When you hire an employee temporarily

Customer service | 010 284 3714

When you hire an employee temporarily

When you hire a temporary employee, for example a cleaner, renovator or forest worker, you are either a temporary employer or a contract employer. Your obligations depend on whether you are considered to be a temporary employer or a contract employer. 

Check below to see in which situations you are considered to be a contract employer or a temporary employer.

Temporary employer – wages less than EUR 8,502 in six months

When you pay your employees a maximum of EUR 8,502 during six months (in 2019), you will only have to pay the TyEL contributions.

Contract employer – wages more than EUR 8,502 in six months

When you pay your employees a minimum of EUR 8,502 during six months (in 2019), you need to take out employee’s pension insurance, i.e. TyEL insurance.

Example: Household as an employer

In Finland, households often employ temporary employees. We are frequently asked for advice with different payments and insurance matters. The first thing to do is to find out if you are subject to the obligations of a temporary employer or a contract employer and take action accordingly.

Changes in our online services

Services for temporary employers have been transferred to the PikaPalkka®, SuoraTyo.fi and Palkka.fi services (in Finnish). Starting on 1 January 2019, contract employers will submit reports directly to the Incomes Register.



Services for temporary employers

The service is suitable for companies, households and accounting firms that employ people on a temporary basis.

PikaPalkka® is a complete service package intended for temporary notifications and payments. The service makes it easier for employers to meet their obligations and automates process steps by sending all necessary notifications directly to the Incomes Register and by automatically deducting, for example, the withholding tax, the TyEL insurance contribution to Ilmarinen and the unemployment insurance contribution from the employee’s pay. Ilmarinen’s customers can use the service free of charge. The service is provided by SuoraTyö Oy.

Learn more about the service (in Finnish) ›

The service is particularly suitable for small companies and self-employed persons, clubs and associations.

Palkka.fi is a free service for payroll accounting. The service sends all necessary notifications directly to the Incomes Register and automatically deducts, for example, the withholding tax, the TyEL insurance contribution to Ilmarinen and the unemployment insurance contribution from the employee’s pay. In order to use the service you must enter the required information concerning you as an employer and your employees before starting payroll accounting. The service is provided by the Tax Administration.

Learn more about the service (in Finnish) ›

The service is suitable for companies that employ people on both a permanent and temporary basis. Examples include sectors using temporary employees, households and accounting firms.

SuoraTyo.fi is a complete service package that makes it easier for users to meet their employer obligations and automates process steps. A fee is charged for the service. Taking care of the statutory employer obligations related to employment relationships and payment of salaries and wages is easy, as the service sends all necessary notifications directly to the Incomes Register and automatically deducts, for example, the withholding tax, the TyEL insurance contribution to Ilmarinen and the unemployment insurance contribution from the employee’s pay. The service is provided by SuoraTyö Oy.

Learn more about the service (in Finnish) ›

Are you considering hiring a new employee?

Our salary calculator helps you to get a sense of the incidental wage costs involved in hiring a new employee or a pay rise. The calculator uses rates for current year. 

Fill in the employee´s data

Age

Breakdown of salary costs

Employer´s contribution

Due gross pay to the employee

Total hourly wage 0,00 ?
Holiday compensation 0,00 ?
Total gross pay0,00

Employer´s costs

Health insurance contribution 0,00 ?
Earnings-related contribution 0,00 ?
Unemployment insurance contribution 0,00 ?
Accident insurance contribution 0,00 ?
Group life insurance 0,00 ?
Total incidental costs0,00

Employee´s contribution

Costs to be withheld from salary

Earnings-related contribution 0,00 ?
Unemployment insurance contribution 0,00 ?
Tax on income 0,00 ?
Amount to be paid to the employee0,00

The employer´s costs vary according to the sector of industry and the company´s size. The default values used in the calculator are averages. Verify the conclusive rates and contributions from the tax authorities, KELA, your insurance company and from the collective agreement of the branch in question.