Health Insurance Contribution in Finland

Social tax or health insurance contribution is 1,34% of taxable salary in Finland in 2020 (0,77% in 2019).

Employers must pay health insurance contributions for 16 to 67 year old employees who are covered by the Finnish social insurance system in accordance with the Health Insurance Act.

The employer’s health insurance contribution must be paid even if no tax can be withheld. This may be the case, for example, when wages are paid as fringe benefits rather than money, or when the employee’s tax card indicates that no tax is to be withheld.

Source: Verohallinto

Pension Contributions in Finland

Pension contribution payments are mandatory for all employees and entrepreneurs in Finland. The employee pension (TyEL) contribution in 2020 is 25,3% of the taxable salary. This amount includes the employee part, which is withheld before making the salary payment to the employee. The employee part in 2020 is 7,15% for employees between the ages 17-52, 8,65% for employees between the ages 53-62 and 7,15% for employees aged 63 and above.

The entrepreneur’s pension contribution (YEL) is 24,1% (for entrepreneurs between the ages 18-52), 25,6% (for entrepreneurs between the ages 53-62) and 24,1% (for entrepreneurs aged 63 and above) in the years 2017-2020. There are reduced rates for pension contributions of starting entrepreneurs for the first four years.

Sources: Varma (in Finnish) and Ilmarinen (in Finnish)

Unemployment Insurance Contribution in Finland

The employer’s part of the unemployment contribution in 2019 is 0,50% of taxable salary for employers paying salaries of up to 2,086,500 euros per year (and 2,05% of taxable salary for amounts paid above 2,086,500 euros per year). The employee part of the unemployment contribution is 1,50% of taxable salary in 2019. The unemployment contribution for shareholders is 0,50%-0,78% of taxable salary in 2019.

Source: Employment Fund