TyEL insurance contribution
The Ministry of Social Affairs and Health annually confirms the level of the TyEL contribution.The TyEL contribution is calculated as a percentage of employees’ earnings. In 2010, the basic TyEL contribution is 22.4% of the salary.
The employees also contribute to the costs of earnings-related pensions.
The TyEL contribution is paid on the earnings of employees between the ages 18 and 67.
|
The total payroll in 2008 |
Contribution % of earnings 2010 (contract employer) |
|
• less than 1,686,000 € |
21.8 |
|
• 1,686,000–26,976,000 € |
21.8–22.4 |
|
• over 26,976,000 € |
22.4 |
The contributions of different employers may vary because there might be different kinds of reductions in the basic contribution. A company specific temporary decrease in contribution (0 – 0.6%) has been taken into consideration. TyEL contributions may be reduced by client bonuses (average 0.3%) accumulated during the customership. In companies with a total payroll of over 1,686,000 €, the contribution is also affected by the number of disability and unemployment pensions granted by the company to it’s employees.
Social insurance contributions (pdf)