When your company hires employees, they must take care of the insurance of their employees as well as the payment of wages, withholding tax and insurance premiums.
Statutory insurance and other payments include:
employment pension insurance
insurance against the risk of accident and occupational disease
group life insurance for employees
unemployment insurance contribution
health insurance payments (former social security contributions)
The employer may choose to complement the statutory insurance coverage with voluntary insurance policies, which are issued by private general insurance companies.
Employment pension insurance
The employer must arrange and pay for pension cover for all of its employees.
The employer is obligated to insure its employees by taking out a pension insurance policy pursuant to the Employees’ Pension Act (TyEL) or by taking care of the insurance premium payments of a temporary employer. The employee also contributes to the pension costs.
Employment pension premiums are paid for employees aged 17–67 and retired employees.
A pensioner's gainful employment is to be insured if the employment is concurrent with an old-age pension starting from the age of 68. Conversely, gainful employment concurrent with a full or partial disability pension is to be insured until the age of 68, and this employment contributes to the overall pension accrual.
Employment pension insurance can be taken out with the desired employment pension company or fund. All employees can be insured by the same institution. Information indicating the pension institution with which the pension cover for employees is arranged must be available to the employees at the place of work.
Submit electronic notifications
through the TYVI service
in the Palkka.fi service
through the online service of your employment pension company.
Insurance against the risk of accident and occupational disease
The employer must take out statutory insurance against the risk of accident and occupational disease for their employees in an employment relationship always prior to the work commencing. Insurance policies cannot be taken out retrospectively.
The employer is under the obligation to provide insurance if the amount they pay or have agreed to pay in wages for work carried out exceeds EUR 1,200 during a calendar year. The amount is both employer and time-specific, meaning that all the wages paid by the employer for work carried out during one calendar year are added up. The date the wages are paid is irrelevant.
The obligation to provide insurance cover does not depend on the number of employees. Therefore, large industrial corporations and an individual household, association or organisation that orders work in an employment relationship are under the same obligation to provide insurance.
The amount of the accident and occupational disease insurance premium varies between 0.1 and 7% depending on the danger inherent in the work and the line of business.
The employee is always entitled to compensation for an occupational accident or occupational disease, even when the employer has no obligation to insure or has not taken out insurance in accordance with law. The claim will then be processed and compensation paid by the Finnish Workers’ Compensation Center (TVK).
Submit electronic notifications
through the online service of your pension company.
Failure to fulfil the obligation to provide insurance against the risk of accident
An employer that has neglected the obligation to provide insurance is liable to pay TVK an amount corresponding to reasonable insurance premiums for the duration of the failure to provide insurance. In addition, the employer must pay a penalty fee which may be up to three times the amount of the unpaid insurance premiums. If TVK has paid reimbursement to an employee who has been insured in such work, the employer is also charged reimbursement up to the maximum amount provided for by the law (EUR 5,140 in 2017). For more information on the failure to provide insurance, please visit the TVK website.
Group life insurance for employees
The employer must take out an employees' group life insurance policy if the national collective labour agreement for the line of business requires it. Almost everyone who has to be insured with the Employment Accident and Occupational Disease Act is included within the scope of employees' group life insurance. The insurance policy must be taken out from the insurance company that provides the employer’s employee insurance pursuant to the Employment Accident and Occupational Disease Act.
The insurance premium is less than 0.1%, and is calculated on the basis of the same amount of wages as the accident and occupational disease insurance premium.
The insurance is valid during the employee’s work and leisure, and, in the event of the employee's death, indemnities are paid to beneficiaries on the basis of it. The indemnities are processed by TVK.
For more information on employee's group life insurance, please contact your insurance company or visit the website at www.trhv.fi/en/
Unemployment insurance contribution
Both employers and employees are obligated to pay unemployment insurance contributions. The liability to pay unemployment insurance contributions mainly applies to employees aged 17 to 64. As of 2016 an employer is liable to pay unemployment insurance contributions if it pays its employees a total salary of more EUR 1,200 during the calendar year. Entrepreneurs are not liable to pay unemployment insurance contributions from the income received from their business operations.
The amount of unemployment insurance contributions is determined on the basis of the wages paid to employees. The amount of unemployment insurance contributions (contribution percentages) and due dates are ratified annually.
However, the employer must always withhold the employee's unemployment insurance contribution from the wage upon each payment of salary. The employer is responsible for payment of the employer's and employee's unemployment insurance contributions to the Unemployment Insurance Fund. If the employer is not liable to pay unemployment insurance contribution, the amount withheld from the employee’s wages does not need to be paid to the Unemployment Insurance Fund.
For additional information, please visit the Unemployment Insurance Fund website.
Self-employed person’s statutory insurances