Earnings-related pension insurance contributions for 2025 confirmed
The Ministry for Social Affairs and Health has confirmed the earnings-related pension insurance contributions for 2025. The average contribution for employer’s pension insurance (TyEL) is 24.85 per cent of the payroll in 2025.
The actual TyEL contribution is on average 24.4%, i.e. it will remain the same as in 2024. In addition to this, employers will be charged the fourth, i.e. the last repayment (0.45%), of the temporary employer contribution reduction in 2020. The average pension contribution describes the general contribution level and gives a big picture of the differences between the years.
How is the TyEL contribution determined?
The TyEL contribution is divided into the employee’s and the employer’s share. The employee’s share will remain on the same level as this year, i.e. 7.15 per cent for those aged under 53 and over 62, and 8.65 per cent for those aged 53–62.
For small contract employers, the earnings-related pension insurance contribution will be a maximum of about 25.46 per cent of the payroll at Ilmarinen, when the expense loading is taken into account. A small employer is a person who has paid under €2,337,000 in wages in 2023.
Next year, the TyEL contribution by temporary employers will be 26.28 per cent of the payroll. A temporary employer’s contribution is the same in all pension companies.
You can check your insurance contribution percentage in our online service.
Ilmarinen’s administrative cost will continue to decrease in 2025
At the start of next year, Ilmarinen’s customers’ administrative cost will decrease by roughly 10 per cent. The administrative cost is part of the TyEL insurance contribution.
Ilmarinen’s administrative cost will decrease in 2025
The contribution for self-employed persons
The contribution for self-employed persons will remain the same as in 2024, i.e. 24.10 per cent for those aged under 53 and over 62 and 25.60 per cent for those aged 53–62. The YEL income is automatically adjusted annually with the wage coefficient. The wage coefficient will raise the YEL income by 2.2 per cent next year.
Insurance contribution interest rate 2025
The insurance contribution interest is part of the insurance contribution. The interest rate on earnings-related pension insurance will decrease at the start of 2025 to 2.65 per cent (this year 3.75 per cent between July 1st and December 31st). The TyEL insurance contribution will fall due on the last day of the month following the date on which the salaries or wages were paid. If you defer the TyEL contribution due date, insurance contribution interest will be added to it.
Read more about TyEL contribution due dates
The insurance contribution interest rate also impacts the YEL contribution depending on the date of payment and instalment months. The YEL contribution can be paid in several instalments. The contribution is either credited or debited with interest according to whether you pay early or late in the year. The least expensive option is to pay the YEL contribution on 20 January.
Read more about YEL contribution due dates
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2025 earnings-related pension index and wage coefficient confirmed
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Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
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Ilmarinen’s administrative cost will decrease in 2025
At the start of next year, Ilmarinen’s customers’ administrative cost will decrease by roughly 10 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution as our customer will decrease.