Employees’ contributions and insurance

Employers’ contributions are mandatory costs employers must pay in addition to salary. The size of an insurance premium or other payment is affected by your employee’s age, employment duration and salary. Read more about employers’ contributions and their terms and conditions.

As an employer, you pay insurance premiums on the basis of salary both for time worked and time off, such as annual leave and days off. You must be able to consider indirect employment costs when calculating your business’s costs and budget.

As an employer, you are obliged to pay the following as ancillary costs in addition to salary:

  • Occupational pension contribution
  • Health insurance premium
  • Accident insurance premium
  • Unemployment insurance premiums
  • Group life insurance premium

TyEL employment pension insurance


  • the employee is aged 17–67. You must start insuring the employee from the start of the month following his or her 17th birthday. Your obligation to insure the employee ends at the end of the month in which he or she turns 68.
  • the employee earns at least €62.88 a month (as of 2022). The earnings can come from several employment relationships with the same employer during a single month. If your employee earns less than that, you the employer can choose voluntarily to take out TyEL insurance.

  • As a “contract employer”, one who holds a TyEL pension insurance policy, you may get a client refund and a discount on expense loading. In addition, if your payroll as an employer in 2020 was at least €2,169,000, the size of your insurance premium is affected by your disability pension contribution and a possible discount on the contribution loss portion.

  • 7.15% (17–52-year-olds)
  • 8.65% (53–62-year-olds)
  • 7.15% (63–67-year-olds)
  • As an employer, you withhold the employee’s share according to these percentages when paying salary.

When you pay salaries and file information about them during the calendar month to the Incomes Register, you will get an invoice for paying the related occupational pension contributions. The payroll information you file with the Incomes Register is the basis for the invoice. Users of some services do not receive a separate bill. Instead, they log on to the service they use to find payment details.

As an employer, you must notify the pension provider of your employees’ start and end dates without delay. This is to ensure they have pension security.

You can get more information about filing from your own insurer.

Read more about occupational pension insurance:

Health insurance premium


As an employer, you pay health insurance premium to the Tax Administration along with your other self-assessed taxes. In 2022, the premium is 1.34% (if the employee is aged 16–67).

As an employer, you must pay the health insurance premium to the Tax Administration no later than the 12th day of the month following salary payment.

File the information about paid salaries and employer’s contributions to the Incomes Register. The deadline for filing salary information with the Incomes Register is, as a rule, five days after the salary payment day. Use the separate employer’s form to report your health insurance premium to the Incomes Register. If you are registered with the Tax Administration’s employer register as a regular employer, report your health insurance premium monthly, no later than the fifth day of the calendar month following the salary payment. If you are a casual employer, you should report the total amount of health insurance premiums you paid using a separate employer’s form, but only for the months you paid salary and compensation of costs. If the deadline for filing is a Saturday, Sunday or public holiday, you can file on the next working day.

The percentages are applied to salaries paid in 2022. The period for which the salary is paid is irrelevant.

Accident insurance


As an employer, you are obliged to take out accident insurance for your employees in case of work accidents and occupational illnesses. If you pay your employees no more than €1,300 in a calendar year as salary, you as an employer are not obliged to pay accident insurance premiums.

Lisätietoa tapaturmavakuutuksesta löydät Fennian verkkosivuilta

You must insure all salaried employees, regardless of how much you pay them or their age. How long they have worked for you is also irrelevant.

Business owners with YEL pension insurance are not required by law to take out accident insurance for themselves, but they can take out a voluntary insurance policy with similar content for themselves.

Statutory accident insurance is also valid when employees work remotely.

Employers may freely choose which insurer to use. The level of accident insurance premium varies depending on the danger of the work and the sector. The premium in 2022 is 0.7% on average.

 

Statutory accident insurance covers

  • accidents which occur at work, in the workplace or on the way to or from work
  • pain caused by work movements and other injuries considered work accidents
  • occupational illnesses caused by work

Unemployment insurance premiums


As of 2022, employees have to pay 1.5% of their salary as an unemployment insurance premium.

An employer’s unemployment insurance premium is graded in accordance with the salary paid by the employer. In 2022, it is 0.5% of the salary until €2,169,000 and 1.9% of salary after that.

As of 2022, the unemployment insurance premium paid by a part-owner employed in the business is 0.74% of salary, and the unemployment insurance premium paid by the employer for a part-owner employed in the business 0.65% of salary.

Unemployment insurance contribution is paid for employees aged 17–64. The lower age limit for unemployment insurance will rise to 18 years on 1 August 2022.

Group life insurance


As an employer, the generally binding collective bargaining agreement you use may contain a clause which obliges you to take out group life insurance for your employees. The group life insurance premium varies by insurer, and it is charged along with the accident insurance premium.

Further information about group life insurance for employees:

Employers’ contributions 2022