Social Insurance Contributions 2021

 

Employee's pension contribution

An employee shall be insured under TyEL if the monthly earnings amount to at least €61,37/month. Temporary payment discounts, customer reimbursement, etc. will influence the employer's payment. Pension contributions apply to employees between ages 17 and 67.

The pension contribution of a contractual employer is an average of 16.95%. The TyEL contribution will be calculated based on the real time earnings data reported to the Incomes Register and any amendmens made on a monthy basis.

	% of the payroll
Less than €2 125 500 Contract employer, salaries/wages less than €2 125 500. There are discounts and credits available that may affect the tax rate. Please see vero.fi for further details.	24,8 %
An occasional employer (who does not have permanent employees and the payroll is under  €8 790 / 6 months)	24,8 %
Employee’s share of TyEL contribution:
Under 53-year-old and over 63-year-old	7,15 %
53–62 years	8,65 %

Self-employed person's pension contribution

Under 53-year-old and over 63-year-old and older	24,1 %
53–62 years (transition regulations 2017–2025)	25,6 %
New entrepreneur contribution
Under 53-year-old and over 62-year-old and older	18,798 %
53–62 years (transition regulations 2017–2025)	19,968 %

Lower limit for YEL earned income €8 063,57 ​€/year.
Upper limit for YEL earned income €183 125 ​€/year.

 

Employer's sickness insurance fee

The payment percentage 1,53 % has been confirmed for the employer's sickness insurance fee for 2021.

The payment percentage will be applied to wages to be paid in 2021; the period of earning the wages will not have an influence. The employer's social security contribution will not be paid for wages paid to employees under the age of 16 or over the age of 68.

 

Unemployment insurance contribution

The employer must pay an unemployment insurance contribution if the total amount of wages paid to employees during the calendar year exceeds €1,300. The unemployment insurance contribution is paid for employees aged 17 to 64. The contribution paid for wage earners is determined as follows:

	Total	Share of employer	Share of employee / co-worker
Up to wage sum of  €2 169 000	1,90 %	0,50 %	1,40 %
For the share exceeding the wage sum of €2 169 000	3,15 %	1,90 %	1,40 %
From the wage sum of a TyEL-insured co-owner	1,15 %	0,50 %	0,65 %

Different rates may apply to employees of government-owned organisations and universities. Please see vero.fi for further details.

Accident insurance contribution

The accident insurance contribution is determined according to the wages and the dangerous nature of the work. An average accident insurance contribution is 0.7%.

Employees' group life insurance

The accident insurance company will collect the life insurance contribution in connection with the accident insurance contribution. The contribution is collected for the employees, partners, and shareholders who are covered by a statutory accident insurance. The payments vary between companies. An average group life insurance contribution is 0.07%.