What earnings are TyEL contributions paid on?

TyEL contributions are paid on the TyEL payroll. Based on the information below, you can easily check whether wages, bonuses or compensation are considered part of the TyEL payroll.

The TyEL payroll is the compensation paid for work performed. It is often the same as an employee’s gross earnings subject to tax withholding. The TyEL payroll includes wages and salaries, as well as the fringe benefits. The employee’s share of the pension contribution is also deducted from the TyEL earnings.​

Check the tables below to see if a certain type of employee compensation is considered part of the TyEL payroll. If you cannot find the type of earnings you are looking for, please contact our customer service.

TyEL earnings are:

  • Wages or salaries
  • overtime compensation
  • compensation for work, e.g., on Sunday
  • holiday pay
  • end-of-holiday pay
  • holiday compensation at the end of the employment relationship
  • fringe benefits
  • sick pay due to illness or an accident

TyEL contributions are not paid on:

  • Tax-free travel allowances
  • work equipment compensation
  • tax-free daily allowances

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

Practical training, job trial with labour market subsidy, if not in an employment relationship

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 amounts 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-subsidized 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