Employer’s social security contributions
As an employer, you need to take care of your employees’ pension cover and other social security.
Lower limit for TyEL insurance
You need to take out TyEL insurance for your employee when the salary that you pay him or her exceeds a specific lower limit. The limit changes annually. In 2023, it is EUR 65.26 per month (in 2022 EUR 622.88). This monthly TyEL lower limit refers to the gross salary that you pay to your employee. Even if the salary that you pay to your employee remains below the TyEL lower limit, you should report it to the Incomes Register.
TyEL contribution percentage
For small contract employers, the earnings-related pension insurance contribution will be a maximum of about 25.55 per cent of the payroll at Ilmarinen, when the expense loading is taken into account.
The TyEL contribution by temporary employers will be 26.20 per cent of the payroll. A temporary employer’s contribution is the same size in all pension companies.
You can check your insurance contribution percentage in our employer’s service. You can log in to the employer’s service here.
If you are a contract employer, your TyEL contribution is 25.85% in 2022, when the payroll amount is below EUR 2,169,000 (in 2020). If you are a temporary employer, your TyEL contribution is 25.85%.
Employees’ age limits
You must take out TyEL insurance for all of your employees aged between 17 and 67 years. The obligation to insure starts from the beginning of the month following the employee’s 17th birthday. For example, if your employee turns 17 in June, you must insure him or her as of the beginning of July.
Your obligation to insure ends depending on the year in which your employee was born. If your employee was born
- in or before 1957, you do not need to insure him or her after he or she has turned 68
- in 1958–1961, you do not need to insure him or her after he or she has turned 69
- in or after 1962, you do not need to insure him or her after he or she has turned 70.
Employee’s pension insurance contribution 2022 and 2023
ages 17–52 7.15%
ages 53–62 8.65%
ages 62–68 7.15%