How much does an employee cost the employer in Finland?
What a monthly salary costs a Finnish employer with pension, unemployment and health insurance contributions.
The salary
What you enter stays on your device while you use this tool. Opening a shared link sends the settings in its address to HowToolbox to prepare the page.
Wages before the employee's taxes
Percent of wages, from your insurer
Pension basis and payroll
Percent of wages, from your insurer
Only above €2,509,500.00 does a higher unemployment rate apply; 0 if under
Total cost a month
€3,579.60
€579.60 on top of the salary (19.32%), accident insurance not added yet
Salary and side costs
- Gross monthly salary
- €3,000.00
- Pension (TyEL) 17.1%
- €513.00
- Unemployment insurance 0.31%
- €9.30
- Health insurance 1.91%
- €57.30
- Total cost a year (× 12)
- €42,955.20
Rules in force since 1 January 2026 (Finland).
Sources: Työeläkevakuuttajat TELA: Työeläkemaksut; Työeläke.fi: Työnantaja tilittää työeläkemaksut; Työllisyysrahasto: Työttömyysvakuutusmaksun maksaminen; Kela: Sairausvakuutusmaksut (työnantajat).
Checked 21 October 2026
What this means
- Add your accident insurance rate: most employers must have it, and the insurer sets its price.
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Withheld from the employee's salary
- Pension (TyEL)
- 7.3%
- Unemployment insurance
- 0.89%
What a monthly salary costs a Finnish employer with pension, unemployment and health insurance contributions.
How to use
- Enter the gross monthly salary.
- Add the accident insurance rate from your insurer's offer or invoice.
- Under Pension basis and payroll, pick a small employer's fixed rate or an occasional employer if that fits you, and add group life insurance and a large payroll if they apply.
How it works
In Finland an employer pays statutory social contributions on top of each salary: the earnings-related pension contribution (TyEL), unemployment insurance and health insurance, plus accident and group life insurance bought from an insurer. This tool uses the Finnish rates of the current year; it does not apply to other countries.
Each contribution is a percentage of the gross salary: total cost = salary × (1 + the employer's rates). In 2026 the employer's TyEL share is 17.1 % on average, unemployment insurance 0.31 % (1.23 % on the part of a large payroll above the limit) and health insurance 1.91 %.
The rates come from the Finnish Pension Alliance TELA, Työeläke.fi, the Employment Fund (Työllisyysrahasto) and Kela. Accident and group life insurance are priced by each insurer, so you enter them. Holiday bonuses, sick-leave pay and other costs from collective agreements are not included.
Worked example
What does a €3,000.00 monthly salary cost a Finnish employer in 2026?
- With average pension contributions, the lower payroll band and zero accident and group life rates: €513.00 + €9.30 + €57.30 = €579.60.
- €3,000.00 + €579.60 = €3,579.60.
€3,579.60
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Frequently asked questions
Why is the TyEL rate an average?
A larger employer's pension contribution depends on its own size and history, so the true rate comes from its pension insurer. Small contract employers pay a fixed rate, which you can pick under Pension basis and payroll.
What does the employee pay?
The employee's own pension and unemployment insurance shares are withheld from the salary, as the table below the tool shows. They lower the employee's net pay, not the employer's cost.
What about holiday pay?
Holiday pay is part of the salary paid for the holiday months. Holiday bonuses (lomaraha) come from collective agreements, not from law, so they are not added here.
When do the rates change?
Usually every January. The page shows which year's rates it uses.
Does the total include equipment and office costs?
No. It includes wages and the contributions shown. Budget separately for equipment, premises and other overheads.
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