For new entrepreneurs

When starting a business, new entrepreneurs have a lot of things to remember and find out. One of the most important things is to take care of their own pension and social security right at the start by taking out self-employed person’s pension insurance, i.e. YEL insurance.

YEL is a self-employed person’s most important insurance

When you take out YEL insurance, you create the foundation for your pension and other social security. That is why taking out YEL insurance is statutory i.e. mandatory. You cannot replace the insurance with voluntary pension insurance. YEL insurance is always personal, not company-specific.

As a new entrepreneur you get a 22% discount on YEL contributions

When you become self-employed for the first time, you will get a 22% reduction on your YEL contributions. You will get the discount during the first 48 months – or four years – of your self-employment. If your self-employment ends earlier, you can use the remaining discount period for another period of entrepreneurship.

The YEL contribution is a percentage of your YEL income. Here you can check your YEL contribution percentage in 2020 with the discount for new entrepreneurs

  • 18.798 per cent of YEL income when you are aged under 53
  • 19.968 per cent of YEL income when you are aged between 53-62
  • 18.798 per cent of YEL income when you have turned 63.

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. Read more about YEL contributions.

What do I get with YEL insurance?

YEL insurance is your security as a self-employed person. With the insurance, you accrue pension for the work you carry out as an entrepreneur. The insurance also has an impact on how large a sickness allowance or parental allowance you receive from Kela and what your unemployment security level is. It also provides you with financial security if you lose your ability to work.

What is YEL income and what does it impact?

YEL income is your estimate of the monetary value of your work input. It is like a price tag you put on your work. The size of the YEL contribution, the amount of pension accrual and your social security level are based on your YEL income. Estimate your income realistically in order to accrue a decent pension and provide security for yourself in various life situations. If your work input changes, change your YEL income.

I’m considering taking out YEL insurance – what should I do?

We have compiled below simple instructions on what you should do if you are considering taking out YEL insurance.

YEL insurance is mandatory for you as a self-employed person, if certain conditions are met. What are these conditions and do you need to insure yourself as a self-employed person? Check the conditions here.

Your pension, social security benefits and YEL contributions will be calculated based on your YEL income. It is important that your YEL income is at the right level from the very start, i.e. that it corresponds to the amount and value of the work you do. To help you estimate it, you can try out different incomes using the YEL calculator. More detailed information on YEL income can be found here.

Once you have checked the YEL insurance conditions and estimated your YEL income, take out YEL insurance. You can take out insurance quickly and easily in our online service. Log in to the service using your personal online banking credentials or a mobile certificate and fill in the electronic insurance application. If we need additional information from you, we will contact you.

If you wish, you can also call our insurance sales team at the number +358 10 284 2385 Mon–Fri between 8 a.m.–4 p.m. Our specialists will be happy to help you take out new insurance.

Take out insurance from Ilmarinen >

When your YEL insurance is in force, you can check and update your information conveniently in our online service. In the service, you can, for example, change your YEL income, check your YEL contribution information and report a change in your contact details. Log in to the service using your personal online banking credentials or a mobile certificate.

Read more about what you can do in the online service >

Hiring your first employee

Your duty as an employer is to take care of the pension cover of your employees. Mandatory insurances include the employee’s pension insurance (TyEL), statutory workers’ compensation insurance and employee’s group life insurance.

Read more about hiring your first employee

Why does it pay off to become Ilmarinen's customer?

Our task is to make sure that you and our other customers receive the pension that you earned from work. We also promote a better working life, helping you and our other customers succeed. We want to be the most attractive earnings-related pension company – responsibly, for you.

With Ilmarinen, handling your pension insurance matters is fast and easy.

  • You have comprehensive online services at your fingertips 24/7.
  • You can reach our specialists by phone and chat.
  • As a new entrepreneur, you get a 22% discount on your YEL contribution. You can also order a guide for new entrepreneurs which will help you take your first steps as an entrepreneur.
  • If your work ability weakens, vocational rehabilitation helps you return to working life.

Become Ilmarinen's customer >

Are you unsure about something? Would you like to hear more about becoming self-employed and taking out YEL insurance? Our customer service personnel are happy to help you with any questions you might have by phone or by chat.

Contact us