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

Take out TyEL insurance

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.

Learn about the impact of company form

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.

Read more about being a temporary employer

The TyEL insurance contribution is based on the wages you pay to your employees. In 2023, the basic TyEL contribution is 25.30% of employees' wages and an administrative cost component, specific to each earnings-related pension insurance company, is added to it. You can calculate the amount of your TyEL contribution with our TyEL calculator.

Each employee also participates in the costs of the TyEL insurance. As the employer, you withhold the employee’s contribution from their wages. The employee’s contribution of the TyEL insurance is:

• 7.15% of the wages for those aged 17–52
• 8.65% of the wages for those aged 53–62
• 7.15% of the wages for those who have turned 63

Varma receives the required earnings data from the Incomes Register. We calculate the TyEL insurance contribution based on the earnings data reported to the Incomes Register, based on which we then send an invoice. Read more about wages to be insured under TyEL and how to report them.

View your invoices and wages in Varma Online Service

The invoicing methods for the TyEL insurance contributions are the immediate invoice and the consolidated invoice. We recommend selecting the payment method according to how often you pay wages.

We will send the immediate invoice right away when we receive the earnings data from the Incomes Register. The due date of the invoice is 21 days from the invoicing date. We will send the consolidated invoice once a month for earnings data reported during a one-month period.

Read more about TyEL insurance contributions

We can give a discount on TyEL insurance contributions in the form of client bonuses. We pay out client bonuses annually to our TyEL insurance customers, which reduces their TyEL insurance’s total costs. Varma is the most solvent pension insurance company, which means that we offer excellent client bonuses. You will get an affordable TyEL insurance from Varma.

Read more about client bonuses

We support you in navigating the twists and turns of your life and business, whether they concern a birth in the family, an illness or the need for flexible payment arrangements.

We help you in your busy daily life to take care of your and your employees’ work ability.

We offer our customers the Varma Academy learning environment, which gives you tools for coping at work. Our digital services will help you, for example, to identify the most common work ability risks in your sector.

In addition, our work ability experts are at your disposal.

Read more about our services for work ability management