Changes in earnings-related pension contributions for 2023

This year there will be new differences between earnings-related pension insurance companies in TyEL contributions due to a legal amendment. This means, that each earnings-related pension insurance company will determine its own TyEL contribution component required for implementing earnings-related pensions and taking care of insurance policies, in other words, a so-called administrative cost component, and it will be directly taken into account in the customer’s TyEL contribution. For this reason, the administrative cost component will be separated in the TyEL contribution as a component of its own as of the beginning of 2023.

The basic TyEL contribution for employers with a contract, excluding the administrative cost component, is 25.30% of wages (25.35% of wages in 2022, excluding the administrative cost component that is common to all earnings-related pension insurance companies). Customer bonuses are deducted from it and an administrative cost component, specific to each earnings-related pension insurance company, is added to it.

Contact your own pension insurance company to get information about your employees’ total pension insurance plan.

Source: Varma

Read more: Ministry of Social Affairs and Health’s press release about the confirmation of earnings-related pension contributions for 2023 (in Finnish)