TyEL insurance

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.

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 60,57.

If you don't employ regular staff and salaries are less than 8 676 euros within 6 months, you can act as a temporary employer.

In 2020 the basic TyEL contribution is 25.30% of the employees’ wages and salary.  As an employer, you withhold the employee’s pension contribution from the employee’s salary and pay the entire contribution to Varma.

Client bonuses lower your insurance contributions. Varma pays the best client bonuses.

Report your employees’ earnings to the Incomes Register within five days of wages being paid. Varma will receive earnings data for the calculations of insurance contributions and pensions directly from the Incomes Register.

Usually, the earnings that accrue pension are the same as the earnings subject to withholding tax. The earnings that form the basis for pension always consist of compensation for work performed.

Are you posting an employee abroad? Are you going to hire a foreign worker? Do you need more information about social security in a particular country?

We have put together a comprehensive information package related to international work and pension cover:

• Posting an employee abroad
• Pensionable salary
• Foreign employee or employer
• Insuring temporary agency workers
• Brexit and how it will affect how work abroad is insured

We have compiled instructions on how to deal with TyEL insurance in the following situations:

• Corporate transaction
• Change in company form
• Merger
• Demerger

Please note, that changes in business operations might also affect the insurance of the company’s owners.