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.

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

You can apply to the Employment Fund for adult education allowance if you are a full-time entrepreneur and you work less in your company due to training that lasts at least two months.

You are eligible for the adult education allowance if you have at least eight years of work history in total by the start date of the allowance. This work history includes all the work you have performed under earnings-related pension acts and all the work you have performed as an entrepreneur and insured under the Self-Employed Person’s Pensions Act (YEL) or the Farmer’s Pensions Act (MYEL). Your YEL income also affects the accumulation of your work history. For example in 2019, you may have accumulated a full 12 months of work history if your YEL income has been at least EUR 15,000.