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Article 28.4.2022

Finnish pension system in a nutshell

Finland has one of the best pension systems in the world - and that’s a fact. But if you’re starting a business in Finland, you might be wondering why it’s mandatory for entrepreneurs to take out pension insurance. Or for employers to get pension insurance for their employees? We are here to help you!

Finnish pension system in a nutshell
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  1. 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.
    Earnings-related pension insurance contributions for 2025 confirmed
  2. Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
    The Ministry for Social Affairs and Health has confirmed the indices for earnings-related pension insurance for 2025. Next year, the earnings-related pension index is 3077, which means an approximately 1.3 per cent increase on pensions at the start of the year. The confirmed wage coefficient is 1.673. Compared to 2024, the wage coefficient will rise some 2.2 per cent.
    Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
  3. Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
    Ilmarinen's return on investment in the period January–September was 7.4 per cent, or EUR 4.4 billion. Investment assets rose to EUR 62.9 billion and solvency capital to EUR 14 billion. Cost effectiveness continued to improve and is reflected in lower premiums for customers.
    Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
  4. Ilmarinen's return on investment 4.9 per cent, and market uncertainty increased
    In January–June, Ilmarinen's return on investment was 4.9% and its solvency strengthened. Cost-effectiveness continued to improve as premiums written grew 2 per cent and pension cover operating expenses fell 6 per cent.
    Ilmarinen's return on investment 4.9 per cent, and market uncertainty increased
  5. Coming this year: electronic YEL invoices to be sent automatically
    In future, we will be sending electronic YEL invoices automatically if the payer of the invoice is a company that receives online invoices.
    Coming this year: electronic YEL invoices to be sent automatically
  6. YEL in 2024 – what will change?
    YEL insurance is the most important insurance for you as an entrepreneur, as it is the basis for your pension and social security. Keep reading to see what you should know about your YEL insurance as the year changes.
    YEL in 2024 – what will change?
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