The insurance contribution interest rate used in compounding the TyEL and YEL insurance contribution will change as of 1 January 2026

The insurance contribution interest rate used in compounding the TyEL and YEL insurance contribution will be 2.20 % as of 1 January 2026. At the beginning of 2025, the interest rate was 2.65 %. The TyEL insurance contribution interest rate will next be reviewed on 1 July 2026. The YEL insurance contribution interest rate will remain unchanged throughout 2026.

No insurance contribution interest is charged on TyEL insurance contributions that are due by the end of the month following the month in which salaries are paid. If the customer has arranged an extended payment term with interest, the insurance contribution interest on the payment is calculated from the end of the month following the salary payment month until the contribution’s due date. The TyEL insurance contribution must always fall due at the latest at the end of the second month after the month in which salary is paid. 

The insurance contribution interest rate is based on the 12-month TyEL reference rate quoted daily by Garantia, but it is always at least 2 percent. The 12-month TyEL reference rate is based on the Euribor rates and the yields of government benchmark bonds in the eurozone. 

More on the topic in the Finnish Centre for Pensions’ article (in Finnish)

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