What is the health insurance contribution and why is it charged?
The health insurance contribution is a statutory contribution that we pay automatically to the Tax Administration every time we pay your salary (1.87% in 2025). These contributions are paid by the Tax Administration to Kela and cover the cost of benefits such as sickness allowance, parental allowance, maternity allowance and paternity allowance.
As a billing service company, we act in accordance with the Tax Administration's instructions: 'If the billing service company does not know at the time of payment whether the employee is YEL-insured or subject to insurance, the billing service company must pay the employer's health insurance contribution on the basis of the salary.'
If you think that you are not covered by the YEL insurance, it is sufficient to inform us in writing. After that, no health insurance contribution will be charged on the wages paid. Please note, however, that if your invoices exceed the YEL insurance threshold (€ 9 208.43 in 2025), the health insurance contribution will be automatically activated.
You can read more about this on the Tax Administration's website.