Formation of TyEL contributions
The TyEL insurance contribution is determined according to the calculation principles confirmed by the Ministry of Social Affairs and Health. Except for client bonuses and basic expense loading fees, the calculation principles are the same for all pension insurance companies.
The TyEL contribution is calculated and paid monthly. The employer reports employees’ earnings to the Incomes Register, generally within five days of salary payment. Elo retrieves the earnings data from the Incomes Register to calculate the TyEL contribution.
On this page
TyEL contribution is customer-specific
The TyEL contribution consists of several parts. The largest part is the TyEL basic contribution, which is the same in all pension companies.
Customer-specific parts include the basic expense loading fee, based on the pension company’s own calculation principles, and the client bonus, which Elo’s contract insurance customers receive annually.
For large-scale employers, the contribution also considers the effect of the contribution category and a discount on the loss contribution.
What does the contribution consist of?
Components of TyEL contribution
If the payroll insured with Elo for the employer or group in 2025 was at least EUR 2,229,000, the employer is entitled to a large-scale company discount.
The large-scale company discount is calculated based on the annual payroll of the employer or group from the previous year. It is a factor that reduces the basic expense loading fee by at least 10%.
The large-scale company discount is applied automatically in the TyEL payment when the conditions are met.
The constancy discount is Elo’s own way to reward long-term customers every year after the third customer year. The constancy discount reduces Elo’s basic expense loading fee for customers
- whose TyEL insurance has been valid with Elo for at least three consecutive calendar years,
- who have earnings reported to the Incomes Register in every year, and
- whose TyEL insurance has not ended during this time due to a transfer to another pension company.
The constancy discount is calculated based on the annual payroll of the employer or group from the previous year. It is a factor that reduces the basic expense loading fee after a possible customer-specific large-scale company discount. The amount of the constancy discount is 10–29%.
The constancy discount is applied automatically in the TyEL payment when the conditions are met.
Elo's customers receive an annual customer rebate, which is accounted for as a one-time adjustment on the TyEL invoice in the spring.
The client bonus is the portion of the pension company's profit transferred to the customer, and its amount is influenced by the pension company's solvency. The Ministry of Social Affairs and Health confirms the company-specific rebate criteria. At Elo, client bonuses are distributed based on the funds accumulated for insurances and the insurance premiums paid.
The client bonus affects the total TyEL payment, but it is not considered in the monthly TyEL payment collected from earnings notifications.
Large-scale employer and payment categories
The payment category affects the TyEL payment for large employers. The employer's payroll sum from two years ago determines who is a large employer. In 2026, your company is a large employer if the payroll sum exceeded 2 455 500 euros in 2024 (2025: 2 337 000 euros year 2023).
The payment category is determined by the number of permanent disability and partial disability pensions granted to employees. As a large employer, you can find the TyEL insurance payment category in Elo's online service.
- Read more in the Large Employer's Insurance Payment Guide (PDF)
- Read more about the renewed payment category model for large employers
Work ability management promotes smooth work as well as employees' work ability, health, and safety. It involves good everyday management, where in addition to performance management, work ability issues are proactively addressed. The effects of work ability management are concretely visible in sickness absence and disability costs, as well as in the company's productivity. The goal of Elo's work ability management services is to help client companies manage disability risks.