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When a private employer – including private households – hires an employee, the employee’s pension cover falls under TyEL.

The easiest way for employers to take care of earnings-related pension matters is online. Online you can take out insurance and report information, pay contributions, order certificates and apply for pensions.

Learn more about Ilmarinen’s online services

Earnings-related pension insurance in bried

The employer pays pension contributions for almost all the earnings of his/her employees between the ages of 18 and 67 and this accrues earnings-related pension. The employer can insure voluntarily monthly earnings less than EUR 56.55 (2014).

Pension contributions are also paid based on the earnings of pension recipients until the age of 68.

Foreign employers operating in Finland are required to insure their employees according to TyEL. If a Finnish employer sends an employee to work overseas temporarily, the employee’s pension insurance is covered by TyEL insurance in Finland.

If you are an independent entrepreneur you need to arrange your pension cover according to YEL. Some of the owners working in a company are insured according to TyEL, and some according to YEL.

The employer pays the entire earnings-related pension contribution but deducts the employee’s share from his/her salary. In 2014 the basic TyEL insurance contribution is 24.2 per cent of the payroll. Client bonuses may reduce the employer contribution. They are determined based on insurance contributions and the length of the customer relationship, among other things. The pension contribution of an employee under 53 years of age is 5.55 per cent and for employees 53 and over 7.05 per cent of their earnings.

For further information about social insurance contributions see our brochure

Social insurance contributions 2014 (pdf)