Changes in entrepreneurial activities

What should I do in the following situations?

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How and when can the YEL insurance be terminated?

The YEL insurance can be terminated if your work as an entrepreneur ends completely or when your work input falls below the minimum limit (7,799.37 euro in 2019).

YEL insurance can also be terminated due to a maternity leave if the obligation to insure is not met during the period of the maternity leave.

The insurance may also terminate during extended sick leaves that last several months.

If necessary, the insurance can also be terminated retroactively.

You can terminate your insurance policy through Elo’s Online Service >

The form of the company or business has changed

After a change of company or company form, if you still fall within the sphere of YEL insurance, your current YEL insurance policy will continue and the changes will be recorded in the policy. Notify Elo as soon as possible of the official name, business ID and address of the new or changed company, and include the date of the change. Also notify whether you want the invoicing for your YEL insurance to be addressed to your company or to you personally. When the situation changes, your work input may also change, so please remember to check that your YEL income amount is up-to-date.

Entrepreneur have become ill

YEL insurance cannot be interrupted temporarily. It can, however, be terminated due to an extended sick leave. In this case, you will need to take a new YEL insurance policy when you return to work after your sick leave.

The sickness allowance shall be applied for from Kela. Kela uses the confirmed YEL income on which your YEL insurance is based for the purpose of determining the amount of the sickness allowance. The average YEL income for 2017 serves as the basis for any sickness allowance beginning in 2019. Your daily allowance can also be based on the YEL income you received during the 6-month period preceding your sick leave if, when changed into an annual income, this amount is 20 per cent higher than the income confirmed in your taxation for 2017 after being adjusted with the wage coefficient.

Read more from Kela's website >

Entrepreneur has intend to take a family leave

If you are not working during your family leave, your YEL insurance can be terminated. In this case, you will need to take a new insurance policy when you return to work. If you are working during your family leave, your YEL insurance cannot be terminated. It might be a good idea, however, to ensure that your YEL income is adjusted to accurately reflect your work input during the leave.

The parental allowance shall be applied for from Kela. Kela uses the confirmed income on which your YEL insurance is based for the purpose of determining the amount of the parental allowance.

Unemployment

A self-employed person who is a member of an unemployment fund may receive an earnings-related allowance after 15 months of membership and if the entrepreneurial activities are considered to be substantial in the manner intended by the Unemployment Security Act. In other words, the YEL income has been at least the minimum required for unemployment security (12, 816 euro in 2019) and the condition regarding previous employment is met.

If you are not a member of an unemployment fund, but your income has been at least the minimum required for unemployment security and the condition regarding previous employment is met, you may be entitled to the basic unemployment allowance provided by Kela.

If your income falls below the set minimum, you can apply for a labour market subsidy from Kela.

Retirement on old-age pension
A self-employed person shall apply for the payment of old-age pension, at the earliest, when the lowest pensionable age is approaching. It is recommended that the pension application be completed approximately a few weeks prior to the date on which you plan to retire. You can view your individual pensionable age and pension estimate in Elo’s Online Service. You can also complete your pension application in the same service.
Entrepreneurial activities during pension

If you are receiving old-age pension in accordance with the employment pension legislation, the insuring of entrepreneurial activities with YEL insurance is voluntary. Voluntary pension insurance must be applied for separately after pension has been granted, since the YEL insurance is terminated automatically on the day preceding the date on which the pension is granted.

Any entrepreneurial activities carried out alongside partial early old-age pension, disability pension or partial disability pension must be insured under YEL if the conditions for insuring are otherwise fulfilled.