Other company forms and YEL insurance

Your company can also be a general partnership, a limited partnership or a co-operative. As an entrepreneur, you take care of your own pension cover by taking out YEL insurance also in these cases. It will enable you to accrue pension and gain financial security against the loss of your job or your ability to work. The insurance is statutory, i.e. mandatory.

General partnership

A general partnership is established by two or more persons together. The partners can be natural persons or organisations, such as other companies. The partners are personally liable for the partnership’s debts and obligations both on their own behalf and on behalf of the other partners.

The partners of a general partnership are equal when it comes to making decisions on the partnership’s matters. A general partner is insured under the Self-Employed Person’s Pensions Act (YEL).

Take out YEL insurance when the following conditions are met: 

  • You are aged between 18–67. The upper age limit for YEL insurance increases gradually. The obligation to insure ends at the latest at the end of the calendar month in which:
    • An entrepreneur born in or before 1957 turns 68
    • An entrepreneur born in 1958–1961 turns 69
    • An entrepreneur born in or after 1962 turns 70. 
  • Your entrepreneurial activities last at least 4 months.
  • Your YEL income is at least EUR 7,958.99 per year (in 2020). Read more about determining the YEL income.
  • You work in your company. 

A family member working in a general partnership is insured under the Employees Pensions Act (TyEL). The table shows different insurance situations in a general partnership.

 

General partnership Earnings-related pension insurance
A partner working
in the partnership
Take out YEL
A family member working
in the partnership for a salary (non-partner)
Take out TyEL
A family member working
in the partnership without a salary (non-partner)
No earnings-relate pension security



Limited partnership

Like a general partnership, a limited partnership is also an unincorporated business formed by two or more persons. A limited partnership has, in addition to responsible partners, one or more silent partners.

A silent partner finances the business but does not participate in the management of the company and is not personally liable for the partnership’s debts and commitments.

A responsible partner of a limited partnership is insured under the Self-Employed Person’s Pensions Act (YEL).

Take out YEL insurance when the following conditions are met: 

  • You are aged between 18–67. The upper age limit for YEL insurance increases gradually. The obligation to insure ends at the latest at the end of the calendar month in which:
    • An entrepreneur born in or before 1957 turns 68
    • An entrepreneur born in 1958–1961 turns 69
    • An entrepreneur born in or after 1962 turns 70.
  • Your entrepreneurial activities last at least 4 months.
  • Your YEL income is at least EUR 7,958.99 per year (in 2020). Read more about determining the YEL income.
  • You work in your company. 

In practice, the responsible partner is the entrepreneur who manages the partnership. A responsible partner can make decisions on behalf of the partnership on his or her own.

 

Limited partnership Earnings-related pension insurance
A responsible partner working
in the partnership
Take out YEL
A silet partner working
in the partnership for salary
Take out TyEL
A silent partner working
in the partnership without a salary
No earnings-related pension security
A family member working
in the partnership for a salary,
who is not a partner
Take out TyEL
A family member working 
in the partnership without a salary,
who is not a partner
No earnings-related pension security



Co-operative

A co-operative is a company that pursues an economic activity and whose membership and share capital have not been determined in advance. A co-operative is owned by its members, and the number of members can be one or more. The members can be natural persons or organisations. A co-operative is not a for-profit company form in the traditional sense.

The members of a co-operative are usually not personally liable for the co-operative’s commitments.

The obligation to take out YEL insurance applies to a person working in an executive position in a co-operative or another organisation, provided that:

  • the person working in an executive position has a controlling interest of more than 30 per cent in the corporation alone or 
  • more than 50 per cent together with a family member.

A co-operative member is insured under the Self-Employed Person’s Pensions Act (YEL) if the following conditions are also met: 

  • You are aged between 18–67. The upper age limit for YEL insurance increases gradually. The obligation to insure ends at the latest at the end of the calendar month in which:
    • An entrepreneur born in or before 1957 turns 68
    • An entrepreneur born in 1958–1961 turns 69
    • An entrepreneur born in or after 1962 turns 70.