SELF-EMPLOYED PERSON’S PENSION INSURANCE

A self-employed person has to insure his or her personal pension rights under YEL (the Self-Employed Person´s Pensions Act).

A foreign self-employed person living in Finland must also take out YEL insurance.

YEL insurance must be taken out within six months of the start of activities falling under YEL. Statutory pension insurance under the YEL scheme is not voluntary for the self-employed and cannot be replaced by any optional pension insurance.

Employers will insure all of their employees according to Employees Pensions Act, TyEL.

The correct definition of YEL income selected as the basis of the pension insurance is important because the self-employed person’s pension and the daily allowances for sickness insurance are determined according to YEL income.

Pension coverage

Employment pension secures an entrepreneur’s livelihood once gainful employment ends at pension entitlement age. Young entrepreneurs also have security in the case of disability, as do his/her close relatives in the case of death. Employment pension rehabilitation provides the possibility to continue working despite illness.