The TyEL contribution collected in 2023 is, on average, 24.84 per cent of the wages (24.85 per cent in 2022). The contribution loss reduction, the average client bonus and the administrative cost component, specific to each earnings-related pension insurance company, are taken into account in the contribution. The average contribution now includes, for the second time in a row, the repayment of the temporary reduction applied to the employers’ contribution in 2020. The effect on the 2023 contribution is 0.44 percentage points. The repayment of the temporary reduction is scheduled for 2022–2025.
The employee’s pension contribution remains unchanged in 2023 and it is 7.15% of wages for employees under 53 and over 62 years of age and 8.65% of wages for employees aged 53–62.
Starting from 1 January 2023, there will be new differences between earnings-related pension insurance companies in TyEL contributions due to a legal amendment. In the future, each earnings-related pension insurance company will determine its own TyEL contribution component required for implementing earnings-related pensions and taking care of insurance policies, in other words, a so-called administrative cost component, and it will be directly taken into account in the customer’s TyEL contribution. For this reason, the administrative cost component will be separated in the TyEL contribution as a component of its own as of the beginning of 2023.
The basic TyEL contribution for employers with a contract, excluding the administrative cost component, is 25.30% of wages (25.35% of wages in 2022, excluding the administrative cost component that is common to all earnings-related pension insurance companies). Customer bonuses are deducted from it and an administrative cost component, specific to each earnings-related pension insurance company, is added to it.
The customer bonus, which depends on the earnings-related pension insurance company, is estimated to be, on average, 0.6% of wages in 2023 (0.8% in 2022). The disability pension component included in the contribution decreases and is, on average, 0.9% of wages in 2023 (1.1% in 2022). If a company’s payroll amount exceeded EUR 2,197,500 in 2021, the impact of the contribution category and the contribution loss reduction are also taken into account in the contribution.
Next year, the TyEL contribution for occasional employers is 26.20% of wages (25.85% in 2022).
Contributions falling due after the last day of the month following the salary payment month are subject to insurance contribution interest. Starting from 1 January 2023, the insurance contribution interest rate will be 2.45 per cent.
In 2023, the YEL contribution for entrepreneurs remains at the same level as this year, that is, 24.1% of the confirmed YEL income for people under 53 and over 62 years of age and 25.6% for people in the age bracket of 53–62. The temporary reduction in 2020 was not applied to YEL contributions.