Insuring an employee moving abroad from Finland

Are you posting an employee abroad? Is your employee going abroad to work remotely? As an employer, you need to take care of your employee’s pension cover even when they work abroad.

When your employee goes to work abroad

When your employee goes to work abroad, you as an employer need to take care of your employee’s pension and social security. What you need to do when your employee works abroad depends on the country in which your employee works.

First check below if the country in which your employee will work is an EU country, an EEA country, a social security agreement country or a non-agreement country, and read the instructions for each specific case. Then learn about the salary for insurance purposes, which is an important part of insuring work abroad.

EU countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the *UK.

*For persons going to the UK, the same rules apply as if the UK were still a member of the EU.

EEA countries: Norway, Iceland and Liechtenstein.

Social security agreement countries: Australia, Canada, Chile, China, India, Israel, Japan, Korea, the Province of Quebec and the USA.

Insuring work abroad in different countries



The salary for insurance purposes determines the amount of TyEL insurance contribution 

When your employee works abroad, one important thing to remember is the salary for insurance purposes. The salary for insurance purposes means the gross salary that your employee would earn for similar work in Finland. The salary for insurance purposes is always based on the pay level in the home country and the actual amount of salary does not affect it. The salary for insurance purposes can be equal to or smaller or larger than the actual salary paid.

Agree with your employee on the salary for insurance purposes when signing a posting agreement. During the posting abroad, you will pay TyEL contributions based on the salary for insurance purposes and your employee will accrue pension based on it. Report the salary for insurance purposes to the Incomes Register under the income type 352. Read more about international situations in the Incomes Register (vero.fi).

It is not necessary to determine a salary for insurance purposes for periods of posting abroad that last less than six months, if:

  • your employee will perform similar work abroad as in Finland at the time of departure 
  • your employee’s salary will continue to be paid from Finland
  • no separate salary has been agreed on for the duration of the employee’s posting. 

When agreeing on the salary for insurance purposes, consider the following:

  • The fringe benefits your employee would receive for similar work in Finland 
  • The bonuses as of the very beginning if they were used in Finland for similar work 
  • The working hours – will the employee’s working hours be longer abroad than the normal working hours in Finland? 
  • Special requirements of the work abroad – does the work abroad require special knowledge or skills

Read more about the salary for insurance purposes on the Earnings-Related Pension Acts Service website (telp.fi, in Finnish)

Read more about the TyEL contribution

Read more about reporting earnings data to the Incomes Register

Below you can find an example of how the salary for insurance purposes is calculated.