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.
The average TyEL contribution will remain almost the same as this year. The average pension insurance contribution is important for employers as it illustrates the general contribution level and offers an overview of differences between years.
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 62, and 8.65 per cent for those aged 53–62.
Starting next year, the expense loading included in earnings-related pension contributions will be determined on a company-specific basis. Expense loading is the part of the pension contribution that is used to cover the pension company’s operations; in other words, the costs arising from managing insurance policies and pensions. Ilmarinen’s excellent efficiency shows to our customers as lower earnings-related pension insurance contributions. In 2022, the expense loading paid by contract employers has been a maximum of around 0.5 per cent of the payroll. The expense loading at Ilmarinen in 2023 will be a maximum of around 0.25 per cent of the payroll.
For small contract employers, the earnings-related pension insurance contribution will be a maximum of about 25.55 per cent of the payroll at Ilmarinen, when the expense loading is taken into account.
Next year, the TyEL contribution by temporary employers will be 26.20 per cent of the payroll. A temporary employer’s contribution is the same size in all pension companies.
You can check your insurance contribution percentage in our employer’s service. You can log in to the employer’s service here.
Insurance contribution interest rate 2023
The insurance contribution interest is part of the insurance contribution. The interest rate on earnings-related pension insurance will rise at the start of 2023 to 2.45 per cent (this year 2.0 per cent). The TyEL insurance contribution will fall due on the last day of the month following the date on which the salaries or wages were paid. If you defer the TyEL contribution due date, insurance contribution interest will be added to it. Read more about TyEL contribution due dates
The insurance contribution interest rate also impacts the YEL contribution depending on the date of payment and instalment months. The YEL contribution can be paid in several instalments. The contribution is either credited or debited with interest according to whether you pay early or late in the year. The least expensive option is to pay the YEL contribution on 20 January. Read more about YEL contribution due dates
The contribution for self-employed persons will remain the same as in 2022, i.e. 24.10 per cent for those aged under 53 and over 62 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 3.79 per cent next year.
- Read about next year’s TyEL and YEL earnings limits in the news article on pension indices
YEL reform enters into force at the start of next year
The Self-Employed Persons’ Pensions Act will change at the start of the year: YEL income will be determined in more detail and adjusted more often. “Self-employed persons deserve the same level of pension and social security as employees. The reform will help achieve this,” says Minna Hakkarainen, Ilmarinen’s Director, Insurance Services.
Most frequently asked questions on the YEL reform
What questions are self-employed persons asking about the Self-Employed Persons’ Pensions Act (YEL) reform? We assembled all of the questions most frequently asked by self-employed persons. The expert for the article is Ilmarinen’s Director, Insurance Services, Minna Hakkarainen.
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