Which earnings are subject to TyEL insurance?
As an employer you pay the TyEL contribution on salaries and wages. These so-called TyEL earnings are the compensation you pay for the work performed by your employees. The TyEL earnings include, among other things, monetary wages and fringe benefits. TyEL earnings are usually the same as the pay subject to withholding tax.
TyEL-earnings
In the examples and the pdf table below, you can check whether the salary or wages, fee or other compensation you have paid is considered TyEL earnings or not.
When reporting wages to the Incomes Register, you also need to know the income type. The income type indicates what kind of income is in question. The Incomes Register’s income types correspond to the most common pay types used by payroll administrations. See here the Incomes Register’s income types. Find out also how earnings are reported to the Incomes Register.
TyEL earnings include, for example
- monetary wages
- overtime compensation
- Sunday work or other compensation
- holiday pay and compensation
- bonuses, i.e. performance bonuses
- fringe benefits
- pay during sick leave
- compensation for acting in a position of trust and a meeting fee, if the person is in an employment relationship.
- dividends based on work effort.
- other regular compensation (total amount of working time and exceptional situation compensations paid regularly and included in the earnings from regular working time).
- compensation for unused compensatory leave (compensation used in certain sectors, paid at the end of employment for unused days off).
- share of the bicycle benefit deemed to be wages
- conditional stock options and grants.
The following, for example, are not TyEL earnings:
- tax-exempt travel allowances
- tax-exempt daily allowances
- work equipment compensations
- severance pay and compensations
- options and dividends
| Type of compensation | TyEL? |
| Monthly, hourly, contract or performance-based pay | Yes |
| Wages below the withholding tax limit (e.g. student) | Yes |
| Notice-period pay for a statutory period of notice | Yes |
| Notice-period pay paid in the form of compensation for damages for a period longer than the statutory period of notice (severance pay, "golden handshake") |
No |
| Compensation for notice during a lay-off | No |
| Restriction of competition compensation | No |
| Practical training, apprenticeship, job trial or training agreement, if the employee is in an employment relationship | Yes |
| Full salary of an employee hired with the help of an employment subsidy (employment subsidy, combined subsidy) |
Yes |
| Full salary of an employee hired with the help of an employment subsidy (employment subsidy, combined subsidy) |
No |
| Insured earnings for expatriate work | Yes |
| Salaries controlled in bankruptcy that fell due before the bankruptcy | Yes |
| Type of compensation | TyEL? |
|---|---|
| Annual holiday pay, annual holiday compensation, end-of-holiday pay, increase of holiday pay | Yes |
| Holiday compensation at the end of an employment relationship | Yes |
| Type of compensation | TyEL? |
|---|---|
| Wages paid by the employer during sick leave or partial sick leave | Yes |
| Wages paid by the employer during sick leave due to an accident | Yes |
| Supplementary daily allowance from a sickness fund | No |
| Daily allowance paid by Kela | No |
| Daily allowance from workers’ compensation insurance | No |
| Paid maternity leave | Yes |
| Other paid leave | Yes |
| Unpaid leave | No |
| Type of compensation | TyEL? |
|---|---|
| Compensation for expenses incurred for the performance of work per the a mounts specified in the tax administration’s guidelines (e.g. daily allowance, compensation for equipment, kilometre, meal, accommodation expenses, other travel expenses) |
No |
| Taxable daily allowance | Yes |
| Taxable daily allowance, which is higher than the tax administration’s guidelines, paid on the basis of a collective agreement |
No |
| Employer-subsdized commuter ticket, tax-free share | No |
| Employer-subsidized commuter ticket, taxable share | Yes |
| Type of compensation | TyEL? |
|---|---|
| Performance-based bonus, bonus, production bonus or increment | Yes |
| Bonus paid into a personnel fund or bonus withdrawn from a fund | No |
| Share reward, when the value of the benefit depends on the development of the share value and there is a period of at least one year between the promise of the reward and the receipt of the benefit |
No |
| Compensation granted to pay the tax caused by the share reward | No |
| Stock option, dividend distribution, profit share | No |
| Bonuses, in employment relationship | |
| Meeting or lecturing fee | Yes |
| Initiative, recruitment or referral bonus | Yes |
| Writing or thesis bonus | Yes |
| Bonuses, not in employment relationship | |
| Meeting or lecturing fee | No |
| Initiative bonus | No |
| Writing or thesis bonus | No |
| Remuneration for a shop steward or other position of trust (in an employment relationship or voluntarily paid to the insured) |
Yes |
| Remuneration for a position of trust (without an employment relationship and not voluntarily insured) |
No |
| Type of compensation | TyEL? |
|---|---|
| For fringe benefits (e.g. meal, car, housing and phone benefits), the TyEL earnings are the difference between the benefit and the amount deducted from it |
Yes |
| Voluntary pension insurance and endowment insurance (The share subject to withholding tax of the contributions for voluntary pension insurance and endowment insurance taken out by the employer for the employee.) |
Yes |
| Employee benefits when not compensation for work *Exercise and cultural services vouchers |
No |
| Type of compensation | TyEL? |
|---|---|
| Increment for inconvenient working hours/conditions and for evening, night or weekend work |
Yes |
| Sunday work or overtime increment | Yes |
| Seniority or years-of-service increment | Yes |
| Weekly rest period compensation | Yes |
| Compensation for call-out work, emergency work, overtime work or work during a shut-down |
Yes |
| Working hours equalisation increments | Yes |
| On-call, working-time reduction leave and midweek holiday compensation | Yes |
| Gift - additional wage item, e.g. Christmas bonus, 13th-month pay, bonus or gift for years of service |
Yes |
| Gift - customary item or monetary gift given to the employee on anniversary or for some other reason |
No |
| Commission | Yes |
| Type of compensation | TyEL? |
|---|---|
| Pay for waiting period if the payment of a receivable is delayed at the end of the employment relationship |
No |
| Remuneration for employee invention | No |
| Royalties, compensation for use | No |
| Type of compensation | TyEL? |
|---|---|
| Service charges or tips from customers | Yes |
| Athlete’s wages or bonus | No |
| Compensation for work for persons included in the prepayment register | No |
| Compensation for work for persons not included in the prepayment register | No |
| Compensation paid to a caretaker in accordance with the Disability Services Act | No |