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Act ratified: company-specific expense loading fee into effect on 1 January 2023

Pension insurance companies will introduce a company-specific TyEL expense loading component as of 1 January 2023. The legislative reform regarding the matter came into force on 1 June 2022, and the Ministry of Social Affairs and Health confirmed the new company-specific calculation grounds on 6 June 2022.

In future, the administration cost component will be determined in a company-specific manner. Until now, the expense loading fee has been determined in the same way by all pension insurance companies. In 2022, the average expense loading component is 0.51% of the payroll.

The level of the expense loading component is affected by the amount of costs accrued to the company for managing the insurance policies. The change will motivate companies to manage their duties as efficiently as possible. This is directly reflected in the reduction to the contributions paid by the customer.

In terms of customer groups, the level of the expense loading fee is determined on the basis of the costs accrued to the pension insurance company for managing the insurance policies of each customer group. The cost is determined equally for all customers.

The company-specific expense loading fees will affect TyEL contributions from the year 2023 onwards. The change does not apply to YEL insurances or temporary employees; for them, the cost is the same in all companies.

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