When to insure an employee?
Usually all employee earnings are subject to TyEL insurance contributions and accrual of pension. Earnings are insured if
- the employee is between 18 and 67 years of age. The obligation to insure an employee starts from the beginning of the month following the employee's 18th birthday and expires at the end of the month when the employee turns 68.
- the employee's earnings are at least 51,57 euro (in 2010) per month. The earnings can consist of several employment relationships with the same employer during the same month. Earnings below this limit can be voluntarily insured by the employer.
Insurance is also paid on pensioners' earnings
Insurance contributions are paid and pension contributions deducted from pensioners' earnings even if the person is receiving an unemployment, disability, or partial disability pension, or an old age pension for pensioners under 68. Additional pension will thus accrue from the employment.
Contract employer or temporary employer
Pension coverage for an employee must be arranged at the latest during the month following the first month of payment of wages. Delayed insurance results in increased insurance contributions for the retrospective period..
According to TyEL, the employees are divided into two categories: those with at least one permanent employee and those who employ temporarily.