Earnings-related pension insurance contributions for 2022 confirmed
The Ministry for Social Affairs and Health has confirmed the earnings-related pension insurance contributions for 2022. The TyEL basic contribution will be 25.85 per cent of the payroll in 2022. For the majority of customers, this is an important percentage as Ilmarinen uses it to invoice customers each month based on the salaries they have reported.
The average level of earnings-related pension contributions will rise 0.45 percentage points in 2022. The need for the increase was agreed on earlier when reductions were made to TyEL contributions due to the COVID-19 pandemic.
The TyEL contribution is divided into the employee’s and the employer’s share. The employee’s share will remain on the same level as this year, i.e. 7.15 per cent for those aged under 53 and over 63, and 8.65 per cent for those aged 53–62.
The average pension insurance contribution proposed by the labour market organisations (24.85 per cent) that was publicised earlier, is also important for employers as it illustrates the general contribution level and offers an overview of differences between years.
The contribution for self-employed persons will remain the same as in 2021, i.e. 24.10 per cent for those aged under 53 and over 63 and 25.60 per cent for those aged 53–62. The YEL income is automatically adjusted annually with the wage coefficient. The wage coefficient will raise the YEL income by 2.45 per cent next year.
Most frequently asked questions on the YEL reform
What questions are self-employed persons asking about the Self-Employed Persons’ Pensions Act (YEL) reform currently being deliberated in Parliament? We assembled all of the questions most frequently asked by self-employed persons. We will answer them under the assumption that the government’s legislative proposal will remain unchanged in Parliament. The expert for the article is Ilmarinen’s Director, Insurance Services, Minna Hakkarainen.
YEL in 2023 – Six things for entrepreneurs to remember
Year 2023 is fast approaching. Below you’ll find six things every entrepreneur needs to know about their YEL insurance at the turn of the year.
Earnings-related pension insurance contributions for 2023 confirmed
The Ministry for Social Affairs and Health has confirmed the earnings-related pension insurance contributions for 2023. The average contribution for employer’s pension insurance (TyEL) is 24.84 per cent of the payroll in 2023.