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A temporary reduction of 2.6 percentage points on employers’ TyEL insurance contributions as of 1 May 2020

This reduction concerns TyEL insurance contributions linked to salaries/wages paid during the period of 1 May–31 December 2020.

The reduction of 2.6 percentage points only applies to the employer’s share of the contribution, which means that it has no effect on the employee’s share of the contribution. The reduced percentage will be taken into consideration for the first time in TyEL contributions due for payment at the end of June.

Customers do not need to separately contact Elo with regard to the reduction. The temporary reduction will be automatically taken into consideration in the TyEL insurance contributions.

The earnings-related pension scheme’s provision for pooled claims is being used to facilitate the reduction. The provision for pooled claims will be restored by increasing the employer's contributions during the years 2022–2025 until full compensation has been made for the impact of the temporary reduction.

During the reduction period, customers will not accrue client bonuses, so the amount of the client bonus for 2021 will equal one third of the normal amount. The client bonuses for 2020 will be paid or have been paid as usual.

Read our customer information concerning the coronavirus situation >

 

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