View the preliminary information on pension contributions for 2021
According to the Finnish Centre for Pensions’ projection, the TyEL basic contribution will be 24.8 per cent of the payroll in 2021. The basic contribution does not take into account any reductions in the employer’s contribution or the possible impact of the contribution category. By logging in to the employer’s online service you can see a company specific estimate of the 2021 contributions.
The TyEL contribution is divided into the employee’s and the employer’s share. According to the estimate, the employee’s share will remain the same as in 2020. The size of the employer’s final contribution depends on different reductions, such as the client bonus paid by the pension company. The employer’s share of the contribution is an average of 16.95%, and the rest is the employee’s share.
If a company’s payroll in 2019 exceeded EUR 2,125,500, the size of the TyEL contribution will also be impacted by the so-called contribution category, which is based on the disability pensions granted to employees in previous years.
The coronavirus crisis affected the client bonuses for 2021 so that no client bonuses will accrue between 1 May and 31 December 2020, the period during which the reduction in the TYEL contribution was applied. Although the amount of client bonuses distributed in the whole sector will be smaller, the other components of the contribution will be reduced correspondingly so that the total contribution will remain on the same level as before the coronavirus crisis.
Overall, the average private sector pension contribution would remain at 24.4 per cent of the employee’s payroll. The average contribution means the contribution level that takes into account all of the factors affecting the size of the final contribution.
You can find the final contribution percentages on our website once the Ministry of Social Affairs and Health has confirmed them. The Ministry will confirm the insurance contribution percentages during November.
Always check your company’s insurance contribution percentage by logging in to our online service. In our online service, you can see a projection of next year’s contribution percentage and TyEL contributions.
Temporary employer's contribution
According to the projection, temporary employers’ contribution will be 24.8 per cent of the payroll (25.3% January–April 2020/22.7% May–December 2020).
Self-employed person's contribution
The contribution for self-employed persons will remain on the same level as this year, i.e. 24.10 per cent for those aged under 53 and over 62 and 25.60 per cent for those aged 53–62.
Current topics
Employer, self-employed person or pensioner: 2027 earnings-related pension index and wage coefficient confirmed
The Ministry of Social Affairs and Health has confirmed the pension indices for 2027. The earnings-related pension index will be 3,184, which means pensions will increase by approximately 2.6% at the turn of the year. The wage coefficient has been confirmed at 1.773, an increase of approximately 3.6% from 2026.
Ilmarinen’s return on investments was 6.2 per cent or EUR 4.2 billion
Employment pension insurance company Ilmarinen’s investments yielded 6.2 per cent in January–September. The market value of investments grew to a record-breaking level of EUR 71 billion.
YEL reform moves forward: more choice for self-employed persons on how contributions are determined
The proposal to amend the Self-employed Persons’ Pension Act (YEL) will now proceed to Parliament. After the reform, pension contributions and pension benefits would be based either on YEL income determined much as it is today or on actual earnings.