Employment pension insurance companies submitted an application to the Ministry of Social Affairs and Health concerning the 2022 pension contribution

Employment pension insurance companies submitted to the Ministry of Social Affairs and Health an application concerning the calculation basis for the 2022 pension contribution. According to an agreement between the central labour market organisations, the TyEL contribution collected in 2022 is, on average, 24.85 per cent of the wages used as the basis for the contribution (24.4% in 2021).

The average contribution for 2022 is increased by the repayment of the temporary reduction applied to the employers’ contribution in 2020. The effect on the 2022 contribution is 0.45 percentage points. The repayment of the temporary reduction is scheduled for 2022–2025.

The employee’s pension contribution remains unchanged in 2022 and it is 7.15% of wages for employees under 53 and over 62 years of age and 8.65% of wages for employees aged 53–62.

The basic TyEL contribution for employers with a contract is 25.85% of wages (24.8% in 2021). Customer bonuses and any other discounts are deducted from this. The basic contribution for employers is increased by the repayment of the temporary reduction applied to the 2020 basic contribution and the customer bonuses being adjusted to the normal level.

The customer bonus, which depends on the pension insurance company, is estimated to be, on average, 0.8% of wages in 2022 (0.2% in 2021). The amount of customer bonuses paid in 2021 was limited to one third of the normal amount due to the temporary reduction applied in 2020 on account of the COVID-19 situation.

The disability pension component included in the contribution will decrease and it will be, on average, 1.1% of wages in 2022 (1.2% in 2021). If a company’s payroll amount exceeds EUR 2,169,000 in 2020, the impact of the contribution category will also be taken into account in the contribution.
Next year, the TyEL contribution for occasional employers is 25.85% of wages (24.8% in 2021).

In 2022, the YEL contribution for entrepreneurs will remain at the same level as this year, that is, 24.1% of the confirmed YEL income for people under 53 and over 62 years of age and 25.6% for entrepreneurs in the age bracket of 53–62. The temporary reduction in 2020 was not applied to YEL contributions.

The Ministry of Social Affairs and Health is expected to confirm the earnings-related pension insurance contribution in mid-November.

Further information is available from Actuarial Director Ritva Tarkiainen.

Estimate your 2022 TyEL contribution in the Varma Online Service

On the Estimates and reports page in our online service, you can easily estimate next year’s TyEL contribution. All you need is your company’s estimated payroll for 2022. Our service provides you with the most accurate estimate of your company’s TyEL contribution, for example, for next year’s budgeting. You can also use the same service to monitor the budget for the current year and to estimate the TyEL contribution for the remainder of the year.

Read more about this topic in our news release Estimate the 2022 TyEL contribution with our contribution estimate service – just enter the payroll amount 

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