Temporary employer is a concept used by earnings-related pension providers. A temporary employer has not concluded an agreement with an earnings-related pension provider with regard to an employee insurance policy. The employer arranges the employees’ pension provision either as a temporary employer or as a contract employer. If the company has an insurance agreement under TyEL, it is not regarded as a temporary employer.
A temporary employer does not have permanent employees
You are a temporary employer if you pay no more than EUR 8,676 in wages over a period of six months (in 2020) and do not have any permanent employees. Temporary employers do not have a valid pension insurance policy with an earnings-related pension provider.
If you wish, you can also enter into a pension insurance policy as a temporary employer even if you paid less than EUR 8,676 in wages over a period of six months.
- pays no more than EUR 8,676 in wages over a period of six months (in 2019)
- does not have permanent employees
- has not entered into a pension insurance policy with an earnings-related pension provider.
A temporary employer reports Payer type to the Incomes Register
- Report Temporary employer as payer type.
- If you only pay non-wage compensation for work, tax-exempt kilometre allowances, or other such income on which pension is not based, do not report the payer type Temporary employer.
Wages are only paid to a YEL-insured person
If you are a temporary employer but only pay wages to a YEL-insured person, do not report temporary employer as payer type. Instead, report Pension insurance for the self-employed (YEL) and Type of exception to insurance under Earnings-related pension insurance.