Employers’ and employees’ pension and insurance contribution rates (%) in 2018Tax Administration Bulletin, 1/18/2018
The 2018 social insurance contribution rates of employers and employees.
The employers’ statutory social insurance contributions include health, earnings-related pension, unemployment, accident and group life insurance contributions. The employer collects the employee's portion of the earnings-related pension and unemployment insurance contributions from the employee’s pay.
Employers’ social insurance contributions (% of pay)
1. The employer's health insurance contribution
(previously: social security contribution) on wages paid in 2018 is 0.86%. This contribution does not apply to wages paid to individuals aged under 16 or 68 and over.
2. a) Earnings-related pension insurance contribution (TyEL)
Temporary payment reductions and customer credits, for example, may have an effect on the employer's contribution. Earnings-related pension contributions apply to employees aged 17 to 67.
The average earnings-related pension insurance contribution rate for a contract employer is 17.75%.
2. b) Seafarers’ pension insurance contribution (MEL)
- The employer's portion is 13.2%.
3. Accident insurance contribution
The statutory accident insurance contribution varies by line of business and company. The contribution is determined on the basis of payroll and the accident risk of the job in question.
4. Unemployment insurance contribution
Unemployment insurance contributions apply to employees aged 17 to 64.
- The contribution rate is 0.65% for a payroll of EUR 2,083,500 or less.
- The contribution rate is 2.60% for a payroll of more than EUR 2,083,500.
- The rate for the part-owners’ contribution is 0.65% (regardless of payroll).
5. Group life insurance contribution
The contribution varies by company.
Employees’ social insurance contributions (% of pay)
1. Earnings-related pension insurance contribution and seafarers’ pension insurance contribution
- The employee's portion is 6.35% for individuals aged 17 to 52.
- The employee's portion is 7.85% for individuals aged 53 to 62.
- The employee’s portion is 6.35% for individuals aged 63 to 67.
2. Unemployment insurance contribution
- The employee's portion is 1.90%.
- The part-owner’s portion is 0.92%.
3. Insured person’s health insurance contribution
The contribution is included in the tax card's tax withholding rate (%) and will not be withheld separately from pay.
- The daily allowance contribution rate is 0.00% for income of less than EUR 14,020. For income of more than EUR 14,020, the daily allowance contribution rate is 1.53%.
- The health insurance contribution rate is 0.00% of pay and earned income.