Estimate your earned income

Adjust earned income

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YEL insurance brings security for the self-employed

Pension insurance for the self-employed (YEL) is entrepreneurs' most important insurance. If you lose your ability to work, fall ill or take parental leave, YEL insurance will help. Each YEL contribution increases the size of your pension and improves your other social security benefits. 

Your insurance contribution is based on your earned income under the Self-Employed Persons’ Pensions Act (YEL). It is the sum that you could pay as an annual salary to someone doing the same work.

Read more about YEL insurance

Estimate earned income accurately

Estimate your earned income yourself based on the earned income instructions given by the Finnish Centre for Pensions (the instructions are available in Finnish and Swedish). After receiving your estimate, we will confirm your earned income. If you are a full-time self-employed person we recommend that you set your earned income at a minimum of EUR 20,000–30,000. This will guarantee you sufficient pension and social security.

Adjust earned income according to situation

Adjust your earned income under YEL each time the value of your work input changes. You will simultaneously be adjusting your YEL insurance contribution. And your pension and social security benefits. You can also adjust your earned income temporarily without any special grounds. By doing that, you are also adjusting your pension security. However, your other social security remains unchanged, as it is based on the confirmed earned income.

Adjust your earned income

Adjust your YEL contribution temporarily

How to estimate YEL income?

The most important aspect of earned income is that it is based on the value of your work input. However, earned income cannot be just any sum: it has a lower and an upper limit. Both change annually. If your earned income is at least equal to the lower YEL income limit, you have the right and the obligation to take out YEL insurance. In 2018, the lower limit for YEL income is EUR 7,656.26 (EUR 7,645.25 in 2017) and the upper limit EUR 173,875.00 per year (EUR 173,625.00 in 2017).

 

What is YEL income?

  • The estimated value of your work input as a self-employed person
  • Set at a level that corresponds at least to the amount that would be paid to a person with similar expertise if hired to do your work.

YEL income is not:

  • The entrepreneur’s taxable income or the company’s profit
  • The same as wages or salary
  • Dependent on the profitability of the company’s operations
  • Variable according to temporary changes in actual income

YEL income annual limits

In 2018 € / year
Entrepreneurial activities must be insured if the self-employed person’s work input is valued at more than 7,656.26
The upper limit of YEL income for a self-employed person is 173,875.00​  

A self-employed person who is unemployed can collect basic daily allowance from Kela if his/her YEL income is at least

12,576.00
A self-employed person can join the unemployment fund if his/her YEL income is at least 12,576.00​
Average YEL income in Finland 22,000.00

How does earned income affect you and your family's lives?

Situation Benefit to be applied for Impact of earned income Who pays

You fall ill

 

Daily sickness allowance Your daily sickness allowance is based on your earned income Kela

You have a baby

 

Parental allowance  The allowance is based on your earned income Kela

You lose your ability to work due to an accident or illness

 

Vocational rehabilitation and/or disability pension  The compensation is based on your earned income Employment pension insurance company

You lose your ability to work or die due to an accident

 

Compensation from accident insurance: daily allowance, rehabilitation, survivors’ pension etc. The compensation is based on a sum that is at most equal to your earned income Non-life insurance company
You lose your job Basic daily allowance

To accumulate the daily allowance, your earned income must be at least EUR 12,576.00 in 2018 (EUR 12,564.00 in 2017)

 

Kela 
  Labour Market Subsidy

A means-tested benefit when you are not entitled to basic daily allowance

 

Kela
You lose your job Earnings-related daily allowance To accumulate the daily allowance, your earned income must be at least EUR 12,576.00 in 2018 (EUR 12,564.00 in 2017) The Unemployment Fund for Entrepreneurs and the Self-Employed AYT or the Finnish Unemployment Fund for Entrepreneurs SYT

You want to work less or take out part of your pension

 

Partial early old-age pension  The amount is either 25 or 50 per cent calculated from the pension that you have accrued by the end of the year preceding your retirement Employment pension   insurance company

You age

 

Old-age pension or years-of-service-pension (under certain conditions) The pension is based on your earned income Employment pension insurance company

You die

 

Survivors’ pension The pension is based on your earned income Employment pension insurance company

PARTIAL OLD-AGE PENSION IS A NEW, FLEXIBLE PENSION TYPE