The TyEL contribution and contribution category for large employers

As part of your basic TyEL contribution, you pay a contribution loss component, which is used to cover credit losses that arise when some customers do not pay their TyEL contributions.

Large employers incur less contribution loss than small employers, so as a large employer, you receive a discount on the contribution loss component. This discount is determined based on your company’s payroll and reduces your company’s TyEL contribution.

We will automatically take this discount into account in your company’s TyEL contribution, and all pension companies calculate the contribution loss component and discount in the same way.

The table below shows how much your contribution loss discount will be in 2025, expressed as a percentage of your company’s payroll.

Your company’s contribution category is affected by:

• Permanent disability pensions and partial disability pensions
• Cash rehabilitation benefits and partial cash rehabilitation benefits if:
  • More than two years have passed since the start of the person’s first cash rehabilitation benefit
  • A cash rehabilitation benefit without vocational rehabilitation is valid at the next turn of the year.

If a person is granted several disability pensions or cash rehabilitation benefits related to the same time of illness, only one of these can affect your company’s contribution category.

Cash rehabilitation benefits first affect the 2028 contribution category. An employee is considered to be in vocational rehabilitation at the turn of the year if the employment pension insurance company has granted him or her a rehabilitation allowance or a rehabilitation increase before the turn of the year.

You can check the disability pensions and cash rehabilitation benefits affecting your company’s contribution category and their pension expenditure in our online service.

Below, you can find examples of the size of the pension expenditure of disability pensions and cash rehabilitation benefits for people of different ages.You can estimate that the amount of a full disability pension or cash rehabilitation benefit is, for example, half of your employee’s monthly salary before illness. Age refers to the age of the employee in the year for which pension expenditure is calculated.

In the first table, one year has passed from illness to the year for which pension expenditure was calculated, and in the second table, four years have passed.The likelihood of returning to work ability decreases when disability is prolonged. As a result, the pension expenditure in the latter table is higher than in the first.

Table: The amount of pension expenditure when, for example, the pension expenditure is calculated for 2025 and the employee has fallen ill a year earlier.

Table: The amount of pension expenditure when, for example, the pension expenditure is calculated
for 2025 and the employee has fallen ill four years earlier.

Please note that the examples are only indicative and based on actuarial principles valid in 2024. We only calculate the exact pension expenditure when the person has been granted a disability pension or when the rehabilitation benefit is found to affect the contribution category.

In the example, pension expenditure is based on full disability pension or full rehabilitation benefit. The pension expenditure for partial disability pension and partial rehabilitation benefit is half of the pension expenditure for full disability pension or rehabilitation benefit.

You can check the disability pensions and cash rehabilitation benefits affecting your company’s contribution category and their pension expenditure in our online service.

The disability pension or cash rehabilitation benefit granted to your employee does not affect your company’s contribution category if the employee has already been granted a disability pension or cash rehabilitation benefit based on the same time of illness that has affected the contribution category.

The disability pension or cash rehabilitation benefit granted to your employee does not affect your company’s contribution category if more than five years have passed since the employee became ill in the year for which the pension expenditure is calculated.

This applies in cases where the year for which pension expenditure is calculated is 2026 or later, meaning the rule first affects the 2028 contribution category.

The cash rehabilitation benefit granted to your employee does not affect the contribution category if the employee’s rehabilitation is active during the year for which pension expenditure is calculated.

This means that if the employee is paid a rehabilitation allowance or an increase in rehabilitation granted by the employment pension insurance company on the last day of the year in question or later, it does not impact the contribution category.

The examination of the activeness of the rehabilitation benefit is year-specific, meaning the same cash rehabilitation benefit may affect the contribution category in a later year if rehabilitation is no longer active.

The disability pension or cash rehabilitation benefit granted to your employee does not affect your company’s contribution category if the employee’s employment relationship has been short.

• If the employee has fallen ill in 2024 or later, a short employment relationship means that the employee has been paid less than EUR 10,000 in wages at 2022 level in the two years preceding the illness.

• If the employee has fallen ill in 2007–2023, a short employment relationship means that the employee has been paid less than EUR 3,143.77 in wages at 2022 level in the two years preceding the illness.

The limits of a short employment relationship are reviewed annually.

The disability pension or cash rehabilitation benefit granted to your employee does not affect your company’s contribution category if your employee has been hired as a new employee in your company and the employment relationship has started as a vocational rehabilitation work trial or apprenticeship training in 2024 or later.

In addition, the maximum period from the beginning of the employment relationship to the beginning of the illness is five years.

A new employee is a person who has not worked in your company or in another company belonging to the same group in the year in which the employment relationship began or in the previous three years. In addition, they have not transferred to your company as a result of a corporate reorganisation in the year in which the employment relationship began or in the three years preceding it.

The disability pension or rehabilitation benefit granted to your employee does not affect your company’s contribution category if:

• Your employee has been granted a worker’s compensation pension on the basis of a voluntary leisure time accident insurance policy you have taken out as an employer.
• The pension in question continues on 1 November of the year following the year for which the pension expenditure was calculated.

• The employee has fallen ill in 2017 or later.