Are you a contract or temporary employer?
You are automatically a contract employer when
- even one employee's employment is permanent,
- you pay salaries regularly, or
- the estimated total payroll sum for employees over six months (6 months) is at least 10 272 euros in 2026 (10 038 € year 2025).
As a contract employer, you must make a TyEL insurance contract. There are many benefits to being a contract employer.
You can be a temporary employer when
• you hire an employee on a one-time or occasional basis,
• the total payroll sum for temporary employees over six months (6 months) is less than 10 272 euros in 2026 (10 038 € year 2025), and
• neither you nor your company has an active TyEL contract insurance.
When the above conditions are met, making an insurance contract is not mandatory. If you do not make a contract, insurance is handled without a contract insurance number while you report the employee's earnings to the Incomes Register. In the Incomes Register, you select Elo as the pension insurer.
You can always choose to act as a contract employer, and there are many benefits to doing so.
Price
The TyEL payment for contract employers is customer-specific and consists of several parts.
The majority of it is the TyEL basic payment, which is the same across all pension insurance companies at 24,85 % in 2026 (25,28 % year 2025). Additionally, a small part of the payment is the basic expense loading fee, which is based on the pension companies' own calculation criteria. Elements that reduce Elo's basic expense loading fee affecting the TyEL payment include constancy and large-scale company discount, as well as the client bonus that lowers the final TyEL payment. This bonus is given as a lump sum and credited to customers' invoices in the spring if the related conditions are met.
For large-scale employers, the payment category also affects the payment.
Read more about the formation of the TyEL payment.
The TyEL payment for temporary employers in 2026 is 25,85 % (26,28 % year 2025)
Please note that if you choose to act as a temporary employer, the TyEL insurance payment is higher than that for contract employers, and you are not entitled to other benefits of contract insurance.
The timing of taking out insurance
However, the insurance must be in effect no later than at the time of the first salary payment, at which point the employee's earnings must be reported to the income register, generally within 5 days of the salary payment.
The employer insures all employees under the same TyEL insurance regardless of the duration and nature of the employment relationship.
As a temporary employer, you can handle TyEL insurance at the same time as reporting employees' earnings to the Incomes register. No insurance application is made, and no continuous insurance agreement is entered into.
However, if the employer already has an existing contract insurance, all employees must be insured under the same TyEL insurance regardless of the duration and nature of the employment relationship.
As a contract employer, you benefit more
You can always choose to act as a contract employer, and there are many advantages to it. Being a contract employer is more cost-effective for the employer as the TyEL contribution rate is lower. You are also entitled to customer bonuses and loyalty discounts. Additionally, you gain access to Elo's online services and can utilize work ability management services.