TyEL calculator

When an entrepreneur or private person hires an employee, they are obligated to arrange pension insurance for the employee by taking out TyEL insurance. TyEL insurance must be taken out for an employee who has reached the age of 17, has an employment contract and is paid at least EUR 70.08 a month (in 2025) and at least EUR 68.57 a month (in 2024).

The amount of the TyEL contribution is 25.28 per cent of the payroll (2025) and an administrative cost component, specific to each earnings-related pension insurance company, is added to it. In 2024 the amount of the TyEL contribution is 25.12 per cent of the payroll and an administrative cost component is added to it.

The employer pays the full pension insurance contribution to the earnings-related pension insurance company of its choosing. The employee pays their share of the pension insurance contribution, which the employer deducts from the employee’s salary.

Part of the TyEL contribution is paid by the employee. The employee’s contribution is deducted from their wages.

The employee’s contribution is the same in 2025 and 2024:

• 7.15% of the wages for those aged 17–52
• 8.65% of the wages for those aged 53–62
• 7.15% of the wages for those who have turned 63

The final cost of TyEL insurance is based on the wages paid by the employer and on whether the employer is a temporary employer or an employer with an insurance contract. An employer with an insurance contract has an insurance contract with Varma and receives a discount on their TyEL contributions in the form of client bonuses. All of Varma's TyEL customers will benefit from client bonuses right from the start.

Varma is the most solvent pension insurance company so our client bonuses are excellent. The longer an insurance policy is valid at Varma and the more salaries that are paid, the higher the client bonus will be. Varma has been paying the best client bonuses for 17 years now!

Read more about Varma’s client bonuses

In addition to the TyEL contribution, there are other non-wage labour costs, some of which are mandatory.

Examples of mandatory costs are:

• Health insurance contribution
• Occupational accident insurance contribution
• Unemployment insurance contribution
• Occupational health care

Take a look at the table that shows the insurance contribution percentages and limits

Besides mandatory insurance contributions, the following non-labour costs may also apply:

• Group life insurance (mandatory if stipulated in the collective agreement)
• Other voluntary personal insurance
• Tool/equipment compensation
• Daily allowances and per-kilometre allowances
• Fringe benefits, such as phone and meal benefits

You can take out TyEL insurance quickly online. For the insurance application, you only need:

• 2–5 minutes
• online banking codes or a mobile certificate

If you already have TyEL insurance with another company, we will terminate the insurance with that company on your behalf.

Take out TyEL insurance

You can also take out TyEL insurance over the phone. Call us at 010 192 100 and we will go over your situation together. We can take care of all your TyEL insurance matters for you.

You can reach our customer service from Monday to Friday 8–16.