Taking out a new TyEL insurance policy or transferring an existing policy is easy to do online. You need TyEL insurance when you hire an employee as a self-employed person or private individual. TyEL insurance is required for employees aged 17 or over who are employed and are paid at least EUR 68.57 per month (in 2024).
The basic TyEL contribution is 25.12% of payroll (2024) and an administrative cost component, specific to each earnings-related pension insurance company, is added to it. The employer pays the full contribution to the earnings-related pension insurance company of its choice. The employee participates in the pension insurance contribution with his or her own share, which is withheld by the employer when the salary is paid.
The final TyEL contribution is based on the salaries paid by the employer and whether the employer is a temporary or contract employer. The contract employer has an insurance contract with Varma and receives a discount on the TyEL contributions in the form of client bonuses. The longer the period of insurance with Varma and the more salaries paid the more client bonuses are granted.
If you have a valid TyEL insurance with another earnings-related pension company and want to transfer it to Varma, fill in the application and we'll take care of the termination for you.
To complete the YEL insurance application, you will need a few minutes of your time, your online banking codes or a Mobile ID, your company's business ID, and an estimate of the salaries to be paid to your employees. Once you've submitted your application, you'll have access to our easy-to-use Varma Online Service, where you can take care of your insurance matters when it's convenient for you.
This is how to take out TyEL insurance
1. Choose an insurance policy and identify yourself
Click 'Start here' to start filling in the TyEL insurance application. Select TyEL insurance and indicate whether you are taking out insurance for employees of a company or association or as an individual. Log in with your online banking codes or Mobile ID.
2. Enter the business ID
After identification, the insurance application will ask you to provide your company ID. If you don't remember your business ID, you can look it up in the free YTJ company search. If you are hiring an employee as a private individual and you chose the private individual path in the previous section, you will not be asked for the business ID.
3. Fill in the start date of TyEL insurance
Fill in the start date of TyEL insurance on the insurance form. You need TyEL insurance from the day you first pay a salary to an employee. If you have TyEL insurance with another earnings-related pension company, select the transfer date on the form. We will terminate your previous insurance policy on your behalf.
4. Give an estimate of salaries for the next 12 months
Give an estimate of the combined salaries of all your employees for the coming 12 months. We will receive the final payroll for the calculation of TyEL contributions and pensions directly from the Incomes Register. Report the salaries paid to the Incomes Register within five days of payment.
7. Fill in the contact details
Fill in the contact details on the insurance application so that we can reach the right contact person for insurance matters. You can update the contact details whenever necessary in Varma Online Service. If you wish, you can also authorise our partners Nordea, If and Mandatum Life to contact your company.
8. Choose the delivery method of the invoice
The invoice is sent automatically once a month. You can later edit the invoicing method and invoicing periods in Varma Online Service.
It's that simple – take out TyEL insurance.