TyEL contributions and payments

In 2022 the basic TyEL contribution is 25.85% of the employees' wages.

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

• 17–52 years of age: 7.15% of wages and salary
• 53–62 years of age: 8.65% of wages and salary
• 63–69 years of age: 7.15% of wages and salary

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.

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

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

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

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 (8%). 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, if the invoice amount is more than EUR 400.

Ask for an extended term of payment in Varma Online Service

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 efficient operations. Varma is a solvent and by far the most efficient pension insurance company. Varma’s client bonuses are therefore one of the best 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

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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