We have compiled information about the TyEL insurance policy that employers should be aware of as the new year approaches.
The basic TyEL contribution next year will be 24.85 per cent of the overall payroll. A company-specific administrative cost component will be added to the basic contribution and client bonuses based on the solvency of the pension insurance company will be deducted.
If a company’s payroll was a minimum of EUR 2,455,500 in 2024, the insurance contribution will also be affected by the contribution category and the contribution loss discount.
Changes to the pension contributions of employees
One change that affects all employers next year is the change in the TyEL contribution rate. The pension contribution of employees in all age groups will be 7.30 per cent of the salary/wages. This signifies an increase in contributions for some employees and a decrease for those aged 53–62.
During 2025, the contribution rate for those under the age of 53 or over 62 was 7.15 per cent and for those aged 53–62, it was 8.65 per cent.
The change is due to the end of the agreed transition period for the 2017 pension reform. In the reform, it was agreed that during the transition period of 10 years, the earnings-related pension of those aged 53–62 would accrue at a rate of 1.7 per cent of the annual income. Due to the higher pension accrual rate, this group has also paid higher pension insurance contributions.
Starting next year, all employees will accrue pension at a rate of 1.5 per cent of their annual earnings.
Changes to the upper age limits of TyEL insurance
Until now, the TyEL insurance obligation has ended at the end of the calendar month in which the employee turns 68. Those born in 1958 are the first age group for which the upper age limit for the obligation to insure will rise to 69.
From the beginning of next year, the upper age limit for TyEL insurance will depend on when the employee was born:
- 69 years for those born in 1958–1961 and
- 70 years for those born in 1962 or later.
Those born in 1957 have an upper age limit for old-age pension of 68 years, so after the turn of the year, they will no longer pay pension contributions or accrue pension.
Changes in the determination of the disability pension contribution
The average disability pension component included in the TyEL contribution will increase next year from 0.7 to 0.8 per cent of the payroll. Large employers (if the payroll sum has been more than EUR 2,455,500 in 2024) are also affected by their own contribution category.
According to the reformed contribution category model, companies’ liability for disability contributions based on the contribution category will be reduced to 80% in 2026.
As a result of the change, the impact of the contribution category will be reduced, which means that reductions and increases to the TyEL contribution as a result of the contribution category will become smaller. The disability contribution of companies with higher contribution categories (5–11) will decrease. The disability contribution of companies with lower contribution categories (1–3) will increase as the reducing impact of the contribution category is decreased. The contribution for those with contribution category 4 will not be affected.
Any questions?
If you have any questions or want up-to-date calculations of future contributions and bonuses, for example, your contact person will be happy to help!
We are available to assist you by phone at +358 10 195 600 and will answer your call in less than 20 seconds.
You can also contact us through the online service.
