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.

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