Finland Announces Modest Increases to Statutory Health Insurance Contributions for 2026
Effective January 1 through December 31, 2026, Finland will implement slightly higher statutory health insurance contribution rates for both employers and insured persons. The changes, while moderate, will impact employer payroll costs, employee withholding, and certain pension and benefit incomes. Multinational organizations with Finnish operations should take note of these updates to ensure compliance and accurate payroll planning.
Core 2026 Health Insurance Rates
- Employer health insurance contribution: 1.91% of wages (up from 1.87% in 2025).
- Employee health care contribution: 1.10% of income taxable in municipal taxation (up from 1.06%).
- Employee daily allowance contribution: 0.88% of wages/entrepreneurial income for annual income at least EUR 17,255 (up from 0.84% and threshold EUR 16,862).
Employer and Employee Components
Employees covered by Finnish health insurance will see their personal contributions split into two parts: a medical care contribution (1.10% on income taxable in municipal taxation) and a daily allowance contribution (0.88% on wages or trade income, applicable only when annual income meets the EUR 17,255 threshold). Employers, meanwhile, pay a separate health insurance contribution at 1.91% of wages for insurance purposes.
Pension and Benefit Income
For those receiving pension or social-benefit income subject to municipal taxation, a medical care contribution of 1.49% will apply in 2026, up from 1.45% in 2025. This rate is distinct from wage-based employee contributions and specifically targets taxable pension and benefit income.
Self-Employed Individuals
Self-employed persons will also experience increases. The contribution towards daily allowances will be 1.11% of entrepreneurial income (if annual income is at least EUR 17,255; otherwise, 0%), and the medical care insurance contribution will be 1.10%. Both rates have risen from their 2025 levels of 1.04% and 1.06%, respectively.
Summary Table: 2025 vs. 2026 Rates
| Item | 2025 Rate | 2026 Rate | Notes |
| Employer health insurance contribution on wages | 1.87% | 1.91% | Employer payroll cost |
| Employee medical care contribution on wage/annual earnings | 1.06% | 1.10% | Included in tax withholding |
| Employee daily allowance contribution | 0.84% | 0.88% | Only if income ≥ threshold |
| Income threshold for daily allowance contribution | EUR 16,862 | EUR 17,255 | Annual wages/entrepreneurial income |
| Medical care contribution on pension/benefit income | 1.45% | 1.49% | On taxable pension/benefit income |
| Self-employed daily allowance contribution | 1.04% | 1.11% | If entrepreneurial income ≥ EUR 17,255 |
| Self-employed medical care contribution | 1.06% | 1.10% | On entrepreneurial income |
While the increases are modest, they are relevant for payroll budgeting, employee communications, and tax compliance. Multinational employers should update their payroll systems and inform affected employees about these statutory changes for the 2026 tax year.
This information about Finland increasing statutory health plan contributions is provided by Söderberg, Asinta’s employee benefits consulting Partner in Finland. If you need support with your employee benefits in Finland, please contact Asinta, and we will connect you with the local experts at Söderberg.