Subpages:

1950s

Over the course of the new decade, the rate of compensation specified in the law of 1948 was shown to be too low. This was partly due to the fact that the rates had been initially set too low, but on the other hand, high inflation rates and rises in living costs and wages had outpaced the compensation rates. Consequently, the rates were increased across the board several times during the 1950s, and the scale for permanent allowances was improved.

In 1958, the law was updated to tie the daily allowance, annuity and survivor’s pension to a fixed percentage of annual earnings. This came with the restriction that for those earning more than one million Finnish markka per year, the excess amount was not taken into account. The aim of the increases was to improve equality between annuities and pensions granted at different times.

As old pensions were ordered for reprocessing, the amounts of compensation paid increased considerably. In 1959, paid claims grew by some 700 Finnish million markka. This was offset by raising insurance premiums by 30.5 per cent at the beginning of the same year.

In 1957, another milestone was reached as the number of employees with accident insurance surpassed one million for the first time.

The decade was also marked by increased internationalisation. In 1957, FAII joined as a member of the International Social Security Association (ISS). The Federation’s representatives were Kirsti Oravisto (1954-1955) and Sven Sirén (1955-1959).