TyEL contribution

The administrative cost contribution percentage is determined based on the size of the company. The company’s size is assessed during 2026 based on the latest available average monthly earnings over a period of 12 months.

The final administrative cost contribution percentage is determined in connection with the final payment of salaries for the year. The administrative cost contribution for 2026 is determined based on the earnings insured in 2026.

If a company is part of a group insured at Varma, the contribution percentage is determined based on the size of the group. The larger the group’s payroll insured with Varma, the smaller the administrative cost contribution usually is.

Our administrative cost contribution is also competitive for smaller employers.

For new customers whose payroll is less than around EUR 10 million per year, our administrative cost contribution is smaller than usual for the first few years.

The administrative cost contribution is included in the TyEL contribution. We calculate it based on the payroll information reported to the Incomes Register and it is automatically taken into account in each TyEL invoice.

The separate reduction of the administrative cost contribution was removed at the start of 2023.

Now, the lower administrative cost contribution percentage for larger employers is factored directly into the invoiced TyEL contributions in as real-time as possible. This way, the customer receives the discount immediately as part of their contributions and not as a separate refund after the fact.

The administrative cost contribution can vary slightly from month to month if the amount of insured salaries varies. If the payroll does not change, the administrative cost contribution stays the same.

In 2026, the company’s size is assessed based on the latest available average monthly earnings over a period of 12 months. The used average monthly earnings are updated each month, which can mean small changes in the administrative cost contribution percentage.

The latest available average monthly earnings are from the calendar month that comes before the month preceding the month in which salary or wages are paid. If salary or wages are paid in May 2026, for example, the average monthly earnings from April 2025 to March 2026 are used.

When new insurance begins, we first use the payroll provided in the insurance application. When actual insured earnings begin to accrue, the estimate is replaced by the average monthly earnings calculated based on them.

The administrative cost contribution included in the temporary employer’s TyEL contribution is determined in the same way at all earnings-related pension insurance companies.

The contribution for temporary employers is 25.85% of the payroll in 2026. The contribution includes the administrative cost contribution.

At Varma, the contract employer’s TyEL contribution is the cheaper option. Even if your payroll is less than EUR 10,272 for six months or you employ people temporarily, you can still sign a TyEL insurance policy.

In addition to a smaller TyEL contribution, a contract employer annually receives a discount on insurance contributions in the form of client bonuses.

Read more about contract employers’ benefits