Finland – Changes To Health Insurance and Unemployment Contribution Rates
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Changes To Health Insurance and Unemployment Contribution Rates
Changes in health insurance contribution rates
Employers are required to pay health insurance contributions for employees aged 16 to 67 who are covered by the Finnish social insurance system under the Health Insurance Act. This obligation applies even if no tax is withheld, such as when wages are provided as fringe benefits or when the employee’s tax card specifies no withholding. However, health insurance contributions are not applicable to trade income. Employees must also pay a health insurance contribution, which is included in their withholding rate, eliminating the need for employers to deduct it separately from wages.
For employees working abroad, wages may be tax-exempt in Finland under the six-month rule. Nonetheless, both the employee’s minimum health insurance contribution and the employer’s health insurance contribution must still be paid for insurance purposes.
| Employee / Employer | 2024 Rate | 2025 Rate |
|---|---|---|
Employee-
|
|
|
| The minimum withholding (health care contribution and daily care contribution) | 0.51%, if incomes are under €16,499 | 1.06%, if incomes are under €16,862 |
| Employer’s Health insurance contribution | 1.16% | 1.87% |
| Medical care contribution on pension and social-benefit income | 1.48% | 1.45% |
| Increase of the daily allowance contribution for self-employed individuals with YEL insurance | 0.22% | 0.20% |
| Self-employed individual’s increased daily allowance contribution | 1.23% | 1.04% |
Unemployment insurance contribution
Employers are required to pay unemployment insurance contributions if the total wages paid to employees during a calendar year exceed €1,500. This contribution applies to employees aged 18 to 64 years (previously 17 to 64 years).
Employees are also responsible for unemployment insurance contributions. As an employer, you must calculate these contributions based on the total wages and fringe benefits, and deduct the employee’s share directly from their net wages. This insurance obligation also extends to the company’s co-owners.
| Pay to the Employment Fund (Työllisyysrahasto/Sysselsättningsfonden) | 2024 Rate | 2025 Rate |
|---|---|---|
| Employee's unemployment insurance contribution | 0.79% | 0.59% |
| Employer’s unemployment insurance contribution |
|
|
| The unemployment insurance contribution of a shareholder-employee | 0.43% | 0.30% |
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Finland – Changes To Health Insurance and Unemployment Contribution Rates – 1 January 20251.59 MB