Insurance for foreign employees

If you are a foreign employee, your Finnish employer must insure your work in Finland in the same way as the work of its Finnish employees, that is, under the Employees Pensions Act. If you work in Finland for a foreign employer, your employer has to take out pension insurance for you in the same way.

As a rule, if you are telecommuting in Finland for a foreign employer, your employer must insure you in Finland. If you have been posted to Finland by your foreign  employer you may form an exception.

You will be paid your Finnish earnings-related pension regardless of in which country you live when you retire. That is why the insurance contributions are not refunded to you when you leave Finland. Instead, you will receive a pension from Finland when you retire.

Posted employee from an EU or an agreement country

If you are an employee who has been posted to Finland from an EU/EEA country, Switzerland, the United States, India, Israel, Chile, Canada, Quebec, China or South Korea, you  may be covered by the laws of the sending country. In that case, he insurance contributions are to be paid only to that country. You need a certificate to prove that you are covered by the social security laws of the sending country (the A1 certificate within the EU).

Employee posted from a non-agreement country

The Employees Pensions Act does not apply if you are an employee have you have been posted by a foreign employer to Finland for a short term (no more than 2 years). The requirements are the following:

  • You are not covered by Finnish social security laws when the posting begins.
  • You are not covered by the EU regulations on social security or Finnish laws based on social security agreements.

As an employee posted to Finland from a countrry that does not have a social security agreement with Finland, you do not have to be insured in Finland if your posting lasts for no more than two years.

If your posting to Finland lasts for more than two years, the Finnish Centre for Pensions can grant your foreign employer an exemption from the obligation to insure you under the Employees Pensions Act. Your employer must apply for the exemption. The exemption does not apply if you are a posted employee and subject to the EU regulations on social security or the regulations of a social security agreement.

The exemption is granted for a maximum of five years from the date on which your employment in Finland has begun. The exemption further requires that your employer has taken out other pension insurance for you.

Your employer must use one of the following forms to apply for an exemption from the obligation to insure:

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