Interest rate on earnings-related pension insurance contributions will rise at the beginning of 2023

The interest rate applicable to earnings-related pension insurance contributions will rise to 2.45 per cent at the beginning of next year. The insurance contribution interest rate came into use in 2016 and, thus far, it has been 2 per cent.

Recently, interest rates have been on the rise on markets. The effects of this can also be seen in the insurance contribution interest rate, which is based on TyEL’s 12-month reference rate quoted daily at Garantia, but it is always at the minimum 2 per cent. The above-mentioned reference rate is based on Euribor interest rates and the yields on the benchmarks bonds of the Eurozone countries. The insurance contribution interest rate used in TyEL contributions is reviewed twice a year and the rate used in YEL contributions is reviewed once a year, at the beginning of the year.

The insurance contribution interest rate is applied to insurance contributions for the period from the theoretical due date to the actual due date. The theoretical due date of TyEL contributions is the last day of the month following the salary payment month. Insurance contributions that are paid at the latest on the theoretical due data are not subject to insurance contribution interest.

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