How much does TyEL insurance cost?
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 71.72 a month (in 2026).
The amount of the TyEL contribution is 24.85 per cent of the payroll (2026) and an administrative cost component, specific to each earnings-related pension insurance company, 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.
Employee’s share of the TyEL insurance contribution
Part of the TyEL contribution is paid by the employee. The employee’s contribution is deducted from their wages.
The employee’s contribution in 2026 is 7.30% of the wages.
Is it possible to get a discount on the TyEL contribution?
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 18 years now!