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Date when measure came into force
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Generic Tax Name Social security contribution (Employees)
Tax name in the national language Työntekijän sosiaaliturvamaksut/Arbetstagares socialskyddsavgifter
Tax name in English Employees social security contributions
Member State FI-Finland
Tax in force since 1963/07/04
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Act on Health Insurance (1224/2004), Employees' Pensions Act, Self-Employed Persons' Pensions Act, Farmers' Pensiosn Act, Seamen's Pensions Act, Local Government Pensions Act, State Employees' Pensions Act, Act on Financing Unemployment Benefits (555/1998).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The beneficiaries are The Unemployment Insurance Fund, The Social Insurance Institution, Employment pension funds.

 
Geographical Scope
 
Taxpayers
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments

Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments

Non-residents who are insured in Finland are liable to social security contributions.



Comments

All income-earners pay health insurance contributions for medical care. Labour income earners pay also unemployment contributions, pension income contributions and health insurance contributions for daily allowance.

 
Tax object and basis of assessment
Employees pay social security contributions for








Comments

Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes























Comments

Income considered Domestic income
Worldwide income
Comments

Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees












Comments


Comments

Health insurance contribution for medical care is paid on the basis of the taxable income for municipal taxation (see Communal Tax on earned income). Unemployment contribution, pension income contribution and health insurance contribution for daily allowance are paid on the basis of gross salary.

Social security contributions of self-employed are paid on the basis of confirmed income under Self-Employed Persons' Pensions Act (YEL).

 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units:
Cap in % of the tax base:

Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
     
Based on salary
Capped
Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Comments

Unemployment contribution, pension income contribution and health insurance contribution for daily allowance are deductable for earned income tax purposes.  Health insurance contribution for medical care is not tax deductable.  

 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees
Pensions

Health care

Unemployment

Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave

Others

Comments

Special surcharges

There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments



Comments

The rate of the health insurance contribution for medical care is 1.32 %. If a person receives other income than labour income, he has to pay an additional health insurance contribution for medical care of 0.17 %.

The rate of the health insurance contribution for daily allowance is 0.78 % of wage income, and 0.91 % of the income of the self-employed.

The employees' pension insurance contribution is 5.7 %. Persons aged 53 years or more pay an additional pension insurance contribution of 1.5 %. The unemployment insurance contribution is 0.65 %.

The pension insurance and unemployment contributions and the health insurance contribution for daily allowance are deductible from the chargeable income when calculating the taxable income for State income tax on earned income, municipal tax and church tax as well as for health insurance contribution for medical care.

The pension insurance contribution for entrepreneurs (sole proprietors)  is 23.7 % (25.2 % for entrepreneurs aged 53 years or older). Farmers' pension insurance contribution is dependent on their labour income. If labour income is less than € 26,281.69, farmers' pension insurance contribution is 12.798 % (13.608 % for persons aged 53 years or older). Contribution rises on a sliding scale and reaches its full amount (23.7 % / 25.2 % for persons aged 53 years or older) at labour income level of € 41,299.87.

 
Tax due date

 
Tax collector

 
Special features
 
Economic function







Comments

 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d6112 and d6113 (part)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 7,826.00 EUR 3.92
2011 7,080.00 EUR 3.60
2010 6,818.00 EUR 3.64
2009 5,978.00 EUR 3.30
2008 5,841.00 EUR 3.02
2007 5,860.00 EUR 3.14
2006 5,634.00 EUR 3.26
2005 4,938.00 EUR 3.00
2004 4,529.00 EUR 2.86
2003 4,415.00 EUR 2.91
2002 4,396.00 EUR 2.96
2001 4,440.00 EUR 3.07
2000 4,349.00 EUR 3.19

Comments