Employers are obliged to insure their employees

As a rule, employers are obliged to insure their employees and pay social insurance contributions from the wages and other remunerations they pay. 

Social insurance contributions comprise the earnings-related pension insurance, the unemployment insurance, and the accident and occupational disease insurance contributions.

The employer is obliged to pay both the employee's and the employer's social insurance contributions. The employer collects the employee's share of the contributions from the income paid to the employee and forwards the contributions to the party in charge of managing the social insurance. The employer does not need to collect the contributions if:

  • the type of income paid is not subject to social insurance contributions;
  • the income earner is not subject to Finnish social security; or
  • the payer is not under an obligation to insure the income earner, for example due to the income earner's age or if the amount of income paid falls below the threshold for insurance.

If necessary, the employer must check with the insurers whether a payment is subject to insurance contributions, and with the Tax Administration whether a payment is subject to health insurance contributions.

Read more:

Earnings-related pension insurance

Health insurance contribution (in Finnish)