TyEL, the Employee’s Pension Act | Alandia Försäkring

TyEL, the Employee’s Pension Act

All employees are covered

An employer is obliged by law to arrange pension provision for the employees. The employee must be covered from the start of the month following when the employee turns 17 year of age. The upper age limit för insurance is either 68, 69 or 70 years depending on what year the emploee was born.

Employees earning less than 58,19 euro (year 2017) is not requred to be insured.

Employers insures their employees according to TyEL with a insurance contract or as an occasional employer.

Insurance Contract

You have at least one permanent employer or a salary over 8334 euro during a 6 month period. (year 2017)

An employer with a insurance contract have rights to a client bonus.

Occasional employer

As a occasional employer you have no permanent employer and the salary is under 8334 euro during a six month period.(year 2017)

The insurance is provided for your employees by paying the insurence fee to the pension company at the latest 20th the month following salary payment.

The employer takes care of the TyEL contribution

The pension contributions are financed both by the employer and the employees. The employer pays the whole amount to the pension company but with-holds the employees part from the salary.