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.

Read more about the YEL income

Read more about taking out YEL insurance

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

  1. Sickness allowance for the self-employed

    If you fall ill, you can apply to Kela for an allowance. As a YEL-insured entrepreneur, your waiting period is the day when you fall ill.

    Read more about the sickness allowance for the self-employed

  2. Unemployment benefits for the self-employed

    You are eligible for unemployment benefits if your entrepreneurial activities have ended or you do not work in your company any more for another reason. As a member of an unemployment fund for entrepreneurs, you can receive an allowance based on your YEL income.

    Read more about unemployment security for the self-employed

  3. Parental allowance for the self-employed

    As a self-employed person, you can take parental leave just like anyone else. Your parental allowance will be determined based on your YEL income. Parental allowance is applied for to Kela.

    Read more about the parental allowance for the self-employed

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.