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Payments and certificates

The amount of your YEL insurance contribution is affected by your age, your YEL income, a possible discount for starting entrepreneurs, the timing of your payments and the number of payment instalments.

YEL insurance contribution 2022

The Ministry of Social Affairs and Health annually confirms the contribution percentages according to which the YEL insurance contributions are calculated. In 2022, the YEL insurance contribution is:

  • For those aged 18–52, 24.10% of the confirmed YEL income. 
  • For those aged 53–62, 25.60% of the confirmed YEL income.
  • For those aged 63 and older, 24.10% of the YEL income from the beginning of the year following the year in which the individual turns 63.

You can calculate an estimate of your YEL contribution using Elo’s YEL calculator.

Do you need a YEL certificate?

You can print or save the following YEL certificates from our Online Service:

  • Validity and payment certificate
  • Yel income certificate
  • YEL income and payment certificate (e.g., as an attachment to an application for an allowance from the unemployment fund)
  • Certificate of paid contributions (in 2020 and 2021)
  • Record of the current payment situation

You can also fill in your information for electronic invoicing at our Online Service.

 

Reduced contributions for starting entrepreneurs

As a starting entrepreneur, you are entitled to a 22 per cent discount on your YEL insurance contributions for the first 48 months of your business activities.

If your initial YEL insurance policy started after 1 January 2001 and you still have months of discount remaining, those months of discount are applicable to your second YEL insurance. The discount cannot, however, be applied to a third YEL insurance period, even if the total amount of the discount periods is less than 48 months.

The first time that you transfer from TyEL to YEL coverage, your entrepreneurial activities are considered to have begun on the date of transfer.

You are not entitled to the discount for starting entrepreneurs if the Finnish Centre for Pensions has been compelled to take a YEL insurance policy on your behalf as a result of your negligence.

Did you know that your YEL contributions are tax-deductible?

YEL contributions are entirely deductible in either the entrepreneur’s personal taxation or that of a spouse or a company, depending on who has been designated as the payer for the YEL insurance. When the YEL contribution has been deducted in taxation, the actual amount paid by you is less. If you need a certificate confirming your paid YEL contributions, you can get it easily from our Online Service.

Useful information about YEL contributions

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Flex pay for YEL insurance contributions

You can accrue additional pension for yourself during good financial years by paying a higher YEL contribution or opt to reduce the contribution during less profitable years. This is referred to as the YEL flex pay system. YEL flex pay temporarily decreases or increases your insurance contributions for one calendar year at a time.

Flex pay is possible if:

  • Your YEL insurance policy is valid for the entire year in the same pension company
  • There are no outstanding payments on your YEL insurance policy
  • You are not yet receiving employment pension from Finland
  • You are not receiving the discount for a starting entrepreneur.

You can pay an additional contribution every year, if you want, but you can only decrease your contribution, at the most, three times within a seven-year period. The combined total of the additional contribution and your YEL insurance contribution must not exceed the maximum for YEL income, or 187,625.00 euro in 2022.

Additional contributions are tax deductible either for the company or the entrepreneur, as determined by the payer information submitted to the pension company.

Flex pay only concerns the YEL income that serves as the basis for your future pension, it does not affect other social benefits, such as the sickness allowance, that are determined in accordance with the confirmed YEL income based on work input.

Check the flex pay amount and fill out a flex pay application in Elo’s Online Service.

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