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Who should take YEL insurance?

As a self-employed person, you are responsible for your own employment pension insurance. As part of starting up your own entrepreneurial activities, you will need to take YEL insurance. YEL insurance ensures that you accrue employment pension for your future retirement and provides security if you become ill, have children or find yourself unemployed. YEL insurance is a statutory insurance and cannot be replaced by voluntary pension insurance.

You must have YEL insurance coverage from the moment you meet all the criteria listed below. You must take the insurance within six (6) months from the date on which you began any business activities that must be covered under YEL.

The Finnish Centre for Pensions oversees the insuring of entrepreneurs and, annually, sends out a reminder to those it believes may be obliged to take YEL insurance. The letter prompts entrepreneurs to clarify their own insurance needs. If you have received a letter and you are wondering whether you need YEL insurance, let us help you. Our Customer Service is ready to assist you by phone 020 694 730.

You must take YEL insurance if:

Insuring entrepreneurial activities within different company forms

Useful information

  • Managerial positions include: Managing director, Board member, Division director, Individual who has the right to sign for the company.
  • In small family businesses, the owner family members working in the company are generally. considered to be in a managerial position regardless of their formal titles.
  • Indirect ownership, meaning ownership of a company through other corporations or groups, is included when calculating ones share of ownership. A self-employed person also signifies a person who in fact runs a business, even if the operations of the business are formally registered in another person’s name, or within a corporation or group in which the controlling interest is formally in another person’s name.

Voluntary YEL insurance

If your entrepreneurial activities are so minimal that your YEL income falls below the minimum limit, you can still opt to take voluntary YEL insurance. YEL insurance is also voluntary for a self-employed person who is receiving an old-age pension in accordance with the employment pension legislation. Voluntary insurance can be terminated whenever one chooses, but not retroactively. It is also not possible for voluntary insurance to begin retroactively.