EFFECT OF YEL INCOME ON OTHER SOCIAL SECURITY

Determination of a self-employed person’s sickness allowance is solely based on his or her confirmed earned income under YEL. Also the employment security depends on the YEL income.

In 2012, the Social Insurance Institution (Kela) calculates the sickness allowance as well as the maternity, paternity and parent’s allowances on the basis of the 2010 average YEL income which the pension company has computed and reported to the tax authorities.

If the YEL income of the six months preceding the self-employed person becoming ill converted into annual income is 20% higher than the income in 2010, the allowance can be applied for in line with the higher income.

YEL income affects unemployment benefits

An entrepreneur is within the scope of unemployment benefit only if his or her YEL income is at least 8,520 euros a year. This minimum level also constitutes one of the prerequisites for the entrepreneur receiving a basic unemployment allowance from Kela, or for joining an unemployment fund. The income selected as the basis for earnings-related daily allowance from an unemployment fund cannot exceed the amount of the YEL income.