The Finnish central labour market organisations have approved the proposed level of earnings-related pension insurance contributions for the private sector in 2027.

Earnings-related pension companies are now applying for approval of the proposal from the Ministry of Social Affairs and Health, which will be announced in November.

For 2027, the proposal for the basic TyEL contribution for contractual employers next year will be 24.96 percent of salary. This represents an increase from 24.85 per cent of earnings in 2026.

Meanwhile, the TyEL contribution for a temporary employer was proposed at 25.96 percent of salary, up from 25.85 per cent the previous year.

The level of the employees' pension contribution has been proposed to remain unchanged at 7.3 per cent.

For entrepreneurs, the contribution was proposed at 24.4 per cent of determined YEL earned income.

“The company-specific overhead component is added to the basic fee,” explained Veritas chief mathematician, Teppo Rakkolainen.

“The customer bonus, which is based on the pension company's solvency, is deducted from the basic fee.”

The Finnish Centre for Pensions (ETK) added: “The Ministry of Social Affairs and Health establishes the basis for the earnings-related pension insurance contribution upon application by the earnings-related pension insurance companies and issues regulations on the earnings-related pension insurance contributions for employees and self-employed persons in November.”

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