JHL: Withdrawing trade union membership fee deductions will increase employee tax rate

Trade Union JHL defends the employees who belong to trade unions. The new government is going to increase the tax rate of these employees by withdrawing their right to deduct trade union membership fees in taxation. Employers and entrepreneurs would however retain this right.

President of the Trade Union for the Public and Welfare Sectors JHL, Päivi Niemi-Laine, condemns the intention of withdrawing the right to deduction. It is public knowledge that the Ministry of Finance has shown green light to the new government’s plans. Even EU’s minimum wage directive requires promoting collective bargaining activities, which the deduction withdrawal certainly does not do. It makes promoting the activities more difficult.

– This tax increase would hit regular employees hard and decrease the right to belong to a union, a right which is an essential part of Western democracy. Finland’s welfare has been constructed in good cooperation between labour market organisations and the Finnish state. Now, a deep fissure is about to appear as trade union members will be harshly attacked against.

– It is completely incomprehensible that the government is also going to allow employers and entrepreneurs to retain the right to deduct various membership fees related to income acquisition in taxation. 

Niemi-Laine reminds that Finland has been constructed in a predictable manner and by agreement.

– We must continue to abide by tripartite decisions, also in the future. Intervening in the right to deduct trade union membership fees in taxation would fragment Finnish working life. The right to tax deduction has to do with employees wanting to unionise and thus ensure for themselves the minimum terms and conditions of employment and a reasonable unemployment and pension security.

More information:

President Päivi Niemi-Laine, JHL, 040 702 4772