when am i a Temporary employer?

You are a temporary employer when

  • you pay wages to an employee under an employment contract,
  • you do not have permanent employees,
  • the wages you pay to employees under an employment contract over six months total less than EUR 8,502 (in 2019). If the amount is exceeded or if you have employees under a permanent employment contract, you must fill in a TyEL insurance application. Report the wages paid to your employees to the Incomes Register. You will need an insurance number, i.e. a pension policy number.

The TyEL contribution by temporary employers is 25.2 per cent of the payroll (in 2019, the percentage varies annually). You and your employee pay the contribution together. The employee’s share will be collected from his/her pay and the whole TyEL contribution will be remitted to Ilmarinen.

A convenient way to arrange pension cover is to use, for example, the PikaPalkka®SuoraTyo.fi or Palkka.fi services for the calculation of wages. These services automatically send the earnings payment data to the Incomes Register. The Palkka.fi service immediately forms the TyEL contribution, which you can pay in your online bank. You can also submit your earnings payment data directly on the Incomes Register’s electronic service.

If the person you hire is an entrepreneur or works in a company, they take care of earnings-related pension contributions. Remember to check this when you hire an employee!

Report wages and salaries

Other insurance

When you pay more than EUR 1,300 in wages or salaries during a calendar year (in 2019), you must take out workers’ compensation insurance and unemployment insurance. You can take out workers’ compensation insurance with any non-life insurance company. Unemployment insurance can only be taken out with the Unemployment Insurance Fund (TVR, the name will change to Employment Fund as of 1 Jan 2019).

You do not need to take out group life insurance separately; you will get it automatically from the non-life insurance company when you take out workers’ compensation insurance.

Employee’s share of contribution, % of pay in 2019

  • Employee 17–52 years old 6.75%
  • Employee 53–62 years old 8.25%
  • Employee that has turned 63 6.75%

If you pay your employee less than the minimum limit specified by the tax authority, your responsibilities end here. Otherwise you must withhold taxes from the wages and pay the employer’s social security contribution, i.e. the health insurance contribution. If the pay falls below the minimum limit you do not need to worry about either of these.

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) ›