Generation of TyEL contributions

TyEL insurance contributions are determined in accordance with the calculation bases ratified by the Ministry of Social Affairs and Health. With the exception of the client bonus and expense loading fee, the calculation bases for TyEL contributions are the same for all employment pension insurance companies.

The TyEL contribution is calculated and paid on a monthly basis. Employers report the earnings of their employees to the incomes register, generally within five days from the salary payment date. Elo will retrieve the relevant payroll information from the incomes register and use it for the calculation of the TyEL contribution.

TyEL contribution is customer-specific

TyEL contributions payable by employers are comprised of several components and determined specifically for each customer. The rate for TyEL basic contribution is the same for all pension companies. The TyEL contribution also includes an expense loading fee, which is determined by each pension company according to their own calculation bases.

The expense loading fee is intended to cover the business expenses of the pension insurance company. At Elo, the expense loading fee consists of Elo's basic expense loading fee, and it may be reduced by the possible large-scale company discount and constancy discount. In the future, the estimated expense loading surplus will directly reduce the customer's expense loading fee, and a separate expense loading fee refund will not be provided.

Elo's customers also receive an annual client bonus, which is factored into the TyEL contribution in the spring once the final amount is determined. For large-scale employers, the TyEL contribution is also affected by the premium category and possible discount for premium loss. Below you can read more about the different components of the TyEL contribution.

TyEL contribution components

TyEL basic contribution

The TyEL basic contribution is calculated as a percentage of all salaries paid by the employer to the employees. The rate is annually confirmed by the Ministry of Social Affairs and Health, and it is the same for all pension companies. In 2025, the TyEL basic contribution is 25.28% of the salary or wages paid to employees (2024 25,12%).

Basic expense loading fee

Elo’s basic expense loading fee corresponds with the business expenses that are accrued for handling the insurance. The basic expense loading fee is collected from all TyEL insurance policies in Elo and it is determined on the basis of the employer’s payroll for the previous year.

Elo’s constancy discount

If an employer’s TyEL policy has been valid uninterruptedly during the period of 1 January 2021–31 December 2023, with earnings reported to the incomes register each year, the employer is entitled to receive Elo’s constancy discount for long-term customers.

Elo’s large-scale company discount

In 2025: If the payroll sum of an employer or Group insured by Elo totalled a minimum of 2,181,000 euro in 2024, the customer is entitled to receive Elo’s large-scale company discount.

In 2024: If the payroll sum of an employer or Group insured by Elo totalled a minimum of 2,076,000 euro in 2023, the customer is entitled to receive Elo’s large-scale company discount.

Elo’s expense loading fee refund

Elo's expense loading fee refund is a refund of the previous year's expense loading surplus. This one-time discount will cease when Elo's company-specific calculation grounds come into effect on January 1, 2025. The surplus in expense loading fees accumulated from 2024 will no longer be issued as an expense loading fee refund in spring 2025. Instead, the estimated surplus in expense loading fees will directly reduce the customer's expense loading fee.

Client bonus

The client bonus refers to a share of the profit of the pension company that is transferred to the customers, and its amount is affected by the solvency of the pension company. The Ministry of Social Affairs and Health ratifies the pension company-specific bonus principles. At Elo, client bonuses are distributed on the basis of the accrued funds and paid insurance contributions for the policies. The client bonus is credited, as a lumpsum, to the customer’s invoice in March. The client bonus has an effect on the total TyEL contribution, but it is not taken into account in the monthly TyEL contributions invoiced on the basis of payroll reports.

TyEL contribution percentage on the invoice

The percentage shown on the invoice, given with an accuracy of two decimals, indicates the share of the contribution of employees’ gross earnings. The percentage includes the TyEL basic contribution, Elo’s basic expense loading fee and the possible large-scale company and constancy discounts. The more accurate customer-specific contribution percentage for the current year is available in Elo’s Online Service under the TyEL insurance information.

For large-scale employers, the TyEL contribution is also affected by the premium category and possible discount for premium loss. Because of the impact of premium category, the TyEL contribution percentage of a large-scale employer may vary on a monthly basis.

TyEL contribution information in the Online Service

Your estimated TyEL contributions are shown in the Online Service under Contribution estimation. You can monitor the development of contributions during the current year in the Online Service under Insurance information. As of mid-January, the TyEL contribution percentage for the current year’s earnings reports is shown under Insurance information. For a large-scale employer, the contribution percentage may vary over the course of the year because of the impact of the premium category. The annual TyEL contribution and percentage will be shown in the Online Service once the last earnings report for the year has been submitted.

Premium categories for large-scale employers

The TyEL contribution of a large-scale employer is also affected by the premium category. The status of a large-scale employer depends on the payroll sum two years earlier. In 2025, a company is considered a large-scale employer if the payroll sum for their employees exceeded 2,337,000 euro in 2023 (2024: payroll sum for their employees exceeded 2,251,500 euro in 2022.)

The premium category of a particular employer is determined by the number of permanent disability and partial disability pensions granted to its employees. As a large-scale employer, you will find the premium category for your TyEL policy in Elo’s online service. Read more about premium categories in the TyEL contribution guide for large-scale employers.

You can influence the company’s premium category by keeping work ability risks under control

Work ability management promotes the fluency of work as well as the work ability, health and safety of employees. It means good everyday management where work ability issues can be dealt with proactively along with performance management. The effects of work ability management are concretely shown in costs from absence due to illness and disability as well as in the company’s productivity. The aim of Elo’s work ability management services is to help client companies manage their disability risks.

Read more about our work ability management services