Strategic Dimensions: -0,2, 1631, 2519, 1,373 and 0,9680
For 2016 Ministry of Social Affairs and the Health has a budget of 13.0
billion EUR so 24 % of all government spending. It’s a huge amount and it has impact
to our everyday life. Every year is counted wage coefficient, the life expectancy factor and
indexes such as
consumer price index, national pension and employment pension index. The thing whit these figures are
that they might increase, decrease or be freeze. Have you ever thought that which indexes and calculations
have impact on budget or what do the numbers behind it mean?
-0,2
Consumer Price Index describes the price development of the
households resident in Finland owned goods and services. It’s calculated by the
method in which the prices of different commodities are weighted together their
shares of consumption. The inflation was in end of the year 2015 -0,2 %. Why
the figure has remained negative? The reasons for this are for example average housing
loan rates, fuel compared to consumer prices, etc. are lower than year ago.
1631
The National pension Index is determined by the change of consumer price
index. The Social Insurance Institution establishes the index every year and in
2016, the national pension index value was 1631. It’s used for review large
part of the Kela benefits. The year 2016 brings among other things these changes:
- 50€ initial deductible for pharmaceutical product benefit
- Travel allowances deductible rises
- Sickness allowance is reduced from 24.02€ to 23.93€
- Celiac sufferers diet allowance is removed
- Maintenance support is reduced
Earnings-related pension index pensions in payment are reviewed.
Earnings-related pension change in the share of wages in calculating the index
is 20 per cent and the change in prices 80 per cent. In 2016, earnings-relatedpension index is 2519, the same as in 2015. This means that benefits linked to earnings-related
pension index do not rise this year.
1,373
Wage coefficient adjusted pensionable merit, in accordance with the laws of pension income
limits and amounts.
In the wage weight change in earnings is 80 per cent and 20 per
cent of the price. In 2016 the
wage coefficient is 1.373. For what is this used for? This is
used eg. Sickness, maternity, paternity and parental benefits, special
care allowance, as well as the
definition of the rehabilitation allowance income limits.
0,96800
In 2016, the life expectancy coefficient is 0.96800. The life expectancy coefficient is intended
to limit the lifetime pension spending growth and encourages the continuation
of work resulting from the lengthening. When the average life expectancy rises,
the life expectancy coefficient will reduce the monthly pensions. If you retire
transferring wants to maintain the level of the pension to which he would have
earned in accordance with the retirement age without a life expectancy
coefficient, he will have to work longer. So how long we should work before we
are in the pension age? Time will tell.
What will the strategic dimension be
after 2016?
To maintain the well-being of society we need to work harder and cut some
of our services to survive. Let's hope that Finland is now in the bottom and
the only direction is to go up! What will the strategic dimension be after
2016?
