Ilmarinen
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Self-employed
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YEL insurance
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Who is YEL insurance for and when?
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Part-time entrepreneur
Part-time entrepreneur and YEL insurance
You can work as an entrepreneur while gainfully employed or studying at the same time. A self-employed person’s pension insurance, or YEL, is mandatory also for a part-time entrepreneur when certain conditions are met.
When does a part-time entrepreneur need to take out YEL insurance?
As a part-time entrepreneur, you pursue business activities but earn your main income from work carried out in an employment relationship with another employer. It is thus possible for you to work simultaneously as an employee and a part-time entrepreneur. In that situation, your employer provides you with employees’ pension insurance (TyEL) for your salaried work and in addition, you insure yourself as an entrepreneur by taking out self-employed person’s pension insurance (YEL).
Take out YEL insurance when the following five conditions are met:
- You are 18–67 years old. 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 four months.
- Your YEL income is at least equal to the lower YEL limit, i.e. EUR 9 010,28 per year in 2024 (EUR 8,575.45 per year in 2023).
- You work in your company.
- You live in Finland.
Esimerkki: Riku is an enthusiastic photographer. He shoots family portraits at weekends and works full-time in a grocery store. Riku’s photography clientele is expanding and he dedicates more and more time to his hobby. Riku sets up as a sole trader. He estimates that the value of his work input will exceed the YEL lower limit (€8,261.71/year) and takes out YEL insurance. Riku continues to work full-time at the store and shoots family portraits as a part-time entrepreneur subject to YEL insurance.
In what situation is YEL insurance voluntary?
You can take out voluntary YEL insurance in two situations:
- the scale of your entrepreneurial activities is so small that your YEL income does not exceed the YEL lower limit
- you are drawing an old-age pension under the earnings-related pension acts.