Insuring work abroad

As an employer, it is your duty to always take care of our employees’ pension cover, regardless of whether they work in Finland or abroad. Usually, you are also responsible for arranging their other social security. The country in which you should arrange your employee’s pension cover and other social insurance depends on the country of employment and the duration of the work.

In which country should an employee be insured?

As an employer, you must arrange your employee’s pension cover and usually also his or her other social security, regardless of the employee’s country of employment and citizenship. First find out which country’s legislation you must follow and arrange the pension cover accordingly.

The following circumstances will determine whether you should arrange your employee’s pension cover in Finland or in the country of employment:

  • Is your employee working in an EU or EEA country or in another social security agreement country?
  • Is your employee working in a country with which Finland has no social security agreement?
  • Is your employee working abroad temporarily as a so-called posted worker?
  • Is your employee transferring to work for a foreign company or for a Finnish company or its parent or sister company or subsidiary?

The practice is governed by the EU’s social security regulation and the bilateral social security agreements concluded by Finland.

Employee going abroad from Finland

As an employer, you must arrange your employee’s pension cover also when your employee works outside Finland’s borders. If you post your employee from Finland to a foreign country, arrange his or her pension and social security well ahead of time, regardless of whether the move is temporary or permanent.

Read more about insuring an employee moving abroad from Finland

Employee coming to Finland from abroad

Your employee’s pension cover is your responsibility also when you hire an employee from abroad to work in Finland. Your employee will be covered by Finnish earnings-related pension insurance from the very beginning of his or her employment, if he or she works directly for a Finnish employer and signs an employment contract with a Finnish employer.

Read more about insuring an employee coming to Finland from abroad

Foreign employer

If you represent a foreign employer and hire an employee in Finland, take out pension and social insurance for him or her in accordance with Finnish legislation.

If your company does not have a unit in Finland or if it has not been registered in Finland, your employee can take out pension and social insurance for themselves on your behalf. In that case, authorise your employee to do so with the Finnish Centre for Pensions’ authorisation. The authorisation is a form that you fill in and send to Ilmarinen. We will provide TyEL insurance for your employee based on the information you have submitted.

Download the Finnish Centre for Pensions’ authorisation for taking out pension insurance (etk.fi) >

Also authorise your employee or the representative of another company to use the Incomes Register so that he or she can report the wages you have paid.

Authorisations for using the Incomes Register (vero.fi) >

Pension from employment abroad

Your employee will accrue pension from work carried out abroad in accordance with the legislation of the country where his or her pension insurance has been arranged.

The pension that your employee has earned is always paid to Finland, except if he or she worked in a non-agreement country. All countries of employment do not pay pensions outside their national borders. That is why you should find out about the practices in place in the country of employment together with you employee before posting him or her to work abroad.

Read about how your employee accrues pension from work carried out abroad and how pension is applied for >

If you have questions about insuring an employee’s work abroad, contact us by sending a secure message through the employe’s online service.

Contact us

More information on insuring work abroad: 

More information on the topic can be found on, for example, the websites of the Finnish Centre for Pensions, Kela and the Earnings-Related Pension Acts Service.

Read more about insuring work abroad (etk.fi) › 
Read more about social security abroad and take a look at Kela’s quick guide for employees going to work abroad (kela.fi) >