Wage calculator – Estimate the total cost of hiring
When you are planning to hire an employee Elo's wage calculator helps you to calculate the total cost of hiring. Our calculator is also useful when you are considering a salary increase for a current employee. With the wage calculator, you can easily estimate and compare the salary costs of one or many employees. With just a few clicks, you can get information about TyEL insurance contribution and salary related side costs.
Enter the employee's gross earnings amount and age into the wage calculator, and the calculator will provide an estimate of:
- TyEL insurance contribution
- health insurance contribution
- unemployment insurance contribution
- accident insurance and group life insurance premium as well as
- amount of holiday bonus.
Frequently asked questions about calculating employee’s salary
What are the employee's gross earnings?
Gross earnings are the employee's wages from which taxes and other statutory payments have not been deducted. You need TyEL insurance for your employee if the employee's gross salary is at least 70.08 euros per month.
How is the employee's holiday bonus calculated?
The payment of a holiday bonus is based on the collective agreement, the practice of the workplace, or the employment contract. In our wage calculator, you can also add an estimate of the holiday bonus to the salary costs. In the calculator, the share of the holiday bonus is estimated to be 4.5 percent of the salary amount. You can check the employer-specific calculation method if necessary.
What is TyEL insurance contribution?
TyEL insurance contribution is the pension contribution that the employer pays fully to the pension insurance company. TyEL insurance contribution includes both the employer's and the employee's portion of the contribution. The employer pays the employer's portion themselves and withholds the employee's portion from the employee's salary during payroll. The employee's portion of the TyEL insurance contribution varies according to the employee's age and is 7.15 % for employees aged 17−52 and 63 years and older, and 8.65 % for employees aged 53−62.
What are the other mandatory expenses for the employer?
In addition to the TyEL insurance, employer's other mandatory insurances are health insurance, unemployment insurance, as well as accident and group life insurance.
The health insurance contribution is an expense that the employer pays for an employee who is insured in Finland according to the Health Insurance Act. The health insurance contribution is 1.87 % of the wages paid by all employers.
The unemployment insurance contribution includes the employer's and the employee's portion of the contribution. The small employer's unemployment insurance contribution is 0.2 % of the employee's salary, and the employee's unemployment insurance contribution is 0.59 % of the salary. The employer withholds the employee's portion from the employee's salary during payroll. The unemployment insurance contribution is paid for employees aged 17−64.
The amount of the accident insurance premium varies according to the risk of the work and the industry, and the average premium is 0.54 %.
The group life insurance premium varies between insurance companies. The payment is on average 0.06 %, and it is collected together with the accident insurance premium.
When do I need TyEL insurance?
Take TyEL insurance immediately when you hire your first employee. You need the insurance at the latest during the first payroll, when you must report the employee's earnings to the income register.
You need TyEL insurance when the employee:
- works in an employment relationship,
- is at least 17 years old and
- earns at least 70.08 euros per month (in 2025).
The upper age limit for insurance depends on the employee's age:
- for those born in 1957 or earlier, the upper age limit is 68 years,
- for those born in 1958-1961, the upper age limit is 69 years, and
- for those born in 1962 or later, the upper age limit is 70 years.
Work done alongside pension must also be insured if the employee is under the upper age limit for insurance.