The central labour market organisations have agreed on a proposal for earnings-related pension contributions in 2025. The earnings-related pension companies have submitted the proposal to be confirmed by the Ministry of Social Affairs and Health.
The TyEL basic contribution of contract employers next year will be 25.28% of their payroll. A pension provider-specific expense loading fee will be added to the basic contribution. The contribution is reduced by client bonuses based on the solvency of the pension insurance company.
‘For the last time, employers will pay an increased contribution due to the temporary reduction granted during the COVID-19 pandemic. The effect of the increase is 0.45 percentage points’, says Teppo Rakkolainen, Chief Actuary at Veritas.
The insurance contribution of entrepreneurs will remain at the same level as in 2024.
‘The 2017 pension reform came with a transitional period during which workers and entrepreneurs aged 53 to 62 have a higher pension contribution than others and a correspondingly higher earnings-related pension accumulation rate. The transitional period will terminate at the end of next year, after which their pension will accumulate in the same way as for the rest of the population.’
Proposal for TyEL contributions in 2025
- The TyEL basic contribution of contract employers, without the expense loading fee, is 25.28% of the payroll (25.12% in 2024).
- The TyEL insurance contribution of occasional employers is 26.28% of the payroll (26.12% in 2024).
- The TyEL component for employees under the age of 53 and over the age of 62 is 7.15%.
- The component for employees between the ages of 53–62 is 8.65%.
Proposal for YEL contributions in 2025
- The contribution for entrepreneurs under the age of 53 and over the age of 62 is 24.10% of the confirmed YEL income amount.
- For those aged 53-62, the insurance contribution is 25.60% of the confirmed YEL income.
Press release of the Finnish Centre for Pensions: Pension contributions in 2025 (in Finnish) (8 October 2024)
