Earnings-related pension insurance contributions for 2024 have been confirmed

The Ministry of Social Affairs and Health has confirmed the pension insurance contribution rates for 2024. The average pension contribution for TyEL insurance will remain at nearly the same level next year as in the current year, at 24.81 per cent of the total payroll. The average TyEL insurance contribution depicts the general payment level, and Elo customers can view their own contribution percentage from the estimation calculation in Elo’s Online Service. 

The TyEL insurance contribution is paid by employers, who will deduct the employee share of the contribution from the salaries or wages paid to their employees. Next year, the employee’s share of the insurance contribution will be the same as for this year, at 7.15 per cent for those under the age of 53 and over the age of 62, and 8.65 per cent for those between the ages of 53–62. 

The TyEL basic contribution of contract employers will be 25.12 per cent of their payroll. In addition to the basic contribution, the TyEL insurance contribution also includes a pension provider-specific expense loading fee. Thanks to improved cost-efficiency, Elo’s basic expense loading fee will be reduced for all our customers by 9 per cent next year. Additionally, we are the only pension company to offer our customers a constancy discount on the basic expense loading fee.

The contribution of occasional employers is the same in all pension companies and will be 26.12 per cent of the payroll next year. 

The client bonus and expense loading fee refund reduce the TyEL insurance contributions

The final TyEL insurance contribution of contract employers is reduced by the client bonus and expense loading fee refund paid by Elo. During February-March of next year, Elo will pay its customers client bonuses as well as around 8 million euro in expense loading fee refunds. Elo is the only pension company that gives its customers a concrete expense loading fee refund. 

Earnings-related pension insurance contribution of self-employed persons

The contribution percentages for YEL insurance will remain entirely the same next year as it is this year. Therefore, in 2024, the YEL insurance contribution will be 24.10 per cent of the confirmed YEL income for those under the age of 53 and over the age of 62, and 25.60 per cent for those between the ages of 53–62. It is important to note that all YEL income amounts are automatically adjusted with an annually determined wage coefficient. The wage coefficient ensures that the YEL income of self-employed persons remains consistent with the general development of the salaries and price levels. Next year, the wage coefficient will increase the YEL income amounts by 5.07 per cent. 

Visit our Online Service to see the estimation of your TyEL contributions in 2024

Customers of Elo can view an estimation of their insurance contributions from our Online Service, thereby enabling them to budget for these expenses in the coming year. The contribution estimation for the next year includes estimates of 

• the basic TyEL insurance contribution in euro
• the TyEL contribution percentage and the employee’s share of the contribution
• the client bonus
• the expense loading fee including any possible discounts and
• the expense loading fee refund, which will be paid next year for the first time.

You can also still get a contribution estimation for 2023.