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Self-employed
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Social security and pension for the self-employed
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Social security for the self-employed
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Family leave for entrepreneurs
Family leave for entrepreneurs – YEL and parental allowance
As an entrepreneur, you can take family leave and receive a parental allowance from Kela. The allowance is paid to you personally, even if your business activity slows down during your family leave.
Did you know your YEL income directly affects your parental allowance?
The amount of parental allowance is based on your YEL income, which reflects the work you do as an entrepreneur.
The same YEL income also affects your future pension. YEL is not only pension insurance. It defines the level of financial security you have during family leave.
With our YEL calculator, you can see how much parental allowance you could receive during family leave.
Find answers quickly
What family leaves can an entrepreneur take
How parental allowance is calculated for entrepreneurs
How much parental allowance an entrepreneur receives
Should you change your YEL income before family leave
What to do with your YEL insurance during family leave
What family leaves can an entrepreneur take?
Yes – an entrepreneur can take the same family leaves as an employee.
As an entrepreneur, you can receive the following benefits from Kela:
- pregnancy allowance
- special pregnancy allowance
- parental allowance
- partial parental allowance
If your child is under 3 years old and you work no more than 30 hours per week (or a maximum of 80% of full-time work), you may also receive flexible care allowance.
How is parental allowance calculated for an entrepreneur?
Parental allowance for entrepreneurs is based on annual income. For entrepreneurs, this annual income is determined by your YEL income.
If you also work as an employee outside your own business, the allowance is based on:
- your YEL income
- any salary income
The annual income is calculated from the income of the 12 months preceding the month before your family leave starts.
How much parental allowance does an entrepreneur receive?
Below are examples of how YEL income affects the amount of parental allowance.
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Good to know
These examples are indicative. The allowance amount is affected by any changes made to your YEL income during the 12 months used for calculation. You can get an accurate estimate with the YEL calculator.
Should you change your YEL income before family leave?
Yes. Planning ahead is recommended.
It is a good idea to review your YEL income before family leave if:
- your work input has increased
- your income does not match your current YEL income
- family leave is approaching and you expect to work more or less than before as an entrepreneur
Correctly set YEL income:
- provides financial security during family leave
- also affects your pension
What should I do with my YEL insurance during family leave?
If you do not work as an entrepreneur during family leave, you can terminate your YEL insurance. For short leaves of a few weeks, it is usually not necessary to terminate the insurance.
Terminate YEL insurance in the entrepreneur service
If you work part-time during family leave, keep your YEL insurance valid. You can easily adjust your YEL income to match your reduced workload in the online service.
Change your YEL income in the entrepreneur service
When you return to entrepreneurship after family leave, take out a new YEL insurance if you terminated your insurance during family leave.