Social security for the self-employed

As a self-employed person, it is easy for you to build your pension and social security: just take out self-employed person’s pension insurance, or YEL insurance. 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, if you fall ill or take parental leave, for example.

YEL income is the basis for your social security

YEL income is the basis for a self-employed person’s social security. Take out YEL insurance once you have started working as a self-employed person. At the same time, estimate your YEL income. The insurance and the YEL income form the basis for your pension and social security benefits.

In addition to your future pension, the benefits paid by Kela, such as sickness allowance and parental allowance, are determined based on the YEL income. A self-employed person’s accident insurance contribution and the compensation for loss of income paid under the insurance are also based on your YEL income. YEL income also determines the level of your unemployment security. As a member of an unemployment fund for entrepreneurs, you can receive an allowance based on your YEL income.

Your YEL income impacts all of the following pension and social security benefits:

  • the allowances you receive from Kela (such as the infectious disease allowance, sickness allowance, parental allowance)
  • disability pension
  • earnings-related pension
  • vocational rehabilitation benefits
  • survivors’ pension in the event of death
  • compensation for loss of income paid under accident insurance (daily allowance, rehabilitation allowance and workers’ compensation pension)
  • unemployment security level

If you start studies, apply for adult education allowance