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TyEL contributions and certificates

As an employer, you take care of employees’ pension security by paying TyEL contributions to the employment pension company. The TyEL contribution is determined in the same way in all pension insurance companies according to the criteria ratified by the Ministry of Social Affairs and Health and is a specific percentage of the employee’s gross earnings. 

TyEL contribution for 2022

The basic TyEL contribution for 2022 is 25.85% of the TyEL payroll. The TyEL contribution is calculated from the payroll data reported to the Incomes Register. The employment pension company invoices the whole contribution from the employer, who in turn will deduct the employee share of the contribution from each employee’s wages or salary.

In 2022, the employee’s share of the contribution is:

7.15% for those under 53 years of age,
8.65% for those aged 53–62 years and
7.15% for those who have turned 63.

As a contract employer, your TyEL contribution is reduced by Elo’s client bonus, which is calculated once a year. If your company’s payroll sum was over EUR 2,169,000 in 2020, you are considered a large-scale employer.

The premium of an occasional employer always equals the basic TyEL contribution, i.e. 25.85% in 2022.

Read more about occasional employers > 
Read more about the social security contributions for 2022 > 

Due date of the TyEL contribution and insurance contribution interest

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When you issue a payroll report to the Incomes Register in time, the due date of the TyEL contribution will be the last day of the month following the salary payment month. Insurance contribution interest is paid for payments falling due after that. The insurance contribution interest is 2.0% as of 1 January 2022.

Do you need a payment extension for your invoice?

It is possible to get a one-month payment extension for your TyEL invoice, which is subject to the insurance contribution interest rate, if you have issued a payroll report to the Incomes Register within normal schedule. A penal interest is charged for longer payment extensions. If you need a payment extension for your invoice, you can apply for it easily through Elo’s online service or by calling our customer service.

TyEL contribution payment methods

You can pay TyEL contributions in two ways:

1. Monthly invoice
You will receive an invoice once a month for all reports of the same salary payment month. Even if you paid salaries three times a month, for example, the information of all three salary payments is compiled into a single invoice.

2. Invoice for each payroll report separately
You will receive an invoice for each payroll salary report separately. This means that you will receive as many invoices as you have salary payment reports.

The default payment method is automatically an invoice once a month, and you can change the payment method through Elo’s online service.

Do you need a TyEL certificate?

The TyEL certficate shows that you have a valid insurance policy and that your contributions have been paid. You can print out a certificate from Elo’s Online Service. A certificate may be requested, for example, as an attachment to an offer to show that the employer has insured its employees under TyEL insurance.

Take electronic invoices into use

We recommend that you take electronic invoices into use so that you can pay insurance contributions quickly and easily.

You can receive invoices electronically to:

• your company’s invoice handling system or web bank
• the e-mail address you have given or to
• Posti’s OmaPosti service.
In addition, private customers can receive an electronic invoice in their web bank.

Read more detailed instructions about taking electronic invoices into use >

Payment methods in palkka.fi service and invoicing

Palkka.fi is a free payroll accounting system for small-scale employers, launched by the Finnish Tax Administration. When you have the service in use, palkka.fi sends salary information directly to the Incomes Register and you do not need to issue a separate report to the Incomes Register.

Deviating payment and invoicing methods

Corporate employers

As a rule, the invoicing details of TyEL contributions are indicated in the Palkka.fi service. In such a case, Elo does not send an invoice but the invoice details are shown on the Payments tab of the service. Corporate employers can also choose in the service the invoicing of the TyEL contribution from one’s own employment pension company. In such a case, you will receive an invoice from Elo in accordance with the payment and invoicing methods valid for your insurance. You can choose the payment method at the Employer information > Insurance information section of the Palkka.fi service.

Household employers

The invoicing details of TyEL contributions are always shown on the Payments tab of the Palkka.fi service and it is not possible to choose an invoice from one’s own employment pension company as the payment method.

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