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 their own TyEL contribution component required for implementing earnings-related pensions and taking care of insurance policies, in other words, a so-called expense loading component, and it will be directly taken into account in the customer’s TyEL contribution. For this reason, the expense loading contribution 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 expense loading component, is 25.30% of wages (25.35% of wages in 2022, excluding the expense loading component that is common to all earnings-related pension insurance companies). Customer bonuses are deducted from it and an expense loading contribution, 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 is also taken into account in the contribution.
Next year, the TyEL contribution for occasional employers is 26.20% of wages (25.85% in 2022).
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.
The Ministry of Social Affairs and Health is expected to confirm the earnings-related pension insurance contribution in mid-November.
Further information is available from Actuarial Director Ritva Tarkiainen.
Read the Finnish Centre for Pensions’ news release about pension contributions in 2023 (in Finnish).
Estimate your 2023 TyEL contribution in the Varma Online Service
On the Estimates and reports page in our online service, you can easily estimate next year’s TyEL contribution. All you need is your company’s estimated payroll for 2023. Our service provides you with the most accurate estimate of your company’s TyEL contribution, for example, for next year’s budgeting. You can also use the same service to monitor the budget for the current year and to estimate the TyEL contribution for the remainder of the year.
Read more about this topic in our news release Estimate your next year’s TyEL contribution in the Varma Online Service.