Employer’s pension insurance i.e. TyEL

As an employer, you need to take out earnings-related pension insurance if you employ at least one person on a permanent basis and pay at least EUR 8,790 in wages or salaries during a period of six months ( 8,676 in 2020). If you are a temporary employer, you only have to pay the earnings-related pension contribution.

TyEL insurance provides pension security for your employees

When you hire an employee, take out TyEL insurance and report the earnings data to the Incomes Register regardless of whether you are a long-term or temporary employer. Household employers also need to provide pension insurance for their employees. With TyEL insurance you take care of your employees’ pension cover. That is why TyEL insurance is statutory, i.e. mandatory.

Earnings paid to employees are always reported to the Incomes Register regardless of their size.

Read more about reporting earnings data to the Incomes Register

When does an employee need to be insured?

Take out TyEL insurance, when your employee meets the following three conditions

  • he or she is in an employment relationship,
  • he or she is aged between 17–67 and
  • you pay him or her at least EUR 61.37 per month (60.57 in 2020).

How much does TYEL insurance cost?

The TyEL contribution is determined based on the earnings payment reports made to the Incomes Register. The TyEL contribution is a percentage of the salaries and wages that you pay to your employees as an employer. The client bonus reduces your insurance contribution. It is based on Ilmarinen’s solvency and the efficiency of our operations. You receive the client bonus when your TyEL insurance is in force with Ilmarinen and you are a so-called contract employer. The employer does not pay the TyEL contribution alone; employees also pay their share of it.

Use the TyEL-calculator to estimate the size of the TyEL contribution and see how changing the due date affects the contribution.

Go to the TyEL-calculator

Insuring work abroad

Are you posting an employee to work abroad? Or is an employee coming from abroad to work in your company? Make sure that your employee’s pension cover is taken care of.

Read more about insuring work abroad

Being Ilmarinen’s customer pays off

When taking out earnings-related pension insurance, choose a partner who is a pleasure to deal with and who provides you what you need. We pay the largest client bonuses, which means lower insurance contributions for our customers. That is why choosing Ilmarinen as an insurance partner pays off.

Employer, become Ilmarinen’s customer

Are you unsure about something to do with taking out insurance? Call our insurance sales team at +358 10 284 2385 from Monday to Friday between 8 a.m. and 4 p.m.

Contact us