YEL contribution
The YEL pension coverage is financed by the self-employed person self. The rate of the YEL contribution is confirmed annually by the Ministry of Social Affairs and Health. The same percentage applies to all companies managing YEL pension coverage.
Self-employed persons must pay the contributions towards their own pensions themselves. In 2010, the YEL contribution is 21.2% of the confirmed and index-adjusted earned income for the persons under 53 years of age. From the beginning of the year following the 53rd birthday, the contribution is 22.4%.
If the self-employed person sets up in business for the first time, he or she is entitled to a 25% discount of the annual YEL contribution for the first 48 months of operations. The reduced YEL contribution is 15.9% of the confirmed earned income for the person under the age of 53 and 16.8% for persons over the age of 53.
The self-employed person may receive a reduction for another self-employment period, if the first of the periods has begun after the year 2000, and there is still reduction time left [from the 48-month period].