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Employee pension insurance TyEL or entrepreneurs YEL?

A close-up of a young person's hand gently resting on an elderly person's hand holding a cane, symbolizing the support and security provided by retirement insurance throughout life

A Ninjou light worker is working in an employment relationship and as a normal part of that relationship you will be covered by the best pension insurance on the market: the Employees' Pension Insurance (TyEL). When you work for Ninjou, all the work we invoice you for always automatically includes occupational pension insurance and other social security contributions. So you don't need self-employed pension insurance because you are an employee all the way.

TyEL guarantees you a fair accrual of an occupational pension and allows you to receive, for example, an old-age pension and a sickness pension based on your taxable income during your working life.

Unlike the self-employed person's YEL pension, the employee's occupational pension contribution is not determined independently but averages out at around 25% of your taxable income. The employer's share of the TyEL contribution is usually around 18% and the employee's share around 7%. These figures vary from year to year. Roughly speaking: if you earn a taxable salary of €100, you have to pay an additional €25 in pensions. We invoice the customer for that pension contribution. Of course, when we receive your salary request, we have to plan together an adequate invoicing amount.

The advantage of the TyEL contribution compared to the YEL is mainly that you cannot underpay the occupational pension contribution, even by accident. Ninjou monitors and ensures that the pension contributions automatically go to the pension company according to your income. Many entrepreneurs set their YEL income low in order to save on pension contributions*. This leads to lower pension contributions in the long run. For employees, the pension is determined directly on the basis of salary income, which is usually a better reflection of actual earnings.

General advantages of the pension system:

  • old-age pension
  • partial early retirement pension
  • disability pension
  • occupational pension
  • rehabilitation benefits
  • family pension

Your work has value, and it's not worth trampling on it by saving in pension contributions.