EMPLOYEE’S PENSION CONTRIBUTION

The employee’s contribution is included in the TyEL contribution. The employer deducts the employee’s share from his/her salary.

The employer pays the insurance premium in full and deducts the employee’s share from the salary. The rate of the employee contribution (in 2012) is

• 5,15% of earnings for employee under 53
• 6.5% from the beginning of the month following the month in which the employee reaches the age of 53.

The employee's pension contribution is deducted from all work. This includes positions of trust with voluntary insurance, working abroad, monthly earnings at least 54.08 euro, and earnings of pensioners.

If deduction of the employee's pension contribution has been omitted, the contribution can be deducted afterwards in connection with the following two payments of wages. If earnings in some months consist only of perquisites, the employee's pension contribution can be deducted during the year in connection with the payment of wages. The employee’s pension contribution will also be deducted from those voluntarily insured on account of a position of trust and from the TyEL income of voluntarily insured employees abroad.