Am I a contract employer or temporary employer?
As an employer you take care of your employees’ pension cover. You can do this in two ways. Depending on your situation you can do this as a contract employer or temporary employer.
Do I need TyEL insurance?
If your company has at least one permanent employee or pays more than 10,272 euros in wages during a six-month period in 2026, you need to take out a TyEL insurance policy. In that case, you are considered a contract employer.
If your payroll stays below this amount and you do not employ workers on a continuous basis, you are considered an temporary employer. In that case, you do not need a separate TyEL insurance policy. Instead, you arrange your employees’ pension cover by paying TyEL contributions.
Whether you are a contract employer or an temporary employer, you are responsible for arranging your employees’ pension and accident insurance and for reporting wages to the Incomes Register. As a contract employer, you also receive valuable benefits, such as client bonuses that reduce your insurance costs. You will also have access to free services and tools that help you support your employees’ work ability and well-being at work.
Contract employer
You become a contract employer when you take out a TyEL insurance policy from a pension insurance company. You need a TyEL insurance policy if:
- you have at least one employee in continuous employment, or
- the wages you pay to your employees exceed 10,272 euros over a six-month period in 2026.
The basic TyEL contribution is 24.85% of payroll in 2026. An administrative cost is added to this amount. At Ilmarinen, your total TyEL contribution is no more than 25.03% of payroll.
If you already have a TyEL insurance policy, simply insure any temporary employee under the same policy.
Read more about the TyEL contribution for contract employers
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You must report all wages you pay to the Incomes Register within five days of the payday.
As a contract employer, you will need your TyEL insurance number (pension policy number) when submitting the report. Make sure you take out your TyEL insurance well before reporting payroll information, and no later than the day before you submit the report. -
The pension policy number is the same as the TyEL insurance number. You can find it in the insurance policy or by logging in to the online service for employers. The insurance number starts with 46 and is 11 characters long.
Temporary employer
As a temporary employer, you have the same responsibilities to arrange your employees’ accident and pension insurances and to report wages to the Incomes Register. You can act as a temporary employer if:
- you pay wages to an employee under an employment contract
- you do not employ atleast one permanent employee
- the wages you have paid to employees under an employment contract over six months total less than 10,272 euros in 2026.
As a temporary employer, you do not need a separate TyEL insurance policy. Instead, when you submit an earnings payment report to the Incomes Register, select Ilmarinen (46-3000000V) as the pension provider. You will receive an invoice within a few days.
You are welcome to become a contract employer
Even if you can arrange your employees’ pension cover as a temporary employer without a TyEL insurance policy, taking out a policy is worth considering. Thanks to client bonuses, Ilmarinen’s TyEL contribution for a contract employer is no more than 25.03% of payroll, while the TyEL contribution for a temporary employer is 25.85% in 2026. The TyEL contribution for occasional employers is the same in all employment pension insurance companies. You will also gain access to free services that support your employees’ work ability and well-being.
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You must report all wages you pay to the Incomes Register within five days of the payday.
As a temporary employer, indicate in the payer details of the earnings payment report that you are an occasional employer and select Ilmarinen as the pension provider. Ilmarinen’s pension provider code is 46.
An accounting firm can submit a temporary employer’s payroll information to the Incomes Register through a technical interface. In these cases, the report must include a pension policy number. If you submit the earnings payment report on a paper form or electronically through a direct interface from your payroll software (such as Procountor), add Ilmarinen’s technical insurance number 46-3000000V to the payroll system. However, make sure that the employer does not already have a valid TyEL insurance policy.
Read more about reporting earnings data to the Incomes Register
Get TyEL insurance
You get more from us than just insurance
- Excellent work ability services for companies of all sizes
- Warm and knowledgeable customer service
- Competitive price and excellent client bonuses
- Personal counseling
Get TyEL insurance online. Let's work together to ensure a good tomorrow for your employees.
Great news! As of the beginning of 2026, up to 90% reduction in TyEL insurance's adminstrative costs for micro-employers.
Households as employers
When you hire a cleaner, painter, child care provider or some other helper to work at your home or cottage, in your yard or your forest, you become a household employer. Take care of your employees’ pension cover just like other employers.
Read more about household employers
Employer’s payroll service
As a temporary employer, you can conveniently calculate wages and arrange your employees’ pension cover in the Palkka.fi or Oima service. These services send the earnings payment data to the Incomes Register.
If the person you hire is self-employed, he or she will take care of his or her own earnings-related pension and other statutory contributions. If the person works for a company, the company will take care of the contributions. Check this before you hire an employee, for example in the Business Information System (ytj.fi). If a self-employed person or company are not part of the Prepayment Register, you have to take care of the withholding tax.