When do I need TyEL insurance?
An employer needs TyEL insurance when
- they have at least one employee working under an employment contract,
- the employee is at least 17 years old, and
- the monthly salary paid for the work is at least EUR 65,26 in 2023.
You also need TyEL insurance if you are a private person who employs, for example, a childminder, renovator, cleaner or gardener.
The lower age limit for TyEL insurance is 17 years. The TyEL insurance upper age limit depends on the employee’s year of birth:
- 68 years for those born in 1957 or earlier,
- 69 years for those born in 1958–1961, and
- 70 years for those born in 1962 or later
Impact of company form on pension insurance: YEL or TyEL?
Different rules apply to the different company forms as to which pension law a self-employed person or a self-employed person's family member is insured under. Sometimes, for example, a family member working for the company needs his or her own YEL insurance. This depends on the company form and the family member's work and position in the company.
If you or your company do not have permanent employees and you pay less than EUR 9,348 in wages over a period of six months (in 2023), you qualify as a temporary employer. In this case, you do not have to sign a TyEL insurance contract with an earnings-related pension company. You must, however, report the payroll information to the Incomes Register and pay the TyEL insurance contributions normally.