Determining the TyEL contribution
The amount of your TyEL contribution depends on your size as an employer, the client bonus you receive and the administrative cost included in the contribution. Employees also contribute to the TyEL contribution through their own contribution share
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Are you a micro-employer?
If you are hiring your first employee or only have a few employees, your TyEL contribution is based on the basic TyEL contribution, the client bonus and the administrative cost.
What does the TyEL contribution consist of and what is it used for?
Your TyEL contribution is affected by:
- your company’s size as an employer
- client bonuses
- the administrative cost of the insurance
- for large employers, additional contribution reductions and employees’ disability risk
The TyEL contribution is used to finance:
- old-age pensions
- disability pensions
- survivors’ pensions
- rehabilitation benefits
- pension index increases
- administration of the earnings-related pension system
Most of the TyEL contribution is used to finance current pensions. Part of it is funded to cover future pensions.
How much is the TyEL contribution?
In 2026, the basic TyEL contribution for a contract employer is 24.85%.
For a small contract employer, the earnings-related pension insurance contribution is at most 25.03% of payroll, including the administrative cost. In 2026, our administrative cost is no more than 0.18%.
For small employers, the TyEL contribution consists of:
- the basic TyEL contribution
- the client bonus
- the administrative cost
For large employers, the contribution also takes into account:
- the contribution loss discount
- the contribution category
The average TyEL contribution rate includes the average client bonus for the earnings-related pension sector as well as other contribution discounts.
| TyEL contribution | 2026 | 2025 |
| Average TyEL contribution |
24,40 % |
24,85 % |
|
Basic TyEL contribution excluding administrative cost |
24.85% |
25,28 % |
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Read more about the TyEL contribution
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TyEL contributions for large employers
The employer’s and employee’s share of the TyEL contribution
The TyEL contribution is shared between the employer and employee.
In 2026:
- the employer’s share is on average 17.10% of gross wages
- the employee’s share of the TyEL contribution is 7.30%
Deduct the employee’s share when you pay wages and remit the full TyEL contribution to us.
Deduct the employee’s share from wages even when your employee receives a pension in addition to their salary.
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View TyEL contributions online
Client bonuses reduce your TyEL contribution
As a contract employer, you receive an annual client bonus that reduces your TyEL contribution. We pay the bonus once a year at the beginning of the year after our financial statements have been completed.
In 2026, the client bonus reduces the TyEL contribution by an average of 0.5 percentage points.
Client bonuses are paid to all contract employers.
If you transfer your TyEL insurance to us from another earnings-related pension insurance company, your previous pension insurance company will pay any client bonuses for the year in which the insurance ended in accordance with the applicable rules.
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View your client bonus online
Administrative cost as part of the TyEL contribution
The administrative cost covers the expenses incurred by an earnings-related pension insurance company in managing insurance policies and pensions.
Our administrative cost is no more than 0.18% of payroll in 2026 and 2025.
The administrative cost is affected by:
- payroll
- number of employees
- the size of a possible group structure
In the monthly TyEL contribution, the payroll and number of employees for that month are taken into account. For groups, the insurance-specific administrative cost is also affected by the total payroll and number of employees across the group.
With us, the administrative cost remains the same regardless of the length of your customer relationship.
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View administrative cost online
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In the Employer’s service, you can view your current TyEL contribution, administrative cost and client bonus.
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Yes. The payment of client bonuses depends on the validity period of the insurance and the applicable rules.
Receiving a residual bonus requires that your insurance policy has accumulated at least EUR 50,000 in contribution reserves by the end of the year preceding the year the insurance ends.
You may receive a residual bonus for up to three years after the termination of your insurance. The residual bonus is smaller than the regular client bonus.
If the insurance ends during the year, receiving client bonuses accrued for the year of termination also requires that the insurance has accumulated at least EUR 50,000 in reserves from insurance contributions.
If your insurance is transferred from Ilmarinen to another pension insurance company, we will pay the client bonus for the year of termination and, where the conditions are met, any residual bonus as well.
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A company’s payroll determines whether it is classified as a small employer or a large employer. In 2026, an employer is considered a small employer if its payroll for 2024 is less than EUR 2,455,500.
For small employer the TyEL contribution is based on:
- the basic TyEL contribution
- the administrative cost
- the customer bonus.
For large employer also the following factors affect the TyEL contribution:
- contribution category
- disability risk
- credit loss discount.
See the calculation principles for a large employer’s TyEL contribution.
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