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Entrepreneur’s parental allowance

When your family grows with the birth of a child, you as an entrepreneur can take parental leave just like employees. During parental leave, Kela pays you parental allowance, which is based on your YEL income. The allowance secures your livelihood and at the same time accrues your future pension.
 

Parental allowances and YEL income

You can take the same family leaves as employees. You are also entitled to the same benefits:

  • pregnancy allowance
  • special pregnancy allowance
  • parental allowance
  • partial parental allowance

In addition, you can receive flexible care allowance if your child is under 3 years old and your working hours are no more than 30 hours per week or 80% of full-time work.

Read more about Kela’s different benefits

Kela’s parental allowances are based on annual income. For entrepreneurs, annual income is determined by YEL income. If your income has changed during the past 12 months, Kela uses the average income. The allowance also accrues your future pension.

YEL insurance during family leave

If you do not work during family leave, your YEL insurance can be terminated on your last working day. In that case, you must apply for a new insurance when you return to work.

If you continue working during family leave, your YEL insurance will not be terminated. However, it may be necessary to adjust your YEL income if your contribution to the business decreases during the leave.

How much parental allowance will I receive?

Check our calculator to see how your YEL income affects parental allowance and other benefits.

Go to the YEL calculator

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