Employers take out insurance for their employees

Employer's health insurance contribution

• Must be paid, if the employee is
  • 16 to 67 year old
  • covered by the Finnish social insurance system in accordance with the Health Insurance Act.
• The obligation to provide insurance ends when the employee turns 68 years of age.
• Report employer's health insurance contribution to the Incomes Register by submitting a employer's separate report.
• Pay health insurance contribution to the Finnish Tax Administration.

Employee's health insurance contribution

• Included in the amount withheld.
• Not reported separately to the Incomes Register.
• Withhold tax from an employee’s wages and report it to the Incomes Register under the income type 402 Withholding tax on the earnings payment report.

Employee's health insurance contribution in international employment situations

Health insurance contribution of an employee working abroad (minimum withholding)

• If one of your employees who is covered by insurance in Finland works abroad and the six-month rule is applicable to their wages, apply minimum withholding based on wages for insurance purposes. Report the amount withheld to the Incomes Register under the income type 402 Withholding tax.

Health insurance contribution of an employee who is a non-resident taxpayer

• If an employee has a non-resident taxpayer’s tax card, the contribution is included in the amount withheld. Report the share of the health insurance contribution to the Incomes Register under the income type 402 Withholding tax.
• If you collect tax at source from the employee’s wages, withhold the health insurance contribution separately and report the following to the Incomes Register on an earnings payment report:
  • tax at source under the income type 404 Tax at source; and
  • the employee’s health insurance contribution under the income type 412 Employee’s health insurance contribution.

Read more about the topic, including the monetary thresholds in the Finnish Tax Administration's guidance Health insurance contributions in international employment situations.

Read more about health insurance contribution

Take out earnings-related pension insurance if

• the employee is aged 17–68 years; and
• you pay at least EUR 70,08 in wages a month to the employee.

The insurance obligation ends when the employee turns

• 68 years, if the person is born in 1957 or earlier
• 69 years, if the person is born in 1958–61
• 70 years, if the person is born in 1962 or later.

Employee’s earnings-related pension insurance contribution

• Withhold the contribution from an employee’s wages and report it to the Incomes Register under the income type 413 Employee's earnings-related pension insurance contribution on the earnings payment report.
• Also enter Earnings-related pension insurance information, i.e. information about the pensions act according to which the income earner is insured:
  • Employee's earnings-related pension insurance, Pension insurance for farmers (MYEL) or Pension insurance for the self-employed (YEL).
  • If required, also specify the pension provider code and pension policy number.

Employer’s earnings-related pension insurance contribution

• Not reported to the Incomes Register.
• Pay the total amount to the earnings-related pension provider, i.e. the employer’s and the employee’s shares of the earnings-related pension insurance contribution. The earnings-related pension provider calculates the contributions based on the information reported to the Incomes Register.
• You get payment information from your own earnings-related pension provider.

Read more about earnings-related pension insurance 

The unemployment insurance contribution must be paid if the employee is aged 18–64 years. The insurance obligation ends when the employee turns 68 years of age.

Employee's unemployment insurance contribution

• Withhold the contribution from an employee’s wages and report it to the Incomes Register under the income type 414 Employee's unemployment insurance contribution on the earnings payment report.

Employer's unemployment insurance contribution

• Not reported to the Incomes Register.
• Pay the total amount to the Employment Fund, i.e. the employer’s and the employee’s shares of the unemployment insurance contribution. The Employment Fund calculates the contribution amount based on the information reported to the Incomes Register.
• If total wages paid to all employees during the calendar year is less than EUR 1,500, you do not need to pay unemployment insurance contributions to the Employment Fund.

Read more about unemployment insurance

Take out accident and occupational disease insurance if

• an employee is in an employment relationship, a public-sector employment relationship or other relationship falling under the Employment Contracts Act with the employer; and
• you pay more than EUR 1,500 in total wages subject to the occupational accident insurance contribution to all your employees during the calendar year.

Accident and occupational accident insurance does not include any separate employee’s contributions or similar age limits as in other insurances.

Accident and occupational accident insurance does not include any separate employee’s contributions or similar age limits as other types of insurance.

Accident and occupational disease insurance premium

• Report with an earnings payment report to the Incomes Register
  • the employee’s occupational class
  • the occupational accident insurance company identifier and the policy number of the insurance, if you have taken out more than one statutory accident and occupational disease insurance policy for your employee.
• The insurance contribution is not reported to the Incomes Register.
  • The occupational accident insurance provider calculates the contribution based on the information reported to the Incomes Register.
  • Pay the insurance contribution to the occupational accident insurance provider after you have received an invoice.

Read more about accident and occupational disease insurance

If you pay wages to a self-employed person insured under the self-employed persons' pensions act (YEL) (yrittäjän eläkelaki 1272/2006) or the farmers' pensions act (MYEL) (maatalousyrittäjän eläkelaki 1280/2006):

• Collect the employer's health insurance contribution from the wages.
• Report employer's health insurance contribution to the Incomes Register by submitting a employer's separate report.
• Pay health insurance contribution to the Finnish Tax Administration.

The following contributions do not need to be withheld from wages:

• earnings-related pension contribution
• unemployment contribution
• accident and occupational disease insurance contribution.

Enter the No obligation to provide insurance data for these types of insurance.

Read more about reporting a self-employed person's wages

The insurance obligations described on this page also apply to households. Health insurance is the only exception.

• If you pay at most 1,500 EUR in wages to a single individual during the year, you do not need to withhold tax or pay the employer’s health insurance contribution.
• If you pay more than 1,500 EUR in wages to a single individual during the year, you need to withhold tax and report the total amount of the employer’s health insurance contribution to the Incomes Register by submitting the employer’s separate report. Read the instructions in health insurance section.

If you pay wages but have not entered into a pension insurance policy with a pension insurance provider, you are a temporary employer.

You can be a temporary employer if

• you do not have any permanent employees;
• you pay at most EUR 10,038 in total wages during six months; and
• you have not entered into a pension insurance policy with a pension insurance provider.

Report the temporary employer’s information to the Incomes Register

• Report the payer type Temporary employer (no TyEL insurance policy).
  • In the interface, this information is reported as part of the payer’s details.
  • In the e-service, this information is reported with other earnings-related pension insurance information on the “Income earner” page.

• Report the pension provider code of the selected pension provider. In the interface, also enter the generic pension policy number of the temporary employer you have obtained from the provider.

• Provide also the payer's address ja the address country code.

The temporary employer’s information does not need to be entered if you only pay non-wage compensation for work, tax-exempt kilometre allowances or other income not used as the basis for pensions. Furthermore, do not enter the information if you pay wages to a person with YEL insurance.

If you have entered into an insurance policy, even if the limit for wages is not exceeded, do not enter the payer type Temporary employer. In this case, enter your pension provider’s information and the pension policy number on the earnings payment report.

When an employee retires, enter the following information on the earnings payment report:

• start date and end date of the employment relationship
• reason code for the termination of the employment relationship according to Incomes Register codes: 6 Retirement.

The earnings-related pension provider obtains the information from the Incomes Register

If the employee’s pension insurance provider is either Keva or the Bank of Finland, also enter

• reason code for the termination of the employment relationship according to Keva or Bank of Finland codes
• grounds for employment registration
• occupational class and other occupation details.

If the employee continues working while being retired, wages paid are reported to the Incomes Register as normal. These employees are usually also insured.

Read more about retirement