Private sector employers are obliged to provide employment insurance for all employees, (TyEL) if:
- employees are at least 17 years old
- their aggregate monthly earnings exceed 58.27 € (2018).
The upper age limit for insurance is either 68, 69 or 70 years, depending on what year the employee was born.
Household employed employees are also due to be insured by TyEL insurance. Household employers are affected by the same TyEL insurance rules and payments as other employers.
TyEL in a nutshell
- With TyEL insurance, an employer is able to arrange for employee pension security.
- TyEL insurance is mandatory. It is the responsibility of the employer to account and record TyEL payments to Veritas whenever the aforementioned have been fulfilled. A portion of the TyEL payment remains for the employee themselves to pay. The employer is also responsible for the employee’s payments of this portion to the insurance company.
- TyEL insurance is to be activated within the first month of paying salaries. Any delays in implementing TyEL insurance may have failure-to-pay consequences.