In Finland employer has the possibility to take extra voluntary pension insurance for their employees. There are two types of voluntary pension insurance. There is individual and collective voluntary pension insurance. Individual pension insurance is only for one person in a company and collective is for all employees or certain group of employees.

These types of voluntary pension insurances are tax deductible expenses. They are not seen as employees’ earnings. Employer is also free from tax retained in advance or social security tax payments. When employee is eligible for a pension, the voluntary pension insurance is taxable income.

Individual voluntary pension insurance:

Employer can pay 8500 euros annually for voluntary pension insurance per employee. If the amount exceeds 8500 euros annually the rest is taxable salary for the employee. For example employer takes 10 000€ voluntary pension insurance for the employee, so then 8500€ is pension insurance and 1500€ is salary for the employee.

Collective voluntary pension insurance:

Collective voluntary pension insurance means that employer can take the same pension insurance for a group of employees for example for all the bookkeepers. Collective pension insurance requires that the whole group has the same conditions of pension insurance.  Employer’s collective voluntary pension insurance payments are not salary.