YEL is pension insurance for all entrepreneurs. It ensures that you accumulate an employment pension for your future retirement and provides security if you become ill, have children or find yourself unemployed.
You need YEL insurance if:
- you are aged 18–69,
- you have worked as a self-employed person for more than 4 months
- your annual income is at least 8 575,45 euro (in 2023)
- a family member works in your company
The general rule is that you need YEL insurance if you are an entrepreneur. If the above conditions are met, you must acquire YEL insurance 6 months after becoming an entrepreneur.
Note! If you are retired and work as an entrepreneur, you can take out voluntary insurance for you.
How can I estimate my YEL income?
As an entrepreneur, your pension accumulates based on your own estimation of your income. The YEL income should equal the annual salary that would be paid to an employee with the same professional skills as you have for doing the same work. You should be as realistic as possible when estimating your YEL income, as this is what determines your accumulated pension. It also affects your social security.
Please note, this income level is not the same as your taxable income from self-employment.
There are many YEL calculators to help you calculate the right amount of income for yourself. Try the Entrepreneur’s Calculator here.
How much is the YEL contribution?
The amount of your contribution depends on your age, entrepreneurial history, and number of installments per year. The higher contributions you pay, the higher your pension will be.
The percentage of YEL contributions in 2023 are:
- 24.10% for those aged 18–52
- 25.60% for those aged 53–62
- 24.10% for those aged over 63
If you are a new entrepreneur, you will receive 22% discount on the insurance for the first 48 months (four years).
How can I pay the YEL contributions?
You can pay your annual YEL contributions as you wish. For example, in 1, 2, 3, 4, or 6 monthly installments.
Also remember, the YEL insurance is tax-deductible. Therefore, you can deduct all of your YEL contributions in your taxation. In practice, the YEL tax deduction means that an entrepreneur pays less taxes.
In addition, you can at any time, increase or decrease your pension contributions. The pension insurance contributions can be increased by 10-100%. However, it is important to be aware that reductions to your YEL contributions may affect any unemployment benefits or parental benefits.
Wondering about YEL or want to know more?
We have made YEL insuring as easy as possible. As a user of our service, you can take out YEL insurance easily through us. We only need a few pieces of information to submit your application. You will receive YEL invoices directly to our service when Varma has confirmed your work input. Easy, right?
You can also always contact our customer service either via email firstname.lastname@example.org or phone 09 427 20861 (mon-fri 9-16). Let us help!