The labour market central organisations in Finland have agreed a proposal for the occupational pension insurance premium for the private sectors in 2023.

Employees Pensions Act (TyEL) occupational pension contributions collected in the private sector has been proposed at an average of 24.84 per cent of salary for next year.

The proposal will be sent to the Finnish Ministry of Social Affairs and Health to be decided upon.

The actual TyEL payment has been proposed at 24.4 per cent, the same level as in 2022.

In additional to this, private sector employers will be charged the second repayment installation of the temporary employer fee reduction that was in use in 2020.

The employer's payment is an average of 17.39 per cent of the wages on which the payment is based, including the repayment instalment of the employer contribution reduction (0.44 per cent).

Employee contributions will remain at the same level as 2022, at 7.15 per cent for those aged under 53 and over 62, and at 8.65 per cent for those aged between 53 and 62.

Self-employed workers’ pension contributions will also remain at the same level, with those aged under 53 and over 62 paying 24.1 per cent, and those aged between 53 and 62 paying 25.6 per cent of income.

"Occupational pension contributions remain broadly at the same level as in 2022,” commented Veritas chief mathematician, Teppo Rakkolainen.

“The only exception is the reduction of 0.01 percentage point to the average employer contribution, which is due to the fact that the amount for the repayment of the reduced employer contribution is lower this year compared to last year.

"In the repayment items, the aim is to have as even an impact on the fees as possible between the years 2022-2025."

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