The average TyEL contribution in 2024 will be nearly the same as this year, i.e. an average of 24.81 per cent of the payroll on which the contribution is based (24.84% in 2023).
The contribution includes the repayment of the temporary contribution discount granted to employers in 2020.The impact on the 2024 contribution is 0.41 percentage points. The discount will be repaid for the last time in 2025.
Employees’ share of the pension contribution will remain the same in 2024: for those under 53 and over 62, it will be 7.15% of their salary, and for those between 53 and 62, it will be 8.65% of their salary.
The TyEL basic contribution for employers with an insurance contract, excluding the administrative cost component, will be 25.12% of the payroll next year (25.30% of the payroll in 2023). Client bonuses are deducted from the basic contribution, and a pension company-specific administrative cost contribution is added to the basic contribution.
The administrative cost contribution is a component of the TyEL contribution required for implementing earnings-related pensions and managing insurance. Since the start of this year, every earnings-related pension insurance company has set its own administrative cost contribution. The administrative cost contributions will decrease further at the start of next year.
The amount of the client bonus, which is dependent on the pension insurance company, is estimated to be 0.4% of the payroll on average in 2024 (0.6% in 2023). The amount to be distributed as client bonuses will be based solely on the earnings-related pension company’s solvency.
The disability pension component included in the contribution will decrease further and will be 0.8% of the payroll on average in 2024 (0.9% in 2023). If a company’s payroll was higher than EUR 2,251,500 in 2022, the impact of the contribution category and the reduction of the contribution loss component will also be taken into account.
The TyEL contribution for temporary employers will be 26.12% of the payroll next year (26.20% in 2023).
The YEL contribution for the self-employed will remain at the same level in 2024 as it is this year: for those under 53 and over 62, it will be 24.1% of their YEL income, and for those between 53 and 62, it will be 25.6% of their YEL income. The temporary reduction in 2020 did not apply to the YEL contribution.
The Ministry of Social Affairs and Health confirms the TyEL contribution around mid-November.
For further information, please contact Actuarial Director Ritva Tarkiainen.
Read the Finnish Centre for Pensions’ press release on the 2024 pension contributions, Työeläkemaksut vuonna 2024 (in Finnish).
Read more about Varma’s company-specific contribution components in 2024
Estimate of the 2024 TyEL contribution in the Varma Online Service
In our online service, you can easily calculate an estimate of next year’s TyEL contribution on the ‘Forecasts and reports’ page. All you need is an estimate of your company’s payroll for 2024. The service can provide you with a more detailed estimate of your company’s TyEL contribution, e.g. for next year’s budget. You can use the same service to keep track of the current year’s budget and to estimate the TyEL contributions for the rest of the year.
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