Self-employed person’s pension insurance YEL
As a self-employed person, you are responsible for your pension cover. You take care of it by taking out self-employed person’s pension insurance, i.e. YEL insurance.
What is self-employed person’s pension insurance?
YEL insurance is the basis for your pension and social security. That is why the insurance is statutory, in other words mandatory. You grow your pension with each YEL contribution you pay. At the same time, you improve your other social security benefits. You cannot replace YEL insurance with voluntary pension insurance.
When do you need to take out YEL insurance?
Take out YEL insurance when the following five conditions are met:
- You are aged between 18–67
- You work as a self-employed person for at least four consecutive months.
- Your YEL income is at least EUR 8,063.57 per year (in 2021).
- You work in your company.
- You live in Finland.
The mere fact that you own a company does not obligate you to take out YEL insurance; you must also work in your company. The legal form of your company and your ownership share also play a role in determining whether you need to take out YEL insurance. It is worth taking care of it immediately, but in any case within six months of when your self-employment under YEL started. You pay YEL contributions for the period when the insurance is in force.
The YEL insurance contribution is based on your YEL income
The YEL contribution is a percentage of your YEL income. The size of the contribution is also affected by your age, your possible discount for new entrepreneurs and the due months of your contributions.
You can deduct the YEL contributions in your personal or your spouse’s taxation or in your company’s taxation. When you deduct the YEL contributions in taxation, there is actually less to pay.
The YEL calculator gives you an estimate of your pension, the level of your social security and your insurance contribution.
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Social security and pension for the self-employed
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.
Read more about social security and pension -
YEL income
Your YEL income determines the size of the pension you accrue from your self-employment and your other social security benefits. The YEL income also affects your YEL contribution.
Read more about YEL income -
YEL certificate
You can download certificates for different purposes in our online service. You can, for example, provide proof that your insurance is in force and you have paid your insurance contributions.
Read more about the YEL certificate -
For new entrepreneurs
As a new entrepreneur, you get a 22 per cent discount on your YEL contribution for four years.
Read more information for new entrepreneurs -
Light entrepreneur
As a light entrepreneur, you do not need to have your own company or a business ID, but you may still need YEL insurance.
Read more about insuring a light entrepreneur -
Switch over to electronic invoices
If you wish to switch from paper invoices to electronic invoices, you can choose a corporate online invoice or an e-invoice.
Read more about electronic invoices
Take out YEL insurance with Ilmarinen
With Ilmarinen, doing business is easy and your pension cover is guaranteed. We are there for you every step of the way. We are at your service by phone, online and by email. As Ilmarinen’s customer, you automatically gain access to a versatile online service that allows you to take care of matters related to your YEL insurance around the clock.
Read more about being Ilmarinen’s customer
Handle insurance matters online
In our online service, you can take care of your insurance matters when it best suits you. By logging in to the service using your personal online banking credentials, you can view, for example, the information on your YEL contributions and check the amount of your YEL income. You can also inform us of changes in your contact details or send us a message.
Do you have questions regarding taking out insurance? Call our insurance sales team at +358 10 284 2385 from Monday to Friday between 8 a.m. and 4 p.m.