The contribution category model is being reformed - read about the changes

The contribution category model will be reformed at the start of 2024.

What is the contribution category model?

As a large employer you always belong to a contribution category. The disability pensions granted to your employees affect your company’s contribution category and, through that, the amount of the earnings-related pension contribution. The more disability pensions your company has, the higher your company’s contribution category and earnings-related contribution will be – and vice versa.

You can see your company’s contribution category for this and next year in our online service. In the online service you will also find a contribution category calculator that you can use to estimate your company’s contribution category for 2025 and 2026.

Reform of the contribution category model – what and when?

Who does the reform concern?

The reform of the contribution category model concerns large employers whose granted disability pensions affect the company’s contribution category and, through that, the amount of the earnings-related pension contribution.
What’s it all about?

The goal is to improve, among other things, access to employment for older people and people who have difficulty finding employment. The reform encourages employers to anticipate work ability risks and take better care of their employees’ work ability.
When will the changes enter into effect?

The reform is intended to take effect at the start of 2024. The change will start to show in earnings-related pension contributions in stages, for the first time in 2025 and fully in 2029.

What will change?

1. It will be easier for people over 55 to find employment

When you hire a person over 55 in a new employment relationship, the employee becoming disabled will have no impact on your company’s contribution category.
The change will affect employment relationships that begin at the earliest on 1 January 2024.

2. The delay between an employee falling ill and the contribution category impact will shorten

An employee’s cash rehabilitation benefit will affect your company’s contribution category if it has lasted more than two years. However, if rehabilitation is active the cash rehabilitation benefit will not affect your contribution.
However, if more than five years has elapsed since the pension contingency, the disability pension or cash rehabilitation benefit will not affect your contribution.
The change will affect the risk ratio for the first time in 2026, which will affect the 2028 contribution category.

3. The threshold for offering a person a work trial or apprenticeship will lower

When you hire a person, for instance, through a work trial, a five-year protection period will begin for your company. If the employee becomes disabled during that period, their disability pension will not affect your company’s contribution category.
The change will affect employment relationships that begin at the earliest on 1 January 2024.

4. The impact of short-term employment relationships on the contribution category will decrease

If you have paid less than EUR 10,000 in wages for a short-term employment relationship, the employee becoming disabled will have no impact on your company’s contribution category.
The change will affect pension contingencies occurring at the earliest on 1 January 2024.

5. The company's deductible on the disability pension contribution will decrease gradually

The full deductible will decrease incrementally to 60 per cent by 2028.
The change will take effect gradually in 2025–2028.

Influence your contribution category by taking care of your employees’ work ability

When you take care of your employees’ work ability, you can influence your contribution category and, in turn, save significantly on your TyEL insurance contributions. As our customer, you can use our diverse work ability services at no cost and support your employees’ day-to-day work ability.

Read how we can help you in your work ability matters

Go to online service