TyELvaroihin

TyELvaroihin is a Finnish term that refers to the pension insurance contributions paid by employers to secure their employees' future pensions. These contributions are mandated by the Employees Pensions Act (TyEL) in Finland. The purpose of TyELvaroihin is to fund the earnings-related pension system, which provides a pension for individuals based on their work history and earnings.

Employers are responsible for paying a certain percentage of their employees' payroll as TyELvaroihin. This percentage is determined by various factors, including the employee's age and the type of employment. The collected contributions are managed by pension insurance companies, which then pay out pensions to retirees. The TyEL system aims to ensure a sustainable and adequate pension for all employees in Finland. The contributions are divided into two parts: the employee's share, which is deducted from their salary, and the employer's share, which is paid in addition to the employee's wages. This shared responsibility is a key feature of the Finnish pension system.