YEL insurance

The entrepreneur's pension insurance, ie. YEL insurance, is an obligatory insurance that forms the basis of the entrepreneur's social security in Finland. Here you can buy a YEL insurance easily online. The insurance is issued by our partner Varma. 

Get YEL insurance

The entrepreneur's pension insurance YEL

The YEL insurance is the basis for your social security as an entrepreneur and business owner. A YEL insurance is a compulsory insurance for all entrepreneurs aged 18–69 whose business is active for at least four months in a row and whose estimated annual YEL income is more than € 8,261,71 (in 2022). As a self-employed person you are recommended to take out the insurance as soon as the insurance obligation is fulfilled, no later than within six months of starting the business, in accordance with the Act on Company Pension Funds in Finland. Keep in mind that the YEL insurance cannot be replaced by voluntary pension insurance.

When you hire your first employee, you also need an employee pension insurance, i.e. a TyEL insurance.

Who needs YEL insurance coverage?

As an entrepreneur or business owner, you should get a YEL insurance if

  • You are 18-67 years old
  • You work for your company
  • You have been an entrepreneur for at least 4 consecutive months
  • Your estimated YEL income is at least € 8,261,71 per year (2022).

Read more about YEL insurance and YEL income on our partner Varma's webpage.

YEL earned income and insurance fee

It is important, that you inform your YEL earnings correctly, as your income is the basis for how your pension and social security are calculated. For example, sickness benefit, parental benefit, and unemployment benefit are calculated based on your YEL earnings. Your earned income also affects insurance premiums. YEL earned income refers to the estimated financial value of your work effort over a 12-month period.

YEL calculator

As a self-employed person, you calculate your YEL earnings yourself, but the pension company confirms it. The income should match the salary you would pay to an employee with the same skills as yourself. Try our partner Varma’s YEL calculator and calculate how your YEL income affects your social security and estimate your insurance contribution. We recommend that you increase or decrease your YEL income according to your company’s operations.  This way, your pension accrues according to your sector’s true earnings level and the basis for your social security is assured. You can change your YEL income as often as you need to, but not retroactively.

Discount for new entrepreneurs

Newly established entrepreneurs receive a 22% discount on YEL contributions for the first 4 years. The entrepreneur’s pension insurance contribution is fully tax deductible in your personal or corporate taxation.

Other important business insurances