Self-employed person’s pension insurance YEL
As a self-employed person, you are responsible for your pension cover. You take care of it by taking out self-employed person’s pension insurance, i.e. YEL insurance. Read about YEL insurance on this page.
What is YEL insurance?
YEL insurance is pension insurance in compliance with the Self-employed Persons’ Pensions Act (YEL). YEL insurance is an obligatory insurance for entrepreneurs as it is the basis for an entrepreneur’s pension and social security. YEL is the most important insurance for entrepreneurs.
With every YEL insurance contribution you accrue pension for when you retire and improve your other social security benefits. YEL insurance secures your income when you fall ill, lose your work ability or take parental leave. YEL also determines the size of the allowances paid by Kela, such as sickness allowance and unemployment benefit.
YEL insurance is always personal, not company-specific. You cannot replace YEL insurance with voluntary pension insurance.
When do I need to take out YEL insurance?
Take out YEL insurance when the following five conditions are met:
- You are aged between 18–67
- You work as a self-employed person for at least four consecutive months.
- Your YEL income is at least EUR 9,010.28 in 2024 (EUR 8,575.45 per year in 2023).
- You work in your company.
- You live in Finland.
The mere fact that you own a company does not obligate you to take out YEL insurance - you must also work in your company. The legal form of your company and your ownership share also play a role in determining whether you need to take out YEL insurance. It is worth taking care of the YEL insurance immediately, but in any case within six months of when your self-employment under YEL started.
The YEL contribution is based on your YEL income
The YEL insurance contribution or the YEL contribution is a percentage of your YEL income. The size of the YEL contribution is also affected by your age, your possible discount for new entrepreneurs and the due months of your contributions. You pay YEL contributions for the period when the YEL insurance is in force.
You can deduct the YEL contributions in your personal or your spouse’s taxation or in your company’s taxation. When you deduct the YEL contributions in taxation, there is actually less to pay.
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Social security and pension for the self-employed
The YEL insurance secures your income in the event of old age, disability or the death of a family provider. YEL also determines the size of the allowances paid by Kela.
Read more about social security and pension -
For new entrepreneurs
As a new entrepreneur, you get a 22 per cent discount on your YEL contribution for four years.
Read more information for new entrepreneurs -
Light entrepreneur
As a light entrepreneur, you do not need to have your own company or a business ID, but you may still need YEL insurance.
Read more about insuring a light entrepreneur -
YEL certificate
You can download certificates for different purposes in our online service. You can, for example, provide proof that your insurance is in force and you have paid your insurance contributions.
Read more about the YEL certificate -
Switch over to electronic invoices
If you wish to switch from paper invoices to electronic invoices, you can choose a corporate online invoice or an e-invoice.
Read more about electronic invoices -
Hiring your first employee
When you hire an employee, you become an employer. In this case, you also need TyEL insurance.
Read more about hiring your first employee
Handle YEL insurance matters online
As our customer you can you can take care of your insurance matters when it best suits you in self-employed person’s online service. You can view for example the information on your YEL contributions and check the amount of your YEL income. You can also inform us of changes in your contact details, send us a message or terminate your YEL-insurance, if your work as an entrepreneur is ending.
Read more about self-employed person's online service
Why should I take out YEL insurance from Ilmarinen?
1. Easy insurance – the extensive online service for self-employed persons is available 24/7 – it takes just a second to check, for example, your YEL income amount and how much pension you have accrued.
2. Competent service – our competent professionals are happy to help you with any questions related to insurance and pensions.
3. Responsible pension cover – our operations are responsible and we invest the pension contributions you pay profitably and securely.
4. A financially sound partner – your pension is secure with the sector’s most solvent pension insurance company.
5. Vocational rehabilitation secures your self-employment – if your state of health weakens and affects your work, we can help you to continue as an entrepreneur.