Sweden Finland Austria

Documentation of APW calculations for Finland, 1997
Single APW:
The information on the gross wage of the APW in 1997 has been provided
by the 
Government Institute for Economic Research' in Finland.
1997
Non-insured
1)
Gross wage
141,157 FIM
Tax and social security
50,708 FIM
2)
Disposable income
90,449 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.
1997
Non-insured
1)
Gross wage
211,736 FIM
Tax and social security
68,808 FIM
Disposable income
142,928 FIM
1)
Unemployment insurance (the earnings related 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 is also the case for the Swedish APW. 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. 2,715 FIM. In Finland there is a waiting
period of 9 weekdays (after the first day of illness), so there is no compensation at all
from the insurance scheme for the first week of illness. The benefit has no maxi-
mum, the minimum is 0.
The gross compensation percentage is 0. When the APW is ill for one week his or
her disposable income is 89,112 FIM.
The decrease in disposable income compared to the situation without illness is
90,449 - 89,112 = 1,337 FIM or 1.5 per cent.

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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.