Statutory Earnings-Related Pension Scheme for Private Sector Employees | Max-Planck-Institut für Sozialrecht und Sozialpolitik - MPISOC

Statutory Earnings-Related Pension Scheme for Private Sector Employees

Työntekijän eläkelaki, TyEL

1 The maximum age depends on the year of birth. Insurance obligation ends at age 68 for persons born before 1958, at age 69 for persons born between 1958 and 1961, and at age 70 for persons born after 1961.

2 The share of employer contributions was temporarily reduced by 2.6 percentage points from May 2020 to the end of the year due to the COVID-19 pandemic. The effect of the discount will be recovered during the years 2022-2025 by increasing the share of employer contributions.

3 Persons aged 53-62 pay higher contribution shares (8.65%) than younger cohorts due to higher accrual rates (1.7% compared to 1.5% for younger cohorts). Age-specific accrual rates were implemented by the 2005 reform, but abolished by the pension reform of 2017. Transitional rules still apply until the end of 2025 after which accrual rates and contributions will be the same for all.

4 Act for state-financed compensation of earnings-related pension for the periods of home care of a child under the age of 3 or periods of studies of 27.6.2003/644 (VEKL).

Legal Basis: Employees’ Pensions Act 395/2006 (Työntekijän eläkelaki, TyEL).