YEL and business changes – when does your insurance continue and when should it be terminated?
Changes in your business, such as a change of ownership, company form or ownership structure, may affect your YEL insurance. Below you’ll find guidance for the most common situations.
Secure your pension cover during changes
YEL and TyEL are statutory earnings-related pension insurances. However, their role may change in different situations. In some cases, your insurance continues as before, while in others it needs to be terminated.
Please note that pension insurance can’t be put on hold during changes.
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If the registered line of business of your company no longer reflects your actual operations, submit a notification to the Trade Register as soon as possible.
Your company’s line of business affects your YEL insurance. It determines which industry data your YEL income recommendation is based on. You will receive a recommendation when
- you apply to change your YEL income, or
- we review your income level regularly.
If your work contribution as an entrepreneur changes significantly, update your YEL income in our online service at the same time. Make the change immediately, as YEL income cannot be adjusted retroactively.
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Changes in ownership may affect whether you are insured under YEL insurance or TyEL insurance.
Terminate your YEL insurance if:
- you sell your business and stop operating as an entrepreneur
- you own a general or limited partnership and sell your entire share
- you own a limited liability company and sell your shares so that you own no more than 30% alone, or no more than 50% together with your family members.
If your company has employees, check how their TyEL insurance should be handled.
If you continue working in the company as an employee, your employer will insure you under TyEL.
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If you transfer your business to the next generation and no longer work in the company, terminate your YEL insurance.
YEL insurance is always personal. The next generation takes out their own YEL insurance.
If your company has employees, review their TyEL insurance as well.
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Your company form determines whether you need YEL insurance.
- If you change your business into a limited liability company and own more than 30% alone or more than 50% together with family members, keep your YEL insurance. If your ownership is smaller and you receive a salary, you will be insured under employees’ pension insurance TyEL.
- If you change into a general partnership, keep your YEL insurance. Partners paid a salary are insured under TyEL.
- If you change into a limited partnership and are a general partner, keep your YEL insurance. Other general partners must also take out YEL insurance.
- If you become self-employed as a sole trader, keep your YEL insurance. Family members working in the business must also take out YEL insurance if their work contribution exceeds the minimum YEL income level.
If you have employees, check what you should do with their TyEL insurance.
Notify us of changes to your company form in the online service and update the payer details of your YEL invoices.
If your work contribution changes, also update your YEL income.
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If your illness is short-term, keep your YEL insurance. You can apply for a payment extension for your YEL contributions in our online service.
Read more requesting a payment extention.
If you cannot work for several months due to illness or injury, it is usually recommended to terminate your YEL insurance. End your insurance from the confirmed start of incapacity.
When you return to entrepreneurship, take out a new YEL insurance.
How does YEL income affect benefits?
Your YEL income directly determines the amount of sickness allowance you receive from Kela. The higher your YEL income, the higher your allowance.
Changes to YEL income cannot be made retroactively. It is therefore important to keep it at the correct level. Read more about YEL-income.
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If you go on parental leave and stop working completely, you can terminate your YEL insurance.
If you continue working and your work contribution exceeds the minimum YEL income level, keep your insurance and ensure your YEL income reflects your work.
Your YEL income affects your parental allowance.
Entrepreneur’s parental leave and YEL insurance
Lower and upper limits of YEL income -
You can retire flexibly once you reach the minimum retirement age. Retirement does not start automatically, so remember to apply.
When your old-age pension is granted, your YEL insurance will be terminated automatically.
If you continue working as an entrepreneur while receiving a pension, you can take out voluntary YEL insurance and accrue additional pension.
Read more about when you can retire on an old-age pension
Read how to act as an entrepreneur in retirement
Read more about the lower and upper limits of YEL income.
Terminate your YEL insurance if:
- your entrepreneurial activity ends completely or decreases below the minimum YEL income level
- your ownership or position changes so that you no longer need YEL insurance
- your self-employment is interrupted for a long period (for example due to family leave) and you stop working completely.
You can terminate your YEL insurance yourself in the online service. It can also be terminated retroactively.
If you continue as an entrepreneur while receiving an old-age pension, you can take out voluntary YEL insurance.