Finland Statutory social-insurance contributions

What this value means

What a payroll engine gets wrong in Finland, in order of how much money it costs: 1. THE AGE-GRADUATED EMPLOYEE PENSION CONTRIBUTION IS GONE FROM 1 JANUARY 2026. Between 2017 and 2025 employees aged 53 to 62 paid a higher TyEL rate — 8,65 % against 7,15 % in 2025 — under a transitional arrangement. That transition has ended and ALL AGE GROUPS NOW PAY 7,30 %. Employees aged 53–62 see a cut of 1,35 percentage points; everyone else sees a rise of 0,15. Any table with two employee pension rates for Finland is a year out of date, and the error runs in opposite directions for different employees, so it will not show up as a single systematic bias. 2. UNEMPLOYMENT CONTRIBUTIONS ROSE BY ROUGHLY HALF ON BOTH SIDES. Employee 0,59 % to 0,89 %; employer lower band 0,20 % to 0,31 %; employer upper band 0,80 % to 1,23 %. In percentage-point terms these are small numbers, but proportionally they are the largest movement in the Finnish system for years, and together with the pension change they mean the 2026 employee deduction cannot be obtained by adjusting 2025. 3. THERE ARE THREE DIFFERENT AGE WINDOWS ON ONE PAYSLIP. TyEL runs from 17 to an upper limit that depends on the employee's YEAR OF BIRTH — 68 for those born in 1957 or earlier, 69 for 1958–1961, 70 for 1962 or later. The employer's health insurance contribution runs from 16 to 67. Unemployment insurance runs from 18 to 64. A single 'working age' flag will misprice the youngest and the oldest employees on at least one branch. 4. THE EMPLOYER'S UNEMPLOYMENT RATE DEPENDS ON THE EMPLOYER'S TOTAL PAYROLL, NOT ON THE EMPLOYEE. 0,31 % applies to the first EUR 2.509.500 of the employer's annual payroll and 1,23 % to everything above. A large employer therefore pays four times as much on the marginal euro of a junior employee's salary as a small employer does. The rate served here is the lower band, which is the only rate a small employer ever pays; large-employer models must apply the threshold at the employer level and prorate. 5. TyEL HAS THREE DIFFERENT HEADLINE NUMBERS AND THEY MEAN DIFFERENT THINGS. 24,4 % is the average TOTAL contribution (employer 17,10 % plus employee 7,30 %). 24,85 % is the BASE contribution for a contract employer before client bonuses and other reductions, and it too is inclusive of the employee's share. 25,85 % is the flat rate for a temporary employer with no insurance contract. Quoting 24,85 % as an employer rate double-counts the employee's 7,30 %; quoting 17,10 % as though it were fixed ignores that it is an average across employers with different bonuses. 6. THE DAILY ALLOWANCE CONTRIBUTION HAS A CLIFF EDGE, NOT A TAPER. Below EUR 17.255 of combined annual wage and self-employment income the päivärahamaksu is nil; at or above it, 0,88 % is charged on ALL the income, not on the excess. The test is on the employee's total income across all sources, which no single employer can see, so payroll withholding is provisional and the position is settled in the tax assessment. 7. THE HEALTH CARE CONTRIBUTION IS INVISIBLE ON THE PAYSLIP AND IS NOT COMPUTED ON GROSS. The 1,10 % sairaanhoitomaksu is built into the employee's withholding tax percentage and never appears as its own line. Its base is TAXABLE EARNED INCOME as computed for municipal taxation, after the deductions allowed there, so applying 1,10 % to gross pay overstates it. Its rate is also HIGHER on pension and benefit income (1,49 %) than on wages — the reverse of the usual pattern. 8. NOTHING IS CAPPED. Finland has no contribution ceiling on any branch, on either side. The only thresholds in the system are the EUR 17.255 income FLOOR for the employee's daily allowance contribution and the EUR 2.509.500 employer PAYROLL threshold for the employer's unemployment rate, and both work in the opposite direction from a ceiling. 9. FOUR DIFFERENT CONTRIBUTION BASES. The TyEL base (työansio), the withholding-tax wage base used for the employer's health insurance contribution, the unemployment insurance base and the municipal-taxation base used for the health care contribution are all defined by different instruments and diverge on fringe benefits, staff-wide profit sharing and share-based remuneration. An engine that computes one base and reuses it for all four will be wrong on some remuneration items in every direction. 10. ACCIDENT COVER IS COMMERCIALLY UNDERWRITTEN AND THE 'AVERAGE' IS NOT A RATE. Employers must insure with an authorised insurer under the työtapaturma- ja ammattitautilaki; the 2026 market average of 0,51 % conceals a range of well over an order of magnitude between office work and construction or forestry, and larger employers are additionally experience-rated. The 0,06 % group life premium arrives on the same invoice and is collectively agreed rather than statutory. 11. DEDUCTIBILITY. The employee's TyEL contribution, unemployment insurance contribution and daily allowance contribution are all deductible from earned income in taxation, and the withholding percentage issued by the Verohallinto already reflects them. The health care contribution is not deductible because it is part of the tax computation rather than a deduction from it. Employer-borne branches are business expenses and the employee-deductibility question does not arise. 12. TOTALS FOR AN ORDINARY EMPLOYEE. Employee side: 7,30 % TyEL + 0,89 % unemployment + 0,88 % daily allowance = 9,07 % of gross deducted at source, plus 1,10 % of taxable earned income collected inside the withholding tax. Employer side for a small employer with average risk: 17,10 % TyEL + 1,91 % health + 0,31 % unemployment + about 0,51 % accident + about 0,06 % group life, of the order of 19,9 % of payroll. For a large employer above the payroll threshold the marginal employer figure is nearer 20,8 %. SUB-NATIONAL VARIATION: none in the contributions. All rates are national and confirmed centrally. Finnish MUNICIPALITIES levy their own income tax at differing rates, and from 2023 the wellbeing services counties are funded from central taxation, but neither is a social insurance contribution and neither varies the branches above. The province of Åland has its own legislative competences but the social insurance contributions served here apply there unchanged. The only differentiation inside the contributions is by EMPLOYER (the unemployment payroll threshold, TyEL client bonuses, accident risk class and claims experience) and by EMPLOYEE AGE, never by geography. WHAT WE DO NOT PUT A NUMBER ON: 1. Work accident and occupational disease insurance — rate_employer and rate_total null. The premium is set by the insurer on the risk class of the work and, above a size threshold, on the employer's claims record. The published 2026 market average of 0,51 % is served in the branch notes as an average, expressly not as a rate. 2. Group life insurance — null for the same reason; the 2026 market average of 0,06 % is given in the notes. It is also collectively agreed rather than statutory, and an employer outside every applicable collective agreement is not bound by it. 3. The TyEL employer rate for any individual employer — 17,10 % is served because it is the published average, but an individual contract employer's actual rate depends on its client bonus, its size-related components and its insurer, and cannot be derived from a table. 4. Supplementary occupational pensions — not modelled. TyEL is comprehensive and voluntary supplementary schemes are rare and contractual. 5. Unemployment fund (työttömyyskassa) membership fees — not modelled. Earnings-related unemployment benefit requires voluntary membership of a fund; the fee is set by each fund, is paid by the member out of net pay, and is not a payroll contribution. The statutory unemployment insurance contribution served above is separate and compulsory. ALREADY LEGISLATED, NOT YET IN FORCE: 1. THE TyEL UPPER AGE LIMIT CONTINUES TO RISE BY BIRTH COHORT — 68 for those born in 1957 or earlier, 69 for those born 1958–1961, 70 for those born in 1962 or later. This is already in force but takes effect employee by employee as cohorts reach the limits, so it is a standing per-employee variable rather than a dated change. 2. ALL FIVE STATUTORY RATES ARE CONFIRMED ANNUALLY WITH EFFECT FROM 1 JANUARY — TyEL by ministerial confirmation, the health insurance contributions by government decree, and the unemployment insurance contributions by Act on the Employment Fund's proposal. The 2027 figures are normally settled between October and December 2026. RE-VERIFY FROM 2026-11-01. 3. THE EUR 17.255 DAILY-ALLOWANCE THRESHOLD AND THE EUR 2.509.500 EMPLOYER PAYROLL THRESHOLD are both re-set annually with the rates. RE-VERIFY FROM 2026-11-01. 4. The accident insurance and group life market averages for 2027 are published by the Tapaturmavakuutuskeskus once the year's premium bases are set. RE-VERIFY FROM 2026-12-15. No further change to the TyEL rate structure is on the statute book: the 2017–2025 age-graduation transition has completed and there is no successor arrangement. SOURCING CAVEATS: VERIFIED BY FETCHING — Eläketurvakeskus's own 2026 pension contribution page, from which the 24,4 % total, the 17,10 % employer average, the unified 7,30 % employee rate and the express statement that the age-graduated transitional arrangement has ended were read, together with the 2025 comparatives (24,85 % total, 17,38 % employer, 7,15 %/8,65 % employee); an authorised pension insurer's published 2026 and 2025 social insurance contribution table, giving the contract-employer base rate 24,85 % (2025: 25,28 %), the temporary-employer rate 25,85 % (2025: 26,28 %), the employer health insurance contribution 1,91 % (2025: 1,87 %), the päivärahamaksu 0,88 % (2025: 0,84 %), the sairaanhoitomaksu 1,10 % (2025: 1,06 %) and the unemployment rates 0,89 % employee and 0,31 %/1,23 % employer with the EUR 2.509.500 threshold (2025: 0,59 % and 0,20 %/0,80 %); and Verohallinto guidance confirming the päivärahamaksu threshold of EUR 17.255 and the 1,49 % rate on pension and benefit income. COULD NOT READ: the Sosiaali- ja terveysministeriö press pages returned HTTP 403 and the Työllisyysrahasto contribution page returned HTTP 404 during this pass, so the ministry's and the Employment Fund's own statements of the 2026 unemployment rates were not opened directly. The figures are nonetheless corroborated across two independent published tables and the ETK page, and the part-owner rates (0,39 % employee, 0,31 % employer) and the state-enterprise and university upper-band rates (0,72 % and 0,79 %) come from that corroborating material rather than from the Fund itself. The statutory reference numbers for the Acts cited are as commonly given and the consolidated texts on Finlex were not opened in this pass. INFERRED, NOT READ AS A STATED FIGURE: the 9,07 % employee total and the approximately 19,9 % and 20,8 % employer totals are arithmetic from the verified component rates. The characterisation of the TyEL upper age limit by birth cohort, and of the 16–67 and 18–64 age windows, is from the standard descriptions of the respective Acts rather than from their text as read in this pass. Reported branches are those applying to an ordinary private-sector employee insured under TyEL. Not covered: seafarers (MEL), the self-employed (YEL) and farmers (MYEL), public-sector employees under JuEL, and posted workers whose applicable law is determined by Regulation (EC) No 883/2004. Employee and employer shares are stated separately: the employee figure is what leaves the payslip, the employer figure is cost of employment and is not a deduction.

Get it programmatically

curl https://euroref.dev/v1/fi/social-contributions
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History:    curl https://euroref.dev/v1/fi/social-contributions/history?from=2020-01-01
# Provenance: curl https://euroref.dev/provenance/fi/social-contributions

Other Finland series: Policy Rate (ECB Deposit Facility Rate) · Value Added Tax (Arvonlisävero / ALV) · VAT registration threshold · Statutory Minimum Wage (none - set by collective agreement) · Public Holidays · Consumer Price Inflation (Kuluttajahintaindeksi, year-on-year) · Corporate Income Tax (Yhteisövero) · Withholding tax rates · Personal Income Tax (Ansiotulon valtion tulovero) · ECB main refinancing operations rate (fixed rate) · Late-payment interest (EU Late Payment Directive) · Statutory default interest (viivästyskorko)

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