Työeläkevakuutus

Työeläkevakuutus, commonly referred to as TyEL, is the earnings-related pension insurance required for employed persons in Finland. It forms part of Finland’s earnings-related pension system and complements the national pension benefits provided by Kela. The purpose of TyEL is to secure a pension income based on earnings during working life and to provide coverage in cases of disability and for survivors after death.

The system is funded through mandatory contributions paid by both the employer and the employee. The exact rates depend on the sector, the employer’s chosen TyEL provider, and the employee’s age and earnings. Contributions accumulate to the employee’s pension accounts and determine the size of future pension payments. Pension benefits are paid by specialized TyEL providers, such as Ilmarinen, Varma, Elo, and Keva, which administer TyEL accounts on behalf of employers or sectors.

Benefits include old-age pensions, disability pensions, and survivors’ benefits, as well as related rehabilitation and pre-retirement support as defined by the law. The calculation of the accrued pension is based on earnings records, years of service, and the chosen retirement age, with certain conditions allowing early retirement.

Administration and oversight are governed by the Employees' Pensions Act (TyEL Act) and supervised by the Finnish Centre for Pensions (Eläketurvakeskus) along with the terms set by the providers. The system is mandatory for employees in paid employment; self-employed individuals participate in a separate scheme called YEL (Yrittäjän eläkevakuutus). Public-sector employees may have TyEL arranged through Keva.