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.
Employer contributions – How well do you know the additional employer costs?
Hiring an employee entails additional employer costs. What are they? How much do they come out to? Read on to get an overview of employer contributions in 2022.
Ilmarinen’s Interim Report 1 January to 31 March 2022: Premiums written grew, cost-effectiveness improved and solvency remained strong in a challenging market
The return on Ilmarinen’s investment portfolio was -2.2 (4.8 per cent), i.e. EUR 1.4 billion negative due to falling stock prices and rising interest rates. The market value of investments fell to EUR 59.1 (60.8) billion. The long-term average return on investments was 6.1 per cent. This corresponds to an annual real return of 4.4 per cent.
Finnish pension system in a nutshell
Finland has one of the best pension systems in the world - and that’s a fact. But if you’re starting a business in Finland, you might be wondering why it’s mandatory for entrepreneurs to take out pension insurance. Or for employers to get pension insurance for their employees? We are here to help you!
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