex for a documentation.
’Standard’ income events
1.
Ill for one week. Single APW
The gross wage is reduced by 1/52, i.e. 2,549 FIM. In Finland there is a waiting
period of 9 weekdays, so there is no compensation at all from the insurance scheme
for the first week of illness.
The gross compensation percentage is 0. When the APW is ill for one week his or
her disposable income is 80,919 FIM.

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The decrease in disposable income compared to the situation without illness is
82,114 - 80,919 = 1,195 FIM or 1.5 per cent.
In Finland labour market agreements are covering the relatively long waiting period.
In the usual situation the employee therefore receives wages during short term
illness. In some agreements wages will be paid during illness for 1 to 2 months.