Determining the TyEL contribution
The size of your earnings-related pension contribution depends on your size as an employer and the client bonuses you receive. Read more about how the TyEL contribution is determined and its size on this page.
What does the TyEL contribution consist of?
Your TyEL contribution is affected by the following:
- Your size as an employer
- The client bonuses you receive
- A company-specific administrative cost
- As a large employer, your contribution is also impacted by other discounts and your employees’ work ability.
The Ministry of Social Affairs and Health annually confirms the principles for calculating the earnings-related pension contribution.
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The basic TyEL contribution was reduced for the rest of the year 2020 due to the coronavirus pandemic in spring 2020. The reduction reduced the employer’s share of the TyEL contribution by 2.6 percentage points of the wages and salaries paid between 1 May and 31 December 2020. The corona discount will be compensated for in 2022-2025 by raising the employer’s share of the TyEL contribution. Year 2025 the repayment raises the employer’s share of the TyEL contribution by 0.45 percentage points (0,41 in 2024).
Average TyEL contribution
The average TyEL contribution is a contribution percentage that takes into account the average client bonus of the whole earnings-related pension sector and other contribution discounts. The average TyEL contribution is 24.85% in 2025 (24.81% in 2024).
Basic TyEL contribution and average TyEL contribution in 2024 and 2025
| TyEL contribution | 2024, % of payroll | 2025, % of payroll |
|---|---|---|
| Average TyEL contribution | 24.81 | 24.85 |
| Basic TyEL contribution | 25.12* | 25.28* |
* The percentage does not take into account company-specific administrative cost. For contract employers the administrative cost will be a maximum of around 0.18 % of the payroll in 205, and 0.20 % in 2024.
Components of the TyEL contribution
The TyEL contribution you pay consists of six different components. The various components are used to finance different types of pension, such as old-age and disability pensions. They are also used to finance pension administration and cover contribution losses and other expenses.
The largest of the six components of the TyEL contribution is the pooled component that is used to finance, for example, old-age pensions and the index increments of all pensions. The largest part of the TyEL contribution is used to pay current pensions. Around one fifth of the contribution is funded for future pensions.
Components of the basic TyEL contribution on average in 2025
| Component | What is financed with the component | What affects the size of the component | % of payroll |
| Old-age pension | Old-age pensions,funded portion | Age and gender of employee | 3.67 |
| Disability pension | Disability pension and maintaining work ability | Age of employee and own disability pensions (size of employer) |
0.7 |
| Pooled component | Old-age pensions (unfunded component), years of service pensions,part-time pensions, survivors pensions, rehabilitation increments, index increments on pension etc | Age and gender of employee | 20.24 |
| Other | Contribution losses, administrative costs and statutory payments, and expenses of the Finnish Centre for Pensions, judicial administration charges,supervision charges of the Financial Supervisory Authority | Size of employer | 0.74 |
| Estimated client bonuses | The customer rebate is a payment discount for the employer and it depends on the earnings of the occupational pension institution's investments. Customer rebates are paid to contractual employers. | -0.5 | |
| Average insurance contribution | 24.85 |
Client bonus
The client bonus reduces your pension contribution. It is based on Ilmarinen’s solvency and the efficiency of our operations. Our solvency is affected by our investment income and our efficiency by the way we operate.
You receive the client bonus when your TyEL insurance is in force with Ilmarinen and you are a so-called contract employer. Insurance that has ended on the last day of the year also receives a bonus. You start receiving bonuses in the second year after your insurance with Ilmarinen has begun.
You receive the bonus early each year.
If you transfer your insurance from Ilmarinen to another pension company, you may receive an additional bonus if the conditions are met. You will receive it for a maximum of three years after your insurance has ended. The additional bonus is smaller than the client bonus.
The client bonus reduces the TyEL contribution for 2025 by an average of 0.5 per cent (0.4 per cent in 2024). If you have been insured with Ilmarinen for a long time, your bonus may be substantially larger.
The amounts of client bonuses have been determined in the earnings-related pension companies’ joint calculation principles. Each earnings-related pension company has its own calculation principles, which specify how the client bonuses are allocated across the different policies. The bonus model specified in Ilmarinen’s calculation principles is based on the insurance payroll. The Ministry of Social Affairs and Health annually confirms the earnings-related pension companies’ joint calculation principles and each pension company’s own principles.
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The more you have paid wages, the larger your client bonus. In Ilmarinen’s bonus model your client bonus is affected by two payroll amounts: your company’s payroll for the previous year and total payroll for a maximum of 20 preceding years. If your company belongs to a group, your bonus also depends on the group’s payroll. The payroll only includes the employment relationships insured with Ilmarinen.
In our bonus model, the duration of your insurance, the total payroll for a maximum of 20 years, affects the part of the bonus granted based on solvency. We distribute the surplus resulting from efficient operations based on the previous year’s payroll.
The client bonus you receive in 2025 is based on Ilmarinen’s solvency and operational efficiency in 2024.
Administrative cost at Ilmarinen
As of the start of 2023, the contributions of contract employers are impacted by a company-specific administrative cost, which is used to cover the costs of Ilmarinen’s operations resulting from managing insurance and pensions. Thanks to Ilmarinen’s excellent efficiency, our administrative cost for contract employers is a maximum of around 0.18 % of the payroll in 2025. Earlier, the share of administrative cost was included in the basic TyEL contribution percentage, which was the same size in all pension companies. The surplus resulting from efficiency was refunded annually as a discount for large payrolls and as part of client bonuses.
Ilmarinen’s administrative cost is calculated monthly, it is at the correct level when it is paid and reacts quickly to any changes in your business. It will not be adjusted based on annual data.
Ilmarinen’s administrative cost is the same size regardless of how long you have been a customer. Your insurance’s administrative cost amount is impacted by two factors: the payroll and the number of employees. The monthly calculation takes into account the payroll for the relevant month and the number of employees. They both take into consideration whether you are part of a group. Consolidating your group’s insurances with Ilmarinen reduces your administrative cost. The monthly review can lead to small differences in the amount of administrative cost, if the insured payroll and number of employees vary.
By logging in to the online service, you can see your amount of administrative cost and an estimate of your full TyEL contribution.
Your company’s size affects your TyEL contribution
As a contract employer, your company’s size affects the amount of your TyEL contribution. If you are a temporary employer, your company size has no impact on the contribution because, as a temporary employer, you only pay the basic TyEL contribution.
Whether you are considered to be a small or large contract employer depends on the payroll, which is reviewed annually. In 2025, you are a small contract employer if your payroll in 2023 was less than EUR 2,337.000, and a large one if your payroll exceeded that sum.
As a small contract employer you always pay the TyEL basic contribution and administrative cost. Your contribution is reduced by the client bonus that you receive once a year, just like other contract employers.
If you are a large contract employer, the amount of your TyEL contribution is mostly affected by the work ability of your employees. Based on their work ability, you are classified into a specific contribution category. As a large employer you receive other discounts in addition to the client bonus.
Are you a large employer? Take a look at large employers' TyEL contribution
Number of instalments and payment dates
You pay your TyEL insurance contribution once a month. The contribution is based on the earnings payment reports that you submit to the Incomes Register after each payment of wages and salaries. One payment covers all of your previous month’s earnings payment reports.
You receive the client bonus once a year. It reduces the next month’s TyEL contribution.
As a rule, your TyEL contribution falls due on the last day of the month following the payment of the wages or salaries. This last day of the month following the payment of the wages or salaries is called the theoretical due date of the TyEL contribution.
If you need to move the due date, do so in our online service. You can move the due date backby a maximum of one month. You pay the normal insurance contribution interest for the period.
In our online service, you can change the TyEL contribution to fall due in the second month following the payment of the salaries or wages. In this case, insurance contribution interest is added to the insurance contribution from the theoretical due date until the payment date.
Take a closer look at the payment and invoicing of TyEL contributions
Read more about changing the due date