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YEL insurance

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You need to take YEL insurance once you have initiated entrepreneurial activities. YEL insurance ensures that you accrue employment pension for your future retirement and provides security if you become ill, are on parental leave or find yourself unemployed.

YEL insurance is a statutory insurance and cannot be replaced by voluntary pension insurance. As a self-employed person, you are responsible for your own employment pension insurance.

Become a policyholder in minutes

It's easy and fast to take YEL insurance using our online application form. Go to the application form from the link below.

Would you like us to contact you?

Do you need help with issues concerning the initiation of YEL insurance? Please leave your contact information and the best time to reach you and we’ll be in touch.

When do you need YEL insurance?

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You need to take YEL insurance when you meet the following conditions:

Your YEL income is at least €8 261,71 per year (2022)
The YEL income amount is your own estimate of the value of your work input in the company, and it should correspond to such wages that would be reasonable to pay to an employee for the same or similar work. YEL income, thus, refers to the monetary value of your own work input.

Your entrepreneurial activities have lasted without interruption for at least 4 months
Your entrepreneurial activities must last a minimum of 4 months in order for you to meet the obligation to take YEL insurance. Seasonal entrepreneurial activities must also be insured under YEL if the activities continue from one year to the next, even though they may cease for several months in between. For example, an entrepreneur who runs a summer kiosk is generally considered to have business activities that continue consistently from one year to the next.

You work in your own company
YEL insurance is not required if you simply own a company or part thereof, you must also be employed within the company. Entrepreneurial activities that are carried out part-time must also be insured under YEL if the other conditions for YEL insurance are met. If you simultaneously work as an employee for another company, your employer will also pay the statutory TyEL contributions, as prescribed by the Employee’s Pension Act, for your earnings from that company. In this way, you can simultaneously be insured under YEL and TyEL insurance.

You are a self-employed person between the ages of 18-68
The obligation to take YEL insurance starts at the beginning of the calendar month following the month in which the self-employed person turns 18 and continues until the end of the month in which the person turns 68. The upper age limit for insuring rises gradually according to one’s year of birth as follows:  
• 68 for those born in or before 1957
• 69 years for those born between 1958-1961
• 70 years for those born in or after 1962.

 

Who is considered a self-employed person within the different company forms?

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Take YEL insurance within six months

You need to take YEL insurance within six (6) months from the date on which you initiated entrepreneurial activities. The insurance should be taken as of  the date on which your entrepreneurial activities that meet the YEL conditions have begun. If, for example, you notice in December that your input in your entrepreneurial activities, which began in September, has exceeded the euro amount limit as of the beginning of October and the other conditions for YEL insurance have been met, you must take YEL insurance in December to begin retroactively as of 1 October.

The annual YEL income limit of €8.261,71 means €689 per month.

  • The figures below represent the monthly YEL income of a starting entrepreneur.
  • YEL insurance should be taken once the monthly YEL income exceeds €689. 
 
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The insurance can be taken retroactively for the current and preceding three (3) calendar years. It is, however, wise to take the insurance within the initial six (6) months, since a policy initiated at a later point may result in an increased payment for the period of delay.

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 can be reached at +358 (0)20 694 730.

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.
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