Do you need to take out TyEL insurance?
Your employee is insured under TyEL, if the work is performed under an employment contract, the employee is between 17 and 67 years old and the monthly salary paid for the work is at least EUR 59.36.
Quick guide to employees' TyEL pension insurance
TyEL insurance provides cover for your employees
With statutory TyEL insurance you ensure pension cover for your employees. As an employer, it is your responsibility to take out the insurance and to report your employees' earnings.
Earnings to be reported
The earnings that form the basis for pension always consist of compensation for work performed. Usually, the earnings that accrue pension for your employee are the same as the earnings subject to withholding tax.
How much does TyEL insurance cost?
The basic TyEL contribution is 25.20 % of the employees’ wages and salary. Employees under 53 years or over 62 years of age contribute 6.75 % of their pay. For employees aged 53-62 years, the share is 8.25 %. As an employer, you withhold the employee’s pension contribution from the employee’s salary and pay the entire earnings-related pension contribution to the pension insurance company.
Salary notification
As an employer, you report your employees’ earnings from 1.1.2019 onwards to the Incomes Register only each time wages are paid. Varma will receive earnings data for the calculations of insurance contributions and pensions directly from the Incomes Register.
See what pension insurance you need
Based on the information you have provided you can take out pension insurance for your employees in the Pesti service. It is designed for employers who hire employees incidentally and whose total payroll for a consecutive six-month period is less than EUR 8,502. Based on the information you have provided you do not seem to require statutory pension insurance. Contact us to make sure. Telephone: +358 010 192 102 Based on the information you have provided you require TyEL insurance for your employees. Based on the information you have provided you require TyEL insurance for yourself and your employees. One TYEL application is enough. Based on the information you have provided you require YEL insurance as an entrepreneur and TyEL insurance for your employees. Based on the information you have provided you require TyEL insurance as an entrepreneur. Based on the information you have provided you require YEL insurance as an entrepreneur.
Do you need information about insurance for owners and family members?
Call us 010 192 102
Hiring the first employee
The pension cover of your employee is in your hands. Take out TyEL insurance for him/her with us if
- the work is performed under an employment contract
- the employee is between 17 and 67 years of age
- the pay for the work equals EUR 59.36/month or more
As of 1 January 2019 you will be report the payroll information to the Incomes Register. To make it easier to make notifications, you can use the free-of-charge Palkka.fi service (in Finnish and Swedish) or a commercial payroll service such as Palkkaus.fi (in Finnish).
- If you use the Palkka.fi service, choose "Varma" as insurance company on the dropdown-list on the online form. The system will generate Varma's company ID and pension insurance number.
- If you use the technical interface or the upload service of the Incomes Register, remember to provide Varma's company ID "55" and as pension insurance number "55-3999990D".
Accident insurance
You may also need to take out accident insurance for your employees, ask If for an offer +358 (0) 10 19 15 00.
Work abroad
Work abroad
When an employee is working abroad, you cannot freely decide where and how to arrange insurance.
Social security abroad
Our database offers information on social security in different countries.
Posting an employee abroad
As a general rule, your company’s employees are insured in the country in which they work.
Foreign employee
Work performed in Finland is insured in Finland irrespective of the employer’s or employee’s citizenship.
Foreign employer
For all employees working in Finland, the employer has to arrange earnings-related pension insurance (TyEL).
TyEL insurance for employees when business operations change
Corporate transaction
If you sell your company’s entire business, your company’s TyEL insurance ends. Your employees will be transferred to the insurance policy of the buyer of the business.
If you sell only part of the business and some employees remain with your company, your company’s TyEL insurance will remain valid. The employees who are part of the sold business will be transferred to the buyer’s insurance.
The business transaction might also affect the insurance of the company’s owners. Read about YEL insurance for the self-employed here.
Change in company form
If you have a business name and you change it to a limited liability company, a general partnership or a limited partnership, terminate your old TyEL insurance and take out new TyEL insurance for your employees under the name of the new company.
When you change a limited partnership or general partnership to a limited liability company, the TyEL insurance continues as before.
The change in company form might also affect the insurance of the company’s owners. Read about YEL insurance for the self-employed here.
Merger
When one or more companies merge, it must be determined which of the companies is the acquirer and which are the acquirees. The TyEL insurance policies of the acquirees must be terminated and the employees transferred to the insurance of the acquirer. The acquirer must take out new TyEL insurance if the company previously did not have insurance.
If two or more companies merge to form an entirely new company, the old insurance policies of the acquirees must be terminated and new TyEL insurance must be taken out for the new company.
The pension fund of the acquirees is transferred to the insurance of the acquirer.
The insurance of the companies’ owners might also change as a result of a merger. Read about YEL insurance for the self-employed here.
Demerger
If a limited liability company is demerged into two or more companies, the TyEL insurance of the demerging company must be terminated and new insurance must be taken out for the new companies.
A limited liability company may also demerge only in part. In this case, the TyEL insurance for the remaining portion of the company remains the same and if employees are transferred to the new company, new insurance is taken out for them.
The transfer of the employee pension fund of a demerging company is agreed on separately.
The insurance of the companies’ owners might also change as a result of a demerger. Read about YEL insurance for the self-employed here.