Household as an employer

Customer service | 010 284 3714

Insure employees in your home

When you hire a cleaner, painter, child care provider or some other helper to your home or your cottage, you become an employer. A household employer. The rights of an employer also bring with them the responsibilities of an employer.

One of your responsibilities is to take care of the pension cover of your employee. This becomes your responsibility when you pay at least a specified minimum amount of salary or wages. In 2018, that sum is EUR 58.27 per month (58.19 in 2017). Read more about when household employers need to pay TyEL contributions.

Take care of the pension insurance of your employee by paying earnings-related pension contributions, i.e. TyEL contributions. How you do this depends on whether you are a temporary employer or a contract employer. Usually it will be necessary to cover your employee with an insurance against occupational injuries and diseases. Both of these insurances are statutory, i.e. mandatory. You can receive a deduction for household services.

If your employee works for you as an entrepreneur or as an employee of a company, you are not their employer. In that case, you are not obliged to take care of the pension cover of the employee or any other employer responsibilities.

If you are a temporary employer, log in here.

Temporary employer's service

If you are a contract employer, take out TyEL insurance and report earnings here.

Take out TyEL insurance  Report earnings

Good to know about the tax credit for domestic expenses

You can receive a tax credit for domestic expenses for hired renovation, repair and maintenance work performed on your home or your holiday home, and for domestic work. You can deduct part of the expenses from your taxes as a tax credit for domestic expenses.

 

As a household employer you can be either a temporary or contract employer. Whichever you are affects how you take care of your employee’s pension cover.

You are a temporary employer when both of these hold true in your case:

  1. You temporarily hire one employee or more for your house, yard or forest, for example a cleaner, painter, child care provider, carer for the elderly, renovator or building maintenance personnel.
  2. You pay a specific sum in wages and salaries, altogether less than EUR 8,346 for six months in 2018 (8,334 in 2017).

You become a contract employer when even one of the following conditions applies to you:

  1. One employee or more works continuously in your home, yard or forest, such as a cleaner from one month to the next or a cleaner this month, a gardener the next month and a forest worker the month after that.
  2. You pay your employees a specific sum in wages, in total at least EUR 8,346 for six months in 2018 (8,334 in 2017).

If you are not sure which you are, give us a call. Our customer service can be contacted at +358 10 284 3714. 

As a temporary employer you can easily arrange for your employee’s pension cover on the Household Employer Service. Visit the service at the latest by the 20th of the month following the payment of wages or salaries. When you submit the information concerning your employee, the service calculates the relevant TyEL contribution. Pay the contribution at the end of your visit.

A temporary employer’s TyEL contribution is a specific percentage of the wages or salary. In 2018, the percentage is 25.3 (25,1 in 2017). Both you and your employee pay the contribution. You need to collect your employee’s share of the contribution from his or her pay and then pay us the entire TyEL contribution.

The employee’s pension insurance contribution as of 1 January 2017 is equal in size in all of the age groups. However, during the transition period up to the end of 2025, the employee’s contribution between the ages of 53 and 62 is higher than for the other age groups. This is due to the larger pension accrual during the transition period. The larger contribution is applied from the beginning of the month in which the employee turns 53 years to the end of the month in which she or he turns 63.

You do not need to remember or calculate these percentages. Just go to the Temporary Employer's Service (in Finnish).

Employee contribution, % of pay

2018

2017

Employee under 53 years of age

6,35

6,15

Employee between 53 and 62
years of age

7,85

7,65

Employee that has turned 63

6,35

6,15

If you pay less than 1,200 euros (year 2018) for work during the calendar year, your responsibilities end here. You have also done all you need to if you pay your employee less than the minimum limit specified by the tax authorities. 

Temporary Employer’s Service

As a contract employer you need to arrange your employee’s pension cover by taking out TyEL insurance on his or her behalf. And by taking a few other measures. You are required to pay the ordinary TyEL insurance contribution. It is also based on the salary or wages you pay to the employee. Both you and your employee pay the contribution. You need to collect your employee’s share of the contribution from his or her pay and then pay us the entire TyEL contribution. The internet service is available only in Finnish and Swedish.

Take out TyEL insurance 

You can also fill in and print out an application for TyEL insurance (PDF) and send it to Ilmarinen by post.

If you already have TyEL insurance you can insure your temporary employee under the same insurance. To do that, just report to us the salary you have paid to your employee and other information concerning him or her. You can do so easily on our online service. 

Report earnings

Sometimes you are required to take out three other insurance policies for your employee: an insurance against occupational injuries and diseases, unemployment insurance and group life insurance, which are all statutory. They are necessary whether you are a temporary employer or a contract employer.

Take out an insurance against occupational injuries and diseases (the service is in Finnish) and unemployment insurance when you pay more than 1,200 euros for work during the calendar year. You can take out an insurance against occupational injuries and diseases from any accident insurance company but unemployment insurance can only be granted by one instance, the Unemployment Insurance Fund. You do not need to take out a separate group life insurance as it is included automatically in the insurance against occupational injuries and diseases.

If you pay your employee less than the minimum limit specified by the tax authorities, your responsibilities end here.

Otherwise you need to take care of some business with the tax authorities. Deduct taxes from the pay and pay the employer’s social security contribution, i.e. the health insurance contribution. If the pay falls below the minimum limit you do not need to worry about either of these.

Are you considering hiring a new employee?

Our salary calculator helps you to get a sense of the incidental wage costs involved in hiring a new employee or a pay rise. The calculator uses rates for current year. 

Fill in the employee´s data

Age

Breakdown of salary costs

Employer´s contribution

Due gross pay to the employee

Total hourly wage 0,00 ?
Holiday compensation 0,00 ?
Total gross pay0,00

Employer´s costs

Health insurance contribution 0,00 ?
Earnings-related contribution 0,00 ?
Unemployment insurance contribution 0,00 ?
Accident insurance contribution 0,00 ?
Group life insurance 0,00 ?
Total incidental costs0,00

Employee´s contribution

Costs to be withheld from salary

Earnings-related contribution 0,00 ?
Unemployment insurance contribution 0,00 ?
Tax on income 0,00 ?
Amount to be paid to the employee0,00

The employer´s costs vary according to the sector of industry and the company´s size. The default values used in the calculator are averages. Verify the conclusive rates and contributions from the tax authorities, KELA, your insurance company and from the collective agreement of the branch in question.