Employer's social security costs 2026: what an employee really costs

Statutory contributions 2026

The largest non-wage labour cost is the earnings-related pension (TyEL) contribution. In 2026 the average TyEL contribution is 24,40 % of wages, of which the employee pays 7,30 % and the employer an average of 17,10 %. The employer's contribution fell by 0,28 percentage points from 2025. The employer's health insurance contribution is 1,91 %, which is 0,04 percentage points more than in 2025.

The unemployment insurance contribution for the employer is 0.31% when the payroll is at most €2,509,500, and 1.23% on the portion exceeding that. The accident and group life insurance premium depends on the risk of the field. The insurer's average estimate is about 0.51% for accident insurance and 0.06% for group life insurance.

TyEL, employer's share: 17.10% (average)
Health insurance contribution: 1,91 %
Unemployment insurance contribution: 0.31%
Accident insurance: about 0,51 % (estimate, industry-specific)
Group life insurance: 0,06 %
Total: approx. 19.9%

Employee's own contributions

The employer is responsible for ensuring that both its own and the employee's contributions are calculated, withheld and reported to the Incomes Register correctly. For a small employer, the free Palkka.fi service calculates the contributions automatically.

Invoice example: a monthly salary of 3,000 euros

With a gross salary of €3,000 a month, the employer pays on top of it about €513 in TyEL contributions, €57.30 in health insurance contributions, €9.30 in unemployment insurance contributions, and about €17.10 in total for accident and group life insurance. Statutory ancillary costs total about €597, and the monthly cost is about €3,597.

Salaries alone, including ancillary costs, come to about 43,160 euros a year. The figure is indicative, because the accident insurance premium and the TyEL contribution vary by company size, industry and insurer.

Holiday bonus and annual leave

Under the Annual Holidays Act, leave accrues at two working days a month, and two and a half days when the employment relationship has lasted continuously for at least a year by the end of the leave-earning year. Leave accrues for months with at least 14 working days or 35 working hours. Holiday pay is paid for the period of leave.

The holiday bonus is not based on law but on a collective agreement. According to the occupational safety and health authorities, it is often 50 % of holiday pay. If holiday pay corresponds to about a month's salary, the holiday bonus for the example employee is about 1 500 euros a year, and non-wage labour costs are paid on that too. Check your own sector's collective agreement.

Sick pay

Pay during sick leave is governed by the Employment Contracts Act and, in more detail, by collective agreements, so check the terms for your own field. Kela's sickness allowance waiting period is the day you fall ill plus the following nine working days. If the sick leave continues after that and the employer pays wages, Kela pays the allowance to the employer.

The allowance must be applied for within two months of the start of incapacity for work. The application is made in Kela's employer sickness allowance and compensation service or through the Incomes Register. A late application means that sick pay is left entirely as a cost to the employer.

Occupational health care

The employer must arrange preventive occupational health care for employees. Kela reimburses part of the necessary and reasonable costs. From the start of 2026, Kela has reimbursed costs already from the signing of the employment contract, whereas previously reimbursement began only when work started.

Cost and upcoming changes

When statutory contributions, holiday pay and occupational healthcare are added up, the real annual cost is clearly higher than the sum of gross salaries. Recruitment, induction, equipment and possible sick leave come on top. Budget at least 20 % on top of salary and add holiday pay separately.

Also take into account tax-free expense allowances, on which no ancillary costs are paid. According to the Finnish Tax Administration's decision, the mileage allowance for a work trip made in your own car is at most 0,55 euros per kilometre in 2026, the domestic full daily allowance 54 euros and the partial daily allowance 25 euros. If an employee travels a lot, these should be budgeted separately.

The Employment Fund has proposed that the employer's unemployment insurance contribution fall in 2027 to 0.26% up to a payroll of about €2.6 million. Parliament confirms the contributions in autumn 2026. You can find up-to-date contributions and pay levels by occupation in Salary Radar.

Frequently asked questions

How much are employer's ancillary costs in 2026?

Statutory employer costs are about 19.9 % of pay: TyEL on average 17.10 %, health insurance 1.91 %, unemployment insurance 0.31 % and accident and group life insurance about 0.57 %.

How much does a 3 000 euro salary cost the employer?

About €3,597 per month including statutory ancillary costs. Holiday pay, sick pay and occupational health come on top.

Is holiday bonus mandatory?

The law does not oblige employers to pay holiday bonus. It is based on a collective agreement or employment contract, and is often 50 % of holiday pay.

Who pays sick pay?

The employer pays sick pay in accordance with the Employment Contracts Act and the collective agreement. After the waiting period, Kela pays the sickness allowance to the employer if the employer pays salary and applies for the allowance within two months.

Salary Radar brings together the topic's figures, deadlines and services. Open Salary Radar →

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.