To whom does YEL apply?

Any person who is domiciled Finland and gainfully employed but not working under an employment contract comes under the YEL scheme.

The requirements for inclusion in the YEL scheme are as follows:

• The self-employed person shall be aged between 18 and 67. Self-employment shall have continued unbrokenly for at least four months after the self-employed person reached the age of 18. YEL insurance will, however, run and contributions are collected from the outset of business operations.
• The earnings average at least EUR  6,775.60 per year (in 2010).

The obligation to take out insurance starts from the beginning of the month following the person´s 18th birthday and ends at the end of the month in which the person turns 68.

The self-employed person before the age of 68 must always be insured and contributions paid if they work while drawing a pension.  A self-employed-person is not required to take out YEL insurance if he or she is engaged in business activities while drawing an old-age or early old-age pension.  Working will also accrue new pension.

Subsidiary business

YEL also applies to a person in an employment or service relationship, if he/she obtains earnings from his/her subsidiary business.

Who is self-employed?   

The YEL scheme covers:

• self-employed persons and entrepreneurs plus members of such persons’ family who are working in the firm without pay
• partners in a partnership
• responsible partners in a limited partnership
• shareholders with leading positions in a limited company who alone or together with their family members own more than half of the shares or the number of votes.