When do you need TyEL insurance?

When you, as an employer, hire an employee into a contractual employment relationship, you assume the obligation to insure that individual under a statutory TyEL insurance policy. TyEL insurance guarantees pension security for each employee.

Take the TyEL insurance no later than the end of the month following the employee's first salary payment month.

An employer can be a company, an organisation or a household.

An employee must be insured under TyEL insurance if the employee

  • is employed within a contractual employment relationship,
  • is between the ages of 17–68,
  • earns at least 59.36 euro per month (in 2019),
  • is working while receiving pension.

An employee must be insured from the start of the month following the date on which he/she turns 17. The obligation to insure continues to the end of the month in which the employee turns 68. The obligation to insure also applies to any work done alongside pension.

Are you a contract employer or an occasional employer?

You can ensure the pension security for your employee(s) either by taking the TyEL insurance for contract employers or by making notifications as an occasional employer.

Take the TyEL insurance for contract employers if

  • the employment relationship of at least one employee is permanent,
  • you pay salaries/wages regularly, or
  • the estimated total 6-month payroll for your employees is a minimum of 8,502 euro in 2019.

A household can also be a contract employer. A contract employer shall also include any temporary employments in the TyEL insurance policy.

You are an occasional employer if

  • you only hire an employee temporarily or occasionally,
  • the total 6-month payroll for your employees is less than 8,502 euro in 2019, and
  • you or your company do not have a valid TyEL insurance policy.

An occasional employer can be a company, an organisation or a household. 

Please note that you cannot simultaneously be both a contract employer and an occasional employer. If you are a contract employer, you must also include any temporary employees in the TyEL insurance policy. Occasional employers must report any paid wages immediately upon payment.

Positions of trust can be insured under voluntary TyEL insurance

Positions of trust are not statutorily required to be insured under TyEL, but the employer can voluntarily take a TyEL policy for those in positions of trust.

Positions of trust include, for example

  • positions of trust in labour market organisations and ideological organisations
  • memberships on supervisory boards, consultative committees and executive boards.

Working abroad

Work assignment from Finland to another country

Generally an employee is insured within the country in which he or she works. One exception to this rule is a situation in which a Finnish employer temporarily assigns an employee to work in another country. In this case, an A1 certificate for a posted employee may be requested from the Finnish Centre for Pensions. This certificate will ensure that the employee will remain insured in Finland while working abroad. The certificate can be granted on the basis of the EU social security regulations or social security agreements. If the country to which the employee is posted is a non-agreement country, the employee will often need to be covered by insurance in both countries.

If you post an employee from Finland to work abroad for a fixed period, remember to apply for the A1 certificate for posted employees using the online form of the Finnish Centre for Pensions.

If the foreign assignment will last more than six months, agree with the employee in writing on the amount of pensionable earnings prior to the beginning of the posted period. The pensionable earnings must correspond to the salary that would be paid for similar work within Finland. All statutory payments and benefits will be based on the agreed pensionable earnings during the assignment. Therefore, you simply need to report the pensionable earnings to Elo instead of the actual earnings.

Read more about insuring employees who are posted abroad from Finland on the website of the Finnish Centre for Pensions.

Foreign employees in Finland

If an employee comes from abroad to work in Finland, that individual shall primarily be insured in Finland. It is the foreign employer’s obligation to take TyEL insurance from Finland for the employee in question. One exception to this rule concerns posted employees from another country. A posted employee has received a certificate from the departure country that ensures that the individual is insured in that country even though he or she is working for a set period in Finland. The certificate is available to employees posted to Finland from an EU/EEA country, Switzerland or other country with which Finland has a social security agreement. Insurance coverage for those working in multiple countries simultaneously must also be resolved and they may, depending on the situation, also be eligible for an A1 certificate for posted employees.

Read more about insuring foreign employees in Finland from the website of the Finnish Centre for Pensions.

Insuring work done abroad:

In terms of employees who move to different countries for work, it is essential to determine in which country they are being insured. The determination of insurance for work abroad is primarily dependent on the countries between which the employee is moving as the result of a work assignment abroad.

The insuring of employees that move between Finland and other EU/EEA countries and Switzerland is governed by EU social security regulations. Additionally, Finland has entered into social security agreements with several other countries. The purpose of the regulations and agreements is to ensure that the insurance coverage of employees is not discontinued, but rather that they are insured by only one country at a time.

Insuring work done abroad

In terms of employees who move to different countries for work, it is essential to determine in which country they are being insured. The determination of insurance for work abroad is primarily dependent on the countries between which the employee is moving as the result of a work assignment abroad.

The insuring of employees that move between Finland and other EU/EEA countries and Switzerland is governed by EU social security regulations. Additionally, Finland has entered into social security agreements with several other countries. The purpose of the regulations and agreements is to ensure that the insurance coverage of employees is not discontinued, but rather that they are insured by only one country at a time.

Other statutory insurances for employers

In addition to TyEL insurance, employers need the following statutory insurance policies to cover their employees:

  • occupational accident and disease insurance
  • group life insurance
  • unemployment insurance

Occupational accident and disease insurance, and group life insurance are available through our insurance partners:

Unemployment insurance is available from the Unemployment Insurance Fund >

As an employer, you will be responsible for paying your employees’ health insurance payments to the tax authorities.

Elo is here to help and support you

Elo's Online Service is always available for you to use whenever it's most convenient for you. For TyEL and YEL insurance matters, please call us at +358 (0)20 694 730 (weekdays 8 a.m.-4:30 p.m)