The insurance contribution interest rate used in compounding the TyEL insurance contribution will rise as of 1 July 2023

The insurance contribution interest rate used in compounding the TyEL insurance contribution continues to rise and will be 3.85 per cent starting on 1 July. The YEL insurance contribution interest rate will remain the same as at the start of the year, at 2.45 per cent. For TyEL, the insurance contribution interest rate’s value is adjusted every six months, while for YEL once a year on 1 January.

The insurance contribution interest rate was adopted in 2016 and its value was 2 per cent until the end of 2022. Interest rates have risen recently on the markets and the impact of this can also be seen in the insurance contribution interest rate. The insurance contribution interest rate is based on the 12-month TyEL benchmark rate quoted daily by Garantia, but is always at least 2 per cent. The TyEL 12-month benchmark rate is based on the Euribor rates and the returns on eurozone countries’ benchmark bonds.

Interest is calculated for the TyEL insurance contributions based on the due date of the contribution. Insurance contributions paid by the end of the month following the month in which salaries are paid are not subject to insurance contribution interest. If the customer has selected an additional one-month payment term subject to interest, the contribution will fall due during the second calendar month following the month in which salaries are paid, which means that the insurance contribution interest will be calculated as of the end of the calendar month following the salary payment month.

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