TYEL INSURANCE CONTRIBUTION

The TyEL contribution is calculated as a percentage of employees’ earnings. In 2012, the basic TyEL contribution is 23.3% of the salary. The Ministry of Social Affairs and Health annually confirms the level of the TyEL contribution.

The basic ontribution is reduced by possible customer bonus granted to company.

In companies with a total payroll of over 1,846,500 €, the contribution is also affected by the number of disability pensions.

The employer pays the insurance premium in full but the employees contribute to the costs of the pension coverage. The contribution for an employee less than 53 years of age is 5.15% and older 6.50% of the salary.

The TyEL contribution is paid on the earnings of employees between the ages 18 and 67.

Social insurance contributions 2012 (pdf)