Employee’s social security

Take out TyEL insurance

As an employer, you are in charge of your employees’ pension cover and other social security. As an entrepreneur, you are responsible for your own social security. All you need to do is pay your social insurance contributions on time.

Pension cover is included in the Finnish social security system. You are a part of this system, when you work or live in Finland. As an employer, your task is to arrange pension cover and other social security for your employees, and as an entrepreneur, for yourself. That is easy to do by paying the required social insurance contributions, which are explained in our table below.

If you do not employ anyone besides yourself, read more about social security for the self-employed.

Employer’s social insurance contributions and income limits in 2019

Employer’s TyEL contribution rates

Employer’s TyEL contribution rates   2020 2019


At least one permanent employee or when the payroll for six months is at least EUR 8,676 


The payroll in 2018 is less than

25.3 % (1.1.-30.4.)

22,7 % (1.5.-31.12.)  

25.2 %

The payroll in 2018 is more than

the contribution is also affected by the company’s own disability pensions

the contribution is also affected by the company’s own disability pensions


The payroll for six months is less than €8,676 or there are no permanent employees


25.3 % (1.1.-30.4.)

22,7 % (1.5.-31.12.)

25.2 %


The employer takes out TyEL insurance, and the employee pays part of the TyEL contribution. The employer deducts the employee's share of the contribution from the employee's pay and pays us the total contribution.


7.15 % 6.75 %


8.65* % 8.25* %


7.15 % 6.75 %

*The contribution rate for employees over 53 takes effect at the start of the month after the employee turns 53 and continues until the end of the calendar month when the employee turns 63.

YEL and TyEL limits

Insurance 2020 2019
Lower limit Upper limit Lower limit Upper limit
YEL €7,958.99 €180,750.00 €7,899.37 €177,125.00
TyEL €70.57 - €59.36 -

YEL insurance has a lower and upper limit, TyEL insurance has a lower limit. The YEL limits concern YEL confirmed income and the TyEL limit concerns the payroll. Take out insurance when the lower limit is exceeded.

Take out YEL insurance    Take out TyEL insurance

Employer’s social security contribution

Contribution in 2020, % Contribution in 2019, %
1.34 % 0.77 %

As an employer, you pay the social security contribution, i.e. the health insurance contribution, for employees aged between 16–67. You pay it to the tax authority at the same time as you pay the withholding taxes.

Health insurance contribution paid by the insured

Who pays

2020, contribution, %

2019, contribution, %



1.33 % 1.77 %

The contribution is distributed as follows:

1.18 % daily allowance contribution
0.15 % entrepreneur’s additional funding contribution
0 % medical care contribution


1.86 % 1.54 %

The contribution is distributed as follows:

1.18 % daily allowance contribution
0.68 % medical care contribution

Pensioner 1.65 % 1.61 %  

The contribution is included in the withholding tax rate and concerns the self-employed and employees.

Workers’ compensation, unemployment and group life insurance

Insurance Who pays 2020, contribution, % 2019, contribution, %

Workers’ compensation insurance, average

Wages and the risks of the work determine the contribution rate.
Take out insurance from a non-life insurance company.


0.70 % 0.70 %

Unemployment insurance, average

The payroll affects the contribution rate.
Take out insurance from the Unemployment Insurance Fund for employees aged 17–64.

Employers with a max. payroll of €2,125,500

0.45 % 0.50 %
Employers with a payroll of more than €2,125,500 1.70 % 2.05 %
Employee 1.25 % 1.50 %
Employer for a part-owner 0.45 % 0.50 %
Part-owner 0.65 % 0.78 %

Group life insurance, average

You take out group life insurance automatically when you take out workers’ compensation insurance. The non-life insurance company collects the contribution in connection with this insurance and pays it into the Employees’ Group Life Assurance Pool. Claims are handled by the Finnish Workers' Compensation Center, http://www.trhv.fi/ or http://www.tvk.fi/.

Employer 0.07 % 0.07 %

Index figures and life expectancy coefficient

  2020 2019
Wage coefficient 1.446 1.417
Earnings-related pension index 2617 2585
Life expectancy coefficient 0.95404 (b. 1958)

0.95722 (b. 1957)

The wage coefficient affects the amount of earnings and the YEL confirmed income. The earnings-related pension index affects the pension amounts. The life expectancy coefficient decreases the amount of pension as life expectancy increases.


Interest Period 2020 2019 
Insurance contribution interest rate, TyEL* 1 Jan.–30 Jun.  2.0 %  2.0 %
1 Jul.–31 Dec.    2.0 %
Insurance contribution interest rate, YEL* 1 Jan.–31 Dec.  2.0 %  2.0 %
Late payment interest 1 Jan.–30 Jun.  8.0 %  8.0 %
1 Jul.–31 Dec.    8.0 %

*The insurance contribution interest rate is set twice a year based on the dates of 15 Nov. and 15 May, entering into effect on 1 Jan. and 1 Jul. When calculating the YEL insurance contributions, the insurance contribution interest rate remains the same throughout the year.

Employee’s social security contribution and four types of insurance – employer’s checklist

The arrangement of pension security and other social security is mostly affected by whether you are a temporary employer or a contract employer. As a temporary employer, you often only need to arrange pension cover, but as a contract employer, you are usually required to arrange other social security. In this case, take out four insurance policies and pay the social security contribution.

Find out if you are a temporary employer or a contract employer

The four insurance policies that you need to take out are:

  • employee’s pension insurance, i.e. TyEL insurance
  • workers’ compensation insurance
  • group life insurance
  • unemployment insurance

In addition, pay the employer’s social security contribution, i.e. the health insurance contribution, to the tax authority.

These policies are for your employees and their families’ assistance if they get injured, die or become unemployed, and when they stop working or retire on old-age pension. Because social security is based upon these insurances, they are statutory, i.e. mandatory. The contributions are a specific percentage of employees’ earnings and this percentage is the same for all insurance companies. The contributions are lower with certain discounts, such as client bonuses, which, in Ilmarinen’s case, are in good shape.

We can provide you with TyEL insurance and our partner OP can provide you with workers’ compensation insurance. You do not need to take out separate group life insurance as it is included in the workers’ compensation insurance. Unemployment insurance can be granted only by the Unemployment Insurance Fund (TVR).

Take care of your pension cover, take out TyEL insurance