TyEL contributions and payments

TyEL contributions are based on paid wages. We get earnings data from the Incomes Register and calculate the TyEL contributions accordingly. Varma offers competitive client bonuses because we are a solvent pension company. The client bonus reduces the TyEL contribution.

TyEL contribution 2023

In 2023, the basic TyEL contribution is 25.30% of the employees' wages and an administrative cost component, specific to each earnings-related pension insurance company, is added to it.

Part of the TyEL contribution is paid by the employee. Withhold the employee’s contribution from their wages. The employee’s contribution is:

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

The employee must pay an increased contribution from the beginning of the calendar month following the year in which the employee turns 53 to the end of the calendar month in which he or she turns 63.

You can find your company's TyEL contribution rate in Varma Online Service: Insurance policies > Estimates and reports > Make a new estimate.

Take a look at the table that shows the insurance contribution percentages and limits

Changes to determination of TyEL contributions as of 1 January 2023

New pension company-specific differences will be introduced for TyEL contributions from the beginning of 2023. Read more on the subject in our news:

Changes to how TyEL contributions are determined – Varma’s efficiency and solvency will directly benefit customers

Payment methods

Our TyEL insurance contribution payment methods are the immediate invoice and the consolidated invoice. We recommend selecting the payment method according to the number of times wages are paid within a one-month period.

The immediate invoice is a good option if wages are paid once a month. We will send the invoice right away when we receive the earnings data from the Incomes Register. The due date of the invoice is 21 days from the date that the invoice was sent.

The consolidated invoice is the most sensible invoicing method if wages are paid several times during one month. We send the invoice once a month for earnings data reported during a one-month period. For example, for wages paid during January, we send an invoice in early February. The due date of the invoice is 21 days from the date that the invoice was sent.

You can check your current payment method in Varma Online Service. You can also change the payment method there.

Log in to Varma Online Service

Extended term of payment for TyEL invoice

We support you in navigating the twists and turns of your life and business. If you require flexible payment arrangements, you can ask for an extended term of payment for your invoice in Varma Online Service. The term of payment is subject to interest for late payment (10.5% in 2023). Varma’s own collection advisors will work with you to find the best solution for your payment situation. Don’t hesitate to contact us! We charge a EUR 40 collection fee for sending a payment reminder.

Ask for an extended term of payment in Varma Online Service

The client bonus reduces the TyEL contribution

We can give a discount on TyEL insurance contributions in the form of client bonuses. Every single one of our TyEL customers receives client bonuses due to our strong solvency. Varma is the most solvent pension insurance company and therefore our client bonuses are among the best ones in the sector. Varma provides affordable TyEL insurance.

In 2022, we paid the client bonuses for TyEL insurance contributions on 7 March 2022. Client bonuses are usually applied to your future TyEL contributions. Check Varma Online Service to see your client bonus amount and how it has been used.

Read more about client bonuses

Check your client bonuses in Varma Online Service

Take advantage of the payment tools in the Varma Online Service

Varma Online Service, our clear and easy-to-use online service, is always open. Using the tools in our online service, you can estimate your future TyEL contributions and stay up to date on paid contributions to support your accounting.

In the online service's Estimates and reports section you can estimate the future TyEL contribution and gather information for financial statements, for instance. In the Data for financial statement tab you can easily retrieve information on TyEL contributions and invoicing for accounting. You can use the service for monthly reconciliations or interim accounts, for example. In the service, you can see the TyEL contribution information for the previous and current year. You can also see the total of invoiced TyEL contributions and payments made.

In the Data by year tab you can follow the realisation of your budget and make an end-of-year estimate for your financial statements. You can see your TyEL payroll and contributions for the current year. You can make an estimate of the TyEL contributions and contribution percentages for the entire year. The service also shows your client bonuses.

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Five reasons to choose Varma's TyEL insurance

  1. Varma offers you affordable TyEL insurance as we are the most solvent earnings-related pension insurance company. This is why we are able to offer excellent discounts on TyEL contributions.
  2. As Varma's customer, you will have access to the user-friendly and easy-to-use Varma Online Service. In one service, you can easily take care of matters related to TyEL insurance and payments as well as work ability management. Varma Online Service is always open so you can take care of your insurance-related matters even on your smartphone whenever it suits you. If you also have YEL insurance from Varma, you can easily take care of your YEL insurance matters in the same service.
  3. Varma is a partner of the future makers. Our experts, awarded by our customers, will support you through the changing and unexpected twists and turns of your business. Our friendly customer service can be easily reached by phone, chat, and Varma Online Service.
  4. Varma has its own knowledgeable collection advisors who constantly receive positive feedback from our customers. If you ever find yourself in need of flexible payment arrangements, don't hesitate to get in touch. Together we will find a solution to your situation!
  5. In Varma, your earnings-related pension contributions are under excellent management as our investment activities are profitable and secure. Varma is a pioneer in sustainability: you can rest assured that while we look after your and your employees' pension cover, we also take the environment, our employees, and future generations into consideration.

Help with using our services

Take care of your TyEL matters online

In our online service, you can, for instance

  • view your TyEL insurance invoices and invoice specifications
  • view earnings by employee
  • send us messages and attachments through a secure connection
  • calculate estimates of TyEL contributions
Log in to Varma Online Service