FLEXIBILITY IN YEL CONTRIBUTIONS

YEL income cannot be increased retroactively, but the entrepreneur can increase his/her YEL income with additional contributions and improve the pension accumulated from the year in question.

The additional annual contribution can be between 10 and 100% compared with the contribution based on the confirmed YEL income.  The earned income may also be adjusted downwards, in which case the reduction in the contribution can be 10–20%.

Additional contributions, as well as other YEL payments, are tax deductible. Flexibility payment does not change the confirmed income.

When calculating the stabilised income of part-time pension, the effect of additional contributions will not be taken into account regarding the year preceding the beginning of the part-time pension; instead downward flexibility has full effect.

Flexibility in YEL contribution does not affect the amount of daily sickness allowance. The calculation of the daily sickness allowance is based on the confirmed YEL income.