Hiring a summer employee? As an employer, remember to take care of their pension cover
Many companies are currently recruiting summer employees. As soon as you have found the right persons for the job, remember to take care of their pension insurance in time. Equally, as a private individual, you need to remember that you become an employer if you are hiring for example a babysitter, a caretaker for your summer cottage or a person to mow the lawn for the summer.
The obligation to insure employees applies, when specific conditions are met, to each and every employer – both companies and private individuals. Below is a summary of insuring seasonal employees and a checklist to help you when hiring employees.
Please remember that all paid wages and fees must be reported to the Incomes Register – wages paid to persons under 18 years of age and foreign employees must also be reported and there is no minimum limit in euros.
Checklist for hiring a summer employee
Define the tasks for which you require a summer employee/employees. Consider what is required to carry out the tasks and what kind of employee you are looking for.
A young employee’s maximum working hours depend on their age. For an employee who has turned 15, the working hours (including overtime) are no more than 9 hours per day and 48 hours per week. For employees below 15 years of age, working hours are a maximum of seven hours and no overtime is allowed.
More comprehensive information on young employees’ working hours is available on the Occupational Safety and Health Administration’s website (työsuojelu.fi).
Recruit your summer employees as carefully as your other employees. Check from the employment and business office whether it is possible to receive, for example, a wage subsidy for hiring summer employees or whether your town/city supports the hiring of young people. The TE Office may also provide help in finding summer employees.
3. Make an employment contract
A written employment contract is a good idea. Include in the employment contract at least the amount of pay, working hours, tasks, duration of the employment and its starting date, any applicable collective bargaining agreement and the basis for fixed-term employment.
Also check whether the collective bargaining agreement contains any obligations related to young employees or stipulations in terms of the wages.
4. Provide induction
Provide your summer employee with the same induction as your other employees, even though they will be working for only a short time. A well inducted employee enjoys their work more, is committed and adjusts better both to their work and the work community.
5. Payroll calculation and employment certificate
Give the summer employee a payroll calculation when you pay their wages. Remember to give them an employment certificate when the employment ends.
Handle your TyEL matters in our online service
You will receive your credentials for the employer’s service when your TyEL insurance takes effect. In the service you can manage all pension matters related to your TyEL agreement. If you have previously used only the self-employed person’s online service, you can request to combine both your insurances under the same user ID. You can do this by sending us a message via the self-employed person’s online service.
Our customer service is happy to assist you with any questions about insuring your summer or seasonal employee at the number +358 10 195 000 (mobile call charge/local network charge).
Ilmarinen’s administrative cost will decrease 20% in 2024 – As our customer, you benefit right away!
At the start of next year, Ilmarinen’s administrative cost will decrease by roughly 20 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution will decrease.
Ilmarinen’s Interim Report 1 January to 30 June 2023: Return on investments rose to 3.7 per cent, solvency strengthened and cost-effectiveness continued to improve
The return on Ilmarinen’s investment portfolio was 3.7 (-6.2) per cent, i.e. EUR 2.1 billion. The market value of investments grew to EUR 58.2 (56.3) billion. The long-term average return on investments was 5.8 per cent as of 1997. This corresponds to an annual real return of 3.8 per cent.
EU Framework agreement on cross-border telework 1.7.2023
Some of the EU countries have signed an agreement on cross-border teleworking, according to which an employee working remotely or in-person in two EU countries can, under certain conditions, be insured in the employer's home country instead of their own country of residence.