Employers obliged to take out pension insurance for their employees

Under the Finnish Employees Pensions Act (TyEL), employers are obliged to arrange pension provision for the employees they hire. In practice, this means that the employer must take out TyEL insurance for its employees and pay its share of the contributions. The TyEL insurance policy also protects the employee’s income if they have an accident that leaves them unable to work, for example.

You are obliged to take out TyEL insurance if

  • you conclude an employment contract with an employee, 
  • the employee is aged 18–69 and
  • the employee’s monthly salary is at least 68.57 euros.  

When do you need TyEL insurance?

  • You need to take out TyEL insurance when you conclude an employment contract with your first employee. 
  • As an employer, you have a statutory obligation to take out TyEL insurance for your employees and submit their earnings data to the Tax Administration’s Incomes Register. 
  • You must take out TyEL insurance before you submit your first employee’s earnings data to the Incomes Register. To submit the data, you will need to provide your insurance number. 
  • Please note that you need to submit the earnings data of each employee to the Incomes Register within five days of the salary payment date.  

TyEL payment

  • Insurance premiums are based on the salaries notified for the Incomes Register. In 2024, the average pension insurance contribution is 24.81 % of employee salaries.  
  • Both the employer and the employee participate in the insurance contribution. The employer’s average share is 17.39%, whereas the employee’s share is, depending on the employee’s age, either 7.15% (employees aged less than 53 or over 62) or 8.65% (employees aged 53–62) of their salary. 
  • As an employer, you deduct the employee’s share in connection with the salary payment and pay the entire pension insurance contribution to the pension insurance company. 

Nordea offers TyEL insurance in collaboration with Varma

From Varma you can get both YEL and TyEL insurances

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