Employers’ 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.
This page tells you the sizes of the following employers’ contributions:
- Occupational pension contributions
- Health insurance contributions
- Unemployment insurance contributions
- Occupational accident insurance
- Group life insurance
TyEL employment pension insurance
Employee aged 17–67
The 2024 occupational pension contributions include the second recovery portion for the discount given on 2020 occupational pension contributions.
The average occupational pension contribution is an average of the occupational pension contributions charged by different occupational pension providers. The annually adjusted occupational pension contributions vary between different pension providers. The amount of occupational pension contributions depends on the rebates received by occupational pension providers, which are based on the share of proceeds generated by the company’s solvency position.
| EMPLOYER’S SHARE (% of salary) (In 2023, the 2021 salary amount is used) | 2024 |
| Temporary employer No permanent employees or salary bill for six months less than €9,348 | 26,12 % |
| Average occupational pension contribution. Contribution reduced by possible client rebate and expense loading discount. In addition, if the employer paid at least €2,197,500 in 2021, the disability pension contribution of the appropriate class and premium loss component affect the amount of the insurance. | 24,81 % |
| EMPLOYEE’S SHARE (% of salary) The employee’s share is included in the total payment. The employer withholds the payment from salary. Because of the transitional rule in 2017–2025, a contribution which is 1.5 percentage points larger is withheld from employees aged 53–62 than from other employees. For that period, they will accrue pension at the rate of 1.7% instead of 1.5%. | 2024 |
| 17–52-year-olds | 7,15 % |
| 53–62-year-olds (transitional rule 2017–2025) | 8,65 % |
| 63–67-year-olds | 7,15 % |
| Limit for occupational pension insurance (TyEL) | 2024 |
| No permanent employees and salary bill for six months less than €9,822. | 68,57 €/month |
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.
Health insurance premium
As an employer, you pay health insurance premium to the Tax Administration along with your other self-assessed taxes.
| 2024 | |
| Private employer’s health insurance contribution (if the employee is aged 16–67). | 1,16 % |
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 2024. 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 €1,500 (2024) in a calendar year as salary, you as an employer are not obliged to pay accident insurance premiums.
| 2024 | |
| Average occupational accident insurance contribution. Mandatory when the employees are paid a total of at least €1,400 during a calendar year. | 0,70 % |
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 2024 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 2024, employees have to pay 0,79 % 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 2024, it is 0.27% of the salary until €2,337,000 and 1.09% of salary after that.
As of 2024, the unemployment insurance premium paid by a part-owner employed in the business is 0.43% of salary, and the unemployment insurance premium paid by the employer for a part-owner employed in the business 0.27% of salary.
Unemployment insurance contribution is paid for employees aged 18–64.
| For salary expenses up to €2,237,000 | 2024 |
| Employer’s share | 0,27 % |
| Employee’s share | 0,79 % |
| Total | 1,06 % |
| For the portion exceeding €2,337,000 | 2024 |
| Employer’s share | 1,09 % |
| Employee’s share | 0,79 % |
| Total | 1,88 % |
| For salary paid to a co-owner covered by TyEL occupational pension insurance Not deducted from entrepreneurs with mandatory YEL pension insurance | 2024 |
| Employer’s share | 0,27 % |
| Employee’s share | 0,43 % |
| Total | 0,70 % |
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.
| 2024 | |
| Average group life insurance contribution An accident insurance provider charges this when charging for accident insurance. Rates vary by provider. | 0,06 % |
Further information about group life insurance for employees:
Employers’ contributions 2023
Occupational pension contributions 2023
| EMPLOYER’S SHARE (% of salary) (In 2023, the 2021 salary amount is used) |
2023 |
| Temporary employer No permanent employees or salary bill for six months less than €9,348 |
26,20 % |
| Average occupational pension contribution. Contribution reduced by possible client rebate and expense loading discount. In addition, if the employer paid at least €2,197,500 in 2021, the disability pension contribution of the appropriate class and premium loss component affect the amount of the insurance. |
24,84 % |
| EMPLOYEE’S SHARE (% of salary) The employee’s share is included in the total payment. The employer withholds the payment from salary. Because of the transitional rule in 2017–2025, a contribution which is 1.5 percentage points larger is withheld from employees aged 53–62 than from other employees. For that period, they will accrue pension at the rate of 1.7% instead of 1.5%. |
2023 |
| 17–52-year-olds | 7,15 % |
| 53–62-year-olds (transitional rule 2017–2025) | 8,65 % |
| 63–67-year-olds | 7,15 % |
| Limit for occupational pension insurance (TyEL) | 2023 |
| No permanent employees and salary bill for six months less than €9,348. | 65,26 €/month |
Health insurance contributions 2023
| 2023 | |
| Private employer’s health insurance contribution | 1,53 % |
Unemployment insurance contributions 2023
| For salary expenses up to €2,251,500 | 2023 |
| Employer’s share | 0,52 % |
| Employee’s share | 1,50 % |
| Total | 2,02 % |
| For the portion exceeding €2,251,500 | 2023 |
| Employer’s share | 2,06 % |
| Employee’s share | 1,50 % |
| Total | 3,56 % |
| For salary paid to a co-owner covered by TyEL occupational pension insurance Not deducted from entrepreneurs with mandatory YEL pension insurance |
2023 |
| Employer’s share | 0,52 % |
| Employee’s share | 0,75 % |
| Total | 1,27 % |
Occupational accident insurance 2023
| 2023 | |
| Average occupational accident insurance contribution. Mandatory when the employees are paid a total of at least €1,400 during a calendar year. |
0,70 % |
Group life insurance 2023
| 2023 | |
| Average group life insurance contribution An accident insurance provider charges this when charging for accident insurance. Rates vary by provider. |
0,06 % |